-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Fo7/WEuIU8JB439sh1EEZJ7lCvZ/7NN5U6EVxbsQoE0ik17WQo42WHiqhBP85UnE
 sEsuafT0bmjfNCBUb5kSkQ==

<SEC-DOCUMENT>0000950123-09-011999.txt : 20090608
<SEC-HEADER>0000950123-09-011999.hdr.sgml : 20090608
<ACCEPTANCE-DATETIME>20090608062052
ACCESSION NUMBER:		0000950123-09-011999
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		16
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090608
DATE AS OF CHANGE:		20090608

FILER:

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

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33107
		FILM NUMBER:		09878455

	BUSINESS ADDRESS:	
		STREET 1:		675 COCHRANE DRIVE, EAST TOWER
		STREET 2:		6TH FLOOR
		CITY:			MARKHAM
		STATE:			A6
		ZIP:			L3R 0B8
		BUSINESS PHONE:		(85-512) 6690-8088

	MAIL ADDRESS:	
		STREET 1:		NO. 199 LUSHAN ROAD, SUZHOU NEW DISTRICT
		STREET 2:		SUZHOU
		CITY:			JIANGSU
		STATE:			F4
		ZIP:			215129
</SEC-HEADER>
<DOCUMENT>
<TYPE>20-F
<SEQUENCE>1
<FILENAME>h03379e20vf.htm
<DESCRIPTION>FORM 20-F
<TEXT>
<HTML>
<HEAD>
<TITLE>e20vf</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 -->

<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: 14pt">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: 1pt; 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"><FONT style="white-space: nowrap">Form&#160;20-F</FONT></FONT></B>
</DIV>

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

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="9%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="90%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">(Mark One)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>REGISTRATION STATEMENT PURSUANT TO SECTION&#160;12(b) OR
    12(g) OF THE SECURITIES EXCHANGE ACT OF 1934</B>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT style="font-size: 10pt">OR</FONT></B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>ANNUAL REPORT PURSUANT TO SECTION&#160;13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">For the fiscal year ended
    December&#160;31, 2008.</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT style="font-size: 10pt">OR</FONT></B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>TRANSITION REPORT PURSUANT TO SECTION&#160;13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934</B>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT style="font-size: 10pt">OR</FONT></B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>SHELL COMPANY REPORT PURSUANT TO SECTION&#160;13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Date of event requiring this
    shell company report</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">For the transition period
    from&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</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="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">Commission file number:
    <FONT style="white-space: nowrap">001-33107</FONT></FONT></B>
</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: 24pt">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">
    <I><FONT style="font-size: 8pt">(Exact name of Registrant as
    specified in its charter)</FONT></I>
</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">N/A<BR>
    <BR>
    <CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=109 iwidth=540 length=84 --></FONT></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">
    <I><FONT style="font-size: 6pt">(Translation of
    Registrant&#146;s name into English)</FONT></I>
</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">Canada<BR>
    <CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=128 iwidth=540 length=84 --></FONT></B>
</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: 6pt">(Jurisdiction of incorporation
    or organization)</FONT></I>
</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">199 Lushan Road</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">Suzhou New District</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">Suzhou, Jiangsu 215129</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">People&#146;s Republic of
    China</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: 6pt">(Address of principal executive
    offices)</FONT></I>
</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">Arthur Chien, Chief Financial
    Officer</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">675 Cochrane Drive</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">East Tower, 6th Floor</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">Markham, Ontario L3R
    0B8</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">Canada</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">Tel: (1-905)
    <FONT style="white-space: nowrap">530-2334</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">
    <B><FONT style="font-size: 8pt">Fax: (1-905)
    <FONT style="white-space: nowrap">530-2001</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: 6pt">(Name, Telephone,
    <FONT style="white-space: nowrap">E-mail</FONT>
    and/or Facsimile number and Address of Company Contact
    Person)</FONT></I>
</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">Securities registered or to be
    registered pursuant to Section&#160;12(b) of the Act:</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: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&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">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title of Each Class</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Each Exchange on Which Registered</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <B>Common shares with no par value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>The NASDAQ Stock Market LLC<BR>
    (The NASDAQ Global Market)</B>
</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>

<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">Securities registered or to be
    registered pursuant to Section&#160;12(g) of the Act:<BR>
    None<BR>
    </FONT></B><I><FONT style="font-size: 8pt">(Title of
    Class)</FONT></I>
</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">Securities for which there is a
    reporting obligation pursuant to Section&#160;15(d) of the
    Act:</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">None</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">(Title of Class)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; 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">
    Indicate the number of outstanding shares of each of the
    issuer&#146;s classes of capital or common stock as of the close
    of the period covered by the annual report.
</DIV>

<DIV style="margin-top: 3pt; 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">
    35,686,313&#160;common shares issued and outstanding, excluding
    58,250 restricted shares which were subject to restrictions on
    voting, dividend rights and transferability, as of
    December&#160;31, 2008
</DIV>

<DIV style="margin-top: 3pt; 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">
    Indicate by check mark if the registrant is a well-known
    seasoned issuer, as defined in Rule&#160;405 of the Securities
    Act.&#160;&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; 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 report is an annual or transition report, indicate by
    check mark if the registrant is not required to file reports
    pursuant to Section&#160;13 or 15(d) of the Securities Exchange
    Act of
    1934.&#160;&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; 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">
    Indicate by check mark whether the registrant (1)&#160;has filed
    all reports required to be filed by Section&#160;13 or 15(d) of
    the Securities Exchange Act of 1934 during the preceding
    12&#160;months (or for such shorter period that the registrant
    was required to file such reports), and (2)&#160;has been
    subject to such filing requirements for the past
    90&#160;days.&#160;&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>&#160;&#160;&#160;&#160;&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; 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">
    Indicate by check mark whether the registrant has submitted
    electronically and posted on its corporate Web site, if any,
    every Interactive Data File required to be submitted and posted
    pursuant to Rule&#160;405 of
    <FONT style="white-space: nowrap">Regulation&#160;S-T</FONT>
    (&#167;&#160;232.405 of this chapter) during the preceding
    12&#160;months (or for such shorter period that the registrant
    was required to submit and post such
    files).&#160;&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; 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">
    Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, or a non-accelerated
    filer. See definition of &#147;accelerated filer and large
    accelerated filer&#148; in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange Act. (Check one):
</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="33%"></TD>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">Large
    accelerated filer
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Accelerated filer
    <FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Non-accelerated filer
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; 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">
    Indicate by check mark which basis of accounting the registrant
    has used to prepare the financial statements included in this
    filing: U.S.&#160;GAAP
    <FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT><BR>
    International Financial Reporting Standards as issued by the
    International Accounting Standards Board
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;Other
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; 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 &#147;Other&#148; has been checked in response to the
    previous question, indicate by check mark which financial
    statement item the registrant has elected to follow.
    Item&#160;17
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    Item&#160;18
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; 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 is an annual report, indicate by check mark whether the
    registrant is a shell company (as defined in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange
    Act).&#160;&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; 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">
    (APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
    DURING THE PAST FIVE YEARS)
</DIV>

<DIV style="margin-top: 3pt; 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">
    Indicate by check mark whether the registrant has filed all
    documents and reports required to be filed by Sections&#160;12,
    13 or 15(d) of the Securities Exchange Act of 1934 subsequent to
    the distribution of securities under a plan confirmed by a
    court.&#160;&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 4pt; 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">&nbsp;</H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<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</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="4%">&nbsp;</TD>	<!-- colindex=01 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=01 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="83%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<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>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#130'>Introduction </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 colspan="5" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>Part&#160;I</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Item&#160;1.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#102'>Identity of Directors, Senior Management and
    Advisers</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Item&#160;2.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#103'>Offer Statistics and Expected Timetable</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Item&#160;3.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#104'>Key Information</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Item&#160;4.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#105'>Information on the Company</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Item&#160;4A.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#106'>Unresolved Staff Comments</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Item&#160;5.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#107'>Operating and Financial Review and Prospects</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Item&#160;6.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#108'>Directors, Senior Management and Employees</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Item&#160;7.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#109'>Major Shareholders and Related Party
    Transactions</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Item&#160;8.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#110'>Financial Information</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Item&#160;9.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#111'>The Offer and Listing</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Item&#160;10.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#112'>Additional Information</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Item&#160;11.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#113'>Quantitative and Qualitative Disclosures About
    Market Risk</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Item&#160;12.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#114'>Description of Securities Other than Equity
    Securities</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" valign="top">
    <A HREF='#115'>Part&#160;II</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>Item&#160;13.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#116'>Defaults, Dividend Arrearages and
    Delinquencies</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>Item&#160;14.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#117'>Material Modifications to the Rights of Security
    Holders and Use of Proceeds</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>Item&#160;15.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#118'>Controls and Procedures</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>Item&#160;16A.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#119'>Audit Committee Financial Expert</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>Item&#160;16B.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#120'>Code of Ethics</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'>Item&#160;16C.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#121'>Principal Accounting Fees and Services</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>Item&#160;16D.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#122'>Exemptions from the Listing Standards for Audit
    Committees</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'>Item&#160;16E.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#123'>Purchases of Equity Securities By the Issuer and
    Affiliated Purchasers</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#124'>Item&#160;16F.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#124'>Change in Registrant&#146;s Certifying
    Accountant</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#125'>Item&#160;16G.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#125'>Corporate Governance</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" valign="top">
    <A HREF='#126'>Part&#160;III</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#127'>Item&#160;17.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#127'>Financial Statements</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#128'>Item&#160;18.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#128'>Financial Statements</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#129'>Item&#160;19.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#129'>Exhibits</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv4w1.htm">EX-4.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv4w2.htm">EX-4.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv4w3.htm">EX-4.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv4w4.htm">EX-4.4</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv4w5.htm">EX-4.5</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv4w6.htm">EX-4.6</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv8w1.htm">EX-8.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv12w1.htm">EX-12.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv12w2.htm">EX-12.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv13w1.htm">EX-13.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv13w2.htm">EX-13.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h03379exv23w1.htm">EX-23.1</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="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: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='130'>
<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">INTRODUCTION</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated, references in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    to:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    &#147;CSI,&#148; &#147;we,&#148; &#147;us,&#148; &#147;our
    company&#148; and &#147;our&#148; are to Canadian Solar Inc.,
    its predecessor entities and its consolidated 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;
</TD>
    <TD align="left">
    &#145;&#145;$,&#148; &#147;US$&#148; and
    &#147;U.S.&#160;dollars&#148; are to the legal currency 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;
</TD>
    <TD align="left">
    &#147;RMB&#148; and &#147;Renminbi&#148; are to the legal
    currency of China;
</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;
</TD>
    <TD align="left">
    &#147;C$&#148; and &#147;Canadian $&#148; are to the legal
    currency of 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;
</TD>
    <TD align="left">
    &#145;&#145;&#128;&#148; and &#147;Euro&#148; are to the legal
    currency of the European Union;&#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;
</TD>
    <TD align="left">
    &#147;China&#148; and the &#147;PRC&#148; are to the
    People&#146;s Republic of China, excluding, for the purposes of
    this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    only, Taiwan and the special administrative regions of Hong Kong
    and Macau.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    includes our audited consolidated financial statements for the
    years ended December&#160;31, 2006, 2007 and 2008 and as of
    December&#160;31, 2007 and 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All translations from Renminbi to U.S.&#160;dollars were made at
    the noon buying rate in The City of New York for cable transfers
    in Renminbi per U.S.&#160;dollar as certified for customs
    purposes by the Federal Reserve Bank of New York. Unless
    otherwise stated, the translation of Renminbi into
    U.S.&#160;dollars has been made at the noon buying rate in
    effect on December&#160;31, 2008, which was RMB6.8225 to $1.00.
    We make no representation that the Renminbi or dollar amounts
    referred to in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    could have been or could be converted into dollars or Renminbi,
    as the case may be, at any particular rate or at all. See
    &#147;Item&#160;3. Key Information&#160;&#151; D. Risk
    Factors&#160;&#151; Risks Related to Doing Business in
    China&#160;&#151; Fluctuations in exchange rates could adversely
    affect our business, including our financial condition and
    results of operations.&#148; On June&#160;1, 2009, the noon
    buying rate was RMB6.8270 to $1.00.
</DIV>

<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
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</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;
</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;
</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;
</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;
</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;
</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;
</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;
</TD>
    <TD align="left">
    our beliefs and expectations regarding the use of upgraded
    metallurgical grade silicon materials (UMgSi) and solar power
    products made of this material;
</TD>
</TR>

</TABLE>

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

<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="2%"></TD>
    <TD width="94%"></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;
</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;
</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;
</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;
</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;
</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;
</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: 4%; 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 &#147;Item&#160;3. Key Information&#160;&#151;
    D. 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 annual report 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. We do not undertake any obligation to
    update or revise the forward-looking statements except as
    required under applicable law.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    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 -->
<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">PART&#160;I</FONT></B>
</DIV>
</A>
<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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;1.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='102'></A><B><I><FONT style="font-family: 'Times New Roman', Times">IDENTITY
    OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;2.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='103'></A><B><I><FONT style="font-family: 'Times New Roman', Times">OFFER
    STATISTICS AND EXPECTED TIMETABLE</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;3.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='104'></A><B><I><FONT style="font-family: 'Times New Roman', Times">KEY
    INFORMATION</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Selected
    Financial Data</FONT></U></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Selected
    Consolidated Financial and Operating Data</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following selected statement of operations data for the
    years ended December&#160;31, 2006, 2007 and 2008 and the
    balance sheet data as of December&#160;31, 2007 and 2008 have
    been derived from our audited consolidated financial statements,
    which have been audited by Deloitte Touche Tohmatsu CPA Ltd., an
    independent registered public accounting firm. The report of
    Deloitte Touche Tohmatsu CPA Ltd. on those financial statements
    is included elsewhere in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
    You should read the selected consolidated financial data in
    conjunction with those financial statements and the related
    notes and &#147;Item&#160;5. Operating and Financial Review and
    Prospects&#148; included elsewhere in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our selected consolidated statement of operations data for the
    years ended December&#160;31, 2004 and 2005 and our consolidated
    balance sheet data as of December&#160;31, 2004, 2005 and 2006
    have been derived from audited consolidated financial statements
    that are not included in this annual report.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All audited financial statements are prepared and presented in
    accordance with U.S.&#160;GAAP. 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: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&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="3%">&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="3%">&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="3%">&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="3%">&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 -->
</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="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(In thousands of US$, except share and per share data, 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: 9pt">
    <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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net revenues
</DIV>
</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">
    302,798
</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">
    705,006
</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: 18pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</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">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (210
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,388
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Earnings (loss) per share, basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</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">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.30
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Shares used in computation, 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">
    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">
    27,283,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,566,503
</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: 9pt">
    <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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gross margin
</DIV>
</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">
    7.8
</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">
    10.1
</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: 18pt">
    Operating margin
</DIV>
</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">
    (0.6
</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">
    3.4
</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: 18pt">
    Net margin
</DIV>
</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">
    (0.1
</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">
    (1.3
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Selected operating 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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Products sold (in MW)
</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 align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    &#151;&#160;Standard solar modules
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.7
</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">
    83.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166.5
</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: 18pt">
    &#151;&#160;Specialty solar modules and products
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</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">
    0.2
</TD>
<TD 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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1
</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">
    14.9
</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">
    83.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166.5
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Average selling price (in $ per watt)
</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 align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    &#151;&#160;Standard solar modules
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.62
</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">
    3.92
</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">
    3.97
</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">
    3.75
</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">
    4.23
</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: 12pt; font-size: 1pt">&nbsp;</DIV>

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

<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="36%">&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 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" 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="8%" 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="8%" 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="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</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>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>
<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="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(In thousands of US$, except share data)</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">
    <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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</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">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    284,503
</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">
    570,731
</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">
    Net assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</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">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    126,266
</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">
    332,161
</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">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</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">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,866
</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">
    45,357
</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">
    Convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</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">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</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">
    1,000
</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">
    Capital
    stock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    211
</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">
    211
</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">
    97,302
</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">
    97,454
</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">
    294,707
</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">
    Number of shares
    outstanding<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</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">
    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">
    27,320,389
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,686,313
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</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: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Excluding long-term debt and convertible notes.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Excluding 566,190 and 58,250 restricted shares, which were
    subject to restrictions on voting and dividend rights and
    transferability, as of December&#160;31, 2007 and 2008
    respectively.</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Exchange
    Rate Information</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our manufacturing activities are primarily conducted in China
    and a portion of our expenses are denominated in RMB. Periodic
    reports made to shareholders will be expressed in
    U.S.&#160;dollars using the then current exchange rates. This
    annual report contains translations of RMB amounts into
    U.S.&#160;dollars at specific rates solely for the convenience
    of the reader. The conversion of RMB into U.S.&#160;dollars in
    this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    is based on the noon buying rate in The City of New York for
    cable transfers of RMB as certified for customs purposes by the
    Federal Reserve Bank of New York. Unless otherwise noted, all
    translations from RMB to U.S.&#160;dollars and from
    U.S.&#160;dollars to RMB in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    were made at a rate of RMB6.8225 to $1.00, the noon buying rate
    in effect as of December&#160;31, 2008. We make no
    representation that any RMB or U.S.&#160;dollar amounts could
    have been, or could be, converted into U.S.&#160;dollars or RMB,
    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 RMB into foreign exchange and through
    restrictions on foreign trade. On June&#160;1, 2009, the noon
    buying rate was RMB6.8270 to $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: 4%; 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="63%">&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 -->
</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>
</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>
</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: 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>
</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">
    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>
</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>
</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">
    7.9579
</TD>
<TD 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>
</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>
</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">
    6.8225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9193
</TD>
<TD 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">
    6.7800
</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">
    December
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8539
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8842
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8225
</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">
    2009
</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: 20pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8392
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8225
</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">
    6.8395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8241
</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">
    March
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8240
</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">
    6.8180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8180
</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">
    6.8278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8235
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8176
</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">
    June (through June&#160;1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8270
</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: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Annual averages are calculated from month-end rates. Monthly
    averages are calculated using the average of the daily rates
    during the relevant period.</TD>
</TR>

</TABLE>

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

<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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Capitalization
    and Indebtedness </FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Offer and Use of Proceeds </FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">D.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Risk
    Factors</FONT></U><FONT style="font-family: 'Times New Roman', Times">
    </FONT></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">As
    polysilicon supply increases, the corresponding oversupply of
    solar cells and panels may cause substantial downward pressure
    on the prices of such products, resulting in lower revenues and
    earnings.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Due to rapid industry-wide silicon production capacity expansion
    since 2008, the solar power industry is experiencing an
    oversupply of high-purity silicon. If additional polysilicon
    becomes available in the market in the future, polysilicon
    prices will continue to decrease. Increases in polysilicon
    production and an oversupply of solar wafers, cells and panels
    have resulted in substantial downward pressure on prices
    throughout the value chain. According to SolarBuzz, spot prices
    for polysilicon have fallen dramatically from a peak of over
    $400 per kilogram in mid-2008 to a low of $120 per kilogram in
    the first quarter of 2009. Similarly, SolarBuzz reported that
    solar panel prices have fallen from a high of approximately
    &#128;3.10 per watt in the third quarter of 2008 to as low as
    approximately &#128;2.10 per watt in the first quarter of 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have been renegotiating our supply agreements to bring them
    in line with market pricing for raw materials, and we wrote down
    our inventory in the fourth quarter of 2008. But if we are
    unable, on an ongoing basis, to continue to procure silicon and
    wafers at prices that decline in line with solar panel pricing,
    our revenues and margins could be adversely impacted, either due
    to higher costs compared to our competitors or due to further
    write-downs of inventory, or both. In addition, our market share
    could decline if our competitors are able to price their
    products more competitively than ours.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    execution of our growth strategy is dependent upon the continued
    availability of third-party financing arrangements for our
    customers, which is affected by general economic conditions.
    Tight credit markets could depress demand for solar products,
    hamper our expansion and materially affect our results of
    operations.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The general economy and limited liquidity and availability of
    credit could materially and adversely affect our business and
    results of operations. Most solar projects are financed using
    third-party debt and the cost of capital and the gearing ratio
    impact both systems demand and price. High cost of capital
    materially impacts the internal rate of return for solar
    projects and therefore puts downwards pressure on both solar
    systems and module prices, which typically comprise
    approximately 50% to 60% of the system equipment cost. In
    particular, 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. Lower gearing ratios may mean fewer projects are
    executed due to increased equity requirements combined with the
    limited availability of equity. In the event that suitable
    financing cannot be arranged, customers may be unable to honor
    their purchasing obligations to us. Collecting payment from
    customers facing liquidity challenges due to either their
    customer defaults or bank default on project loans may also be
    difficult. Tight credit markets could thus hamper our expansion
    and materially and adversely affect our results of operations.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market for on-grid applications, where solar power is used
    to supplement a customer&#146;s electricity purchased from the
    utility network or sold to a utility under tariff, depends in
    large part on the availability and size of government mandates
    and economic incentives because, at present, the cost of solar
    power exceeds retail electric rates in many locations. Such
    incentives vary by geographic market. Government bodies in many
    countries, most notably Spain, the United States, Germany,
    Italy, South Korea, Canada, Japan, Portugal, Greece, France and
</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">
    Australia, have provided incentives in the form of feed-in
    tariffs, rebates, tax credits, renewable portfolio standards,
    and other incentives and mandates to end-users, distributors,
    system integrators and manufacturers of solar power products to
    promote the use of solar energy in on-grid applications and to
    reduce dependency on other forms of energy. Some of these
    government mandates and economic incentives, such as the German
    EEG law, are scheduled to be reduced or to expire, or could be
    eliminated altogether. For example, in 2008, the digression rate
    of the feed-in tariffs was accelerated in both Germany and
    Spain. Depending on system size and total installations, the
    digression rate can be as much as 10% per year. This means that
    solar system costs will likely have to fall more quickly than
    previously anticipated. In addition, an annual project
    installation cap was introduced in Spain that will significantly
    reduce the demand for solar products in Spain in 2009 and
    thereafter. Because we sell into the on-grid market, the
    reduction, modification or elimination of government mandates
    and economic incentives in one or more of our customer markets
    could materially and adversely affect the growth of such markets
    or result in increased price competition, either of which could
    cause our revenue to decline and harm our financial results.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Advance
    payments to our polysilicon and silicon wafer suppliers and
    credit term sales offered to some of our customers expose us to
    the credit risks of such suppliers and customers and may
    increase our costs and expenses, which could in turn have a
    material adverse effect on our liquidity.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under supply contracts with certain of our multi-year silicon
    wafer suppliers, and consistent with historical industry
    practice, we have made advance payments to some of our suppliers
    prior to the scheduled delivery dates for polysilicon and
    silicon wafer supplies. In many cases, the advance payments were
    made without collateral for such payments. In addition, we offer
    some of our customers short-term
    <FONT style="white-space: nowrap">and/or</FONT>
    medium-term credit sales based on our relationship with them and
    market conditions, also without collateral. As a result, our
    claim for such payments or sales credit would rank as unsecured
    claims, which would expose us to the credit risks of our
    suppliers
    <FONT style="white-space: nowrap">and/or</FONT>
    customers in the event of their insolvency or bankruptcy. We
    employ a number of mechanisms to mitigate credit sales risk,
    such as export credit insurance, factoring arrangements and
    letters of credit. Additionally, we have been renegotiating our
    supply agreements to obtain more favorable payment terms.
    However, these risks may have a material adverse effect on our
    financial condition, results of operations and liquidity.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Our
    ability to adjust our raw materials costs may be limited as a
    result of our entering into long-term supply agreements with
    many of our polysilicon and wafer suppliers, and our cost of
    revenues and profitability could be materially and adversely
    affected if we fail to adjust such costs in a timely
    manner.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In early 2008, due to the shortages of polysilicon and silicon
    wafer supplies, we entered into a number of multi-year supply
    agreements in an effort to secure raw materials for our
    production demand with some of our major silicon and wafer
    suppliers. In response to the decline in prices of polysilicon
    and silicon wafers, beginning in the fourth quarter of 2008, we
    have temporarily suspended our orders of polysilicon and silicon
    wafers and have been re-negotiating the unit price and volume
    terms with most of these suppliers. We continue to purchase from
    most of these suppliers at adjusted prices in line with market
    prices for such products after signing supplemental agreements
    in the first quarter of 2009. If the prices of polysilicon or
    silicon wafers continue to decrease in the future and we are
    unable to re-negotiate, we may not be able to adjust our
    materials costs, and our cost of revenues could be materially
    and adversely affected. In the event that we are unable to
    re-negotiate these agreements, we may be required to make
    further inventory write-downs, which could have a material
    adverse effect on our business, financial condition, results of
    operations and prospects. In addition, during the course of such
    negotiations we may be subject to litigation if agreement cannot
    be reached with our suppliers. Such litigation may be costly and
    may divert management attention and other resources away from
    our business and could have a material adverse effect on our
    reputation, business, financial condition, results of operations
    and prospects.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    impact of seasonal variations in demand linked to construction
    cycles and weather conditions may impact our results of
    operation.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is subject to seasonal variations in demand linked
    to construction cycles and weather conditions. Purchases of
    solar products tend 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. For
    example, in the fourth quarter of 2008 and the first quarter of
    2009, severe winter weather in Germany prevented the
    installation of a
</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 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    significant number of solar systems, which resulted in reduced
    demand for solar products. Other countries, such as Canada, the
    U.S., China and Korea, may also experience significant
    seasonality.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
    SunPower Corporation, or SunPower, First Solar, Inc., or First
    Solar, BP Solar International Inc., or BP Solar, Sharp Solar
    Corporation, or Sharp Solar, and Renewable Energy Corporation,
    or REC, and China-based competitors such as Suntech Power
    Holdings Co., Ltd., or Suntech, Yingli Green Energy Holding
    Company Limited, or Yingli, and Trina Solar Limited, or Trina.
    We expect to face increasing competition in the future. Further,
    some 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
    the crystalline silicon technologies that we use. Solar modules
    produced using thin film materials, such as amorphous silicon,
    cadmium telluride and copper indium gallium diselenide (CIGS)
    technology, require either no silicon or significantly less
    silicon to produce than crystalline silicon solar modules such
    as the ones that we produce, and are less susceptible to
    increases in silicon costs. We may also face competition from
    semiconductor manufacturers, several of which have either
    announced plans to start or have already started production of
    solar modules. In addition, from a technological and capital
    investment perspective, the entry barriers in the solar module
    manufacturing business are relatively low given the low capital
    requirements and relatively low technological complexity
    involved.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Some 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 87.6%, 96.0% and 98.2% of our net revenues in 2006,
    2007 and 2008, respectively. Some of our competitors have more
    diversified product offerings and may be better positioned to
    withstand a decline in demand for solar power products. Some of
    our competitors are more vertically integrated than we are, from
    upstream silicon wafer manufacturing to solar power system
    integration. This may allow them to capture higher margins or
    have lower costs in the near term. 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Due to the industry-wide oversupply of high-purity silicon and
    solar wafers, cells and modules, and customers becoming more
    knowledgeable and selective, we believe that the key to
    competing successfully in the industry has shifted to sales and
    marketing activities, cost and quality management. We have
    conducted very limited advertising to date, focusing primarily
    on medium to larger sized solar power distributors and
    integrators in the European market. Although we are in the
    process of building a stronger marketing and sales force, we
    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. Banks are becoming more selective
    about the equipment they will finance in solar projects. In
    addition to quality considerations, they are evaluating solar
    manufacturers for their financial strength and sustainability in
    order to assess the likelihood that the manufacturer will be in
    a position to honor a
    <FONT style="white-space: nowrap">25-year</FONT>
    product warranty. 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, after
    we began to sell standard solar modules in 2004. As a result,
    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 the past, 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 and changing market.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</TD>
    <TD align="left">
    the availability and pricing of raw materials, particularly
    high-purity silicon and UMgSi 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;
</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;
</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;
</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;
</TD>
    <TD align="left">
    timing, availability and changes in government incentive
    programs and regulations, particularly in our key and 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;
</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>
</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;
</TD>
    <TD align="left">
    the loss of one or more key customers or the significant
    reduction or postponement of orders from these 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;
</TD>
    <TD align="left">
    availability of financing for on-grid and off-grid solar power
    applications;
</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;
</TD>
    <TD align="left">
    unplanned additional expenses such as manufacturing failures,
    defects or downtime;
</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;
</TD>
    <TD align="left">
    acquisition and investment related costs;
</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;
</TD>
    <TD align="left">
    geopolitical turmoil within any of the countries in which we
    operate or sell 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;
</TD>
    <TD align="left">
    foreign currency fluctuations, particularly in the Euro,
    U.S.&#160;dollar 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;
</TD>
    <TD align="left">
    our ability to establish and expand customer relationships;
</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;
</TD>
    <TD align="left">
    changes in our manufacturing costs;
</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;
</TD>
    <TD align="left">
    changes in the relative sales mix of our 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;
</TD>
    <TD align="left">
    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>
</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;
</TD>
    <TD align="left">
    the timing of new product or technology announcements or
    introductions by our competitors and other developments in the
    competitive environment;&#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;
</TD>
    <TD align="left">
    increases or decreases in electricity rates due to changes in
    fossil fuel prices or other factors.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We base our planned operating expenses in part on our
    expectations of future revenues, and a significant portion of
    our expenses will be fixed in the short-term. If the 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, utilities 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 requiring each European
    Union member state to 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 56.9%, 68.3%
    and 62.1% of our net revenues in 2006, 2007 and 2008,
    respectively, 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 but not
    limited to Germany, Italy, Spain, the U.S., France, Korea and
    China, 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</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>
    9
</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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    success of other alternative energy generation technologies,
    such as wind power, hydroelectric power, geothermal 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;
</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;
</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;
</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;
</TD>
    <TD align="left">
    changes in seasonal demands 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: 4%; 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">We may be
    unable to procure adequate sources of needed capital due to
    market conditions beyond our control, which may adversely impact
    our ability to grow our business.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are capital intensive. Despite our ability as a
    publicly traded company to raise capital via public equity and
    debt issuances in addition to traditional commercial banking
    credit, weakness in global capital and debt markets may
    adversely affect our results of operations if we are unable to
    access necessary capital to achieve our performance targets and
    expansion goals. We rely on working capital financing from PRC
    commercial banks for our daily operations. Although we are
    currently able to obtain new commercial loans from these PRC
    commercial banks, we cannot guarantee that we can continue to do
    so, which may have a material and adverse impact on us and our
    ability to expand our business. Our ability to obtain external
    financing in the future is subject to a variety of
    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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    our future financial condition, results of operations and cash
    flows;
</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;
</TD>
    <TD align="left">
    general market conditions for financing activities by
    manufacturers of photovoltaic and related products;&#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;
</TD>
    <TD align="left">
    economic, political and other conditions in the PRC 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are unable to obtain funding in a timely manner, on
    commercially acceptable terms, or at all, our growth prospects
    and future profitability may be adversely affected.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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, and the limited number of
    suppliers for other components, such as silver and aluminum
    paste, solar module backsheet, ethylene vinyl acetate (EVA)
    encapsulation sheet, high-transparent tempered glasses, junction
    boxes and connectors, could prevent us from timely delivering
    our products to our customers in the required quantities, which
    could result in order cancellations and decrease in
    revenues.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Currently, silicon materials are readily available at
    historically low prices. However, there is no guarantee that in
    the future this will remain the case. Historically silicon
    prices have fluctuated substantially and cycled between periods
    of oversupply and undersupply. We purchase silicon raw
    materials, which include solar grade silicon, solar wafers and
    solar cells, from a limited number of third-party suppliers. Our
    major suppliers of silicon raw materials include LDK Solar Co.,
    Ltd., or LDK, ReneSola Ltd, or ReneSola, and Konca Solar Cell
    (Wuxi) Ltd., or Konca, which provide us with solar wafers; and
    Neo Solar Power Corp., or Neo Solar, and China Sunergy Co.,
    Ltd., or China Sunergy, which provide us with solar cells. We
    have entered into long term supply agreements with LDK for the
    supply of wafers, with Neo Solar for the supply of cells, and
    with a few other overseas and domestic Chinese companies for the
    supply of solar wafers and solar cells. These suppliers may not
    be able to meet our quantities requirements, or keep pace with
    the price reductions or quality improvements necessary for us to
    price our products competitively. Supply may also be interrupted
    by accidents or disasters. For example, in late 2006, one of our
    major suppliers of solar wafers incurred serious fire damage to
    its silicon ingot furnaces, which in turn caused a shortage of
    multi-crystalline solar wafers, a key material for our products.
    In the first three quarters of 2008, we experienced
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</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">
    serious delays from another one of our major suppliers of solar
    wafers, which in turn caused delays and price increases of our
    solar modules for some of our customers. Delivery problems may
    also occur with suppliers for other components, such as silver
    and aluminum paste, solar module backsheets, EVA encapsulation
    sheets, high-transparency tempered glass, or junction boxes and
    connectors. The failure of a supplier for whatever reason to
    supply solar wafers, solar cells silicon raw materials or other
    essential components 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 access alternative sources on a timely basis or
    on commercially reasonable terms, 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.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, 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 78.8% and 52.6% of our
    net revenues in 2007 and 2008, respectively. Our top three
    customers each contributed over 10% of our net revenues in 2008.
    Sales to our customers are typically made through one-year
    framework 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 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</TD>
    <TD align="left">
    loss of one or more of our significant customers and our failure
    to identify additional or replacement 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;
</TD>
    <TD align="left">
    failure of any of our significant customers to make timely
    payment for our products;&#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;
</TD>
    <TD align="left">
    financial problems or even insolvencies of one or more of our
    significant customers.
</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: 4%; 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 expand our business and
    operations, 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have generally been required to make prepayments to certain
    suppliers of solar wafers, cells and silicon raw materials in
    the past. While we 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 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. For example, on August&#160;1, 2008, we entered into
    a one-year agreement with a customer for the sale of our solar
    modules, but the customer failed to comply with its contractual
    obligations due to sluggish domestic demand.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
</DIV>

<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 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 sufficient funds to support the
    expansion of our business may not always be available to us.
    Furthermore, we 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we have been actively exploring financing and
    investing opportunities in systems integrators and solar
    projects, either independently or in partnership with financial
    institutions or other third parties. Since we have little
    operating experience with these and related activities such as
    engineering, procurement, and construction contracting,
    negotiating power purchase agreements and operating power
    plants, we will be subject to new risks. These risks include but
    are not limited to failure to manage relationships with
    financial partners providing loans, completion risks associated
    with construction, regulatory risks such as those pertaining to
    grid connection, and contract risks with utility companies or
    other counterparties such as land owners regarding contracts
    such as power purchase agreements and land leases. Some of these
    contracts may contain material penalties or otherwise impact
    project viability. Moreover, investing in projects or systems
    integrators may impact our balance sheet, including but not
    limited to our cash and debt position, accounts receivable, and
    revenue recognition for prolonged periods of time.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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. 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. If we are unable to keep pace with technological
    advances, or if we are unable to adapt to changes in market
    demand brought on by technological advances, 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">We have
    begun to develop and expand the use of UMgSi as a component of
    our solar products. We cannot assure you that these efforts will
    continue to yield successful results.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In response to the shortage of high-purity silicon in the past,
    we believed that UMgSi provided a viable alternative source of
    silicon materials, and we have made efforts to develop
    technologies related to UMgSi solar products. We believe that we
    have made significant progress in this area, and we launched
    full scale commercial production of and sales of UMgSi solar
    products during 2008. However, we have less manufacturing
    experience with this material than with high-purity silicon, and
    we may be unable to continue to improve the efficiencies of
    cells and the production yield and cost of wafers, cells and
    modules made with UMgSi in order to reach our targets.
    Additionally, in the event that the market response to our UMgSi
    solar products is unfavorable, the use of this material may not
    be economically viable. Finally, the rapid reduction in
    high-purity silicon prices may render this product line
    uneconomical to produce if polysilicon prices fall far enough.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">We have
    limited experience in the high value-added building integrated
    photovoltaic (BIPV) market and we may be unable to manage the
    growth of our BIPV business or successfully operate in the BIPV
    market.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our first BIPV project was completed in Luoyang, China in 2007.
    BIPV products generally enjoy higher profit margins than
    standard photovoltaic modules, or PV modules, due to solar
    energy generation capabilities being integrated into the design
    of a building or structure. We intend to further expand our
    capabilities in the BIPV market and invest in research and
    development activities in such products. Due to our limited
    experience in the BIPV market, and the relatively small portion
    of our revenue that these projects currently comprise, there can
    be no assurance that we will successfully expand into this new
    area of business. We may not have the necessary research and
    development capabilities or marketing and sales personnel
    required to meet customer needs or manage our growth. In
    addition, we may face competitors in the BIPV market with
    substantially greater financial, technical, manufacturing and
    other resources. If we are unable to manage the growth of our
    BIPV business or if our BIPV products fail to meet the needs of
    our customers, there may be a material adverse effect on our
    reputation, existing business, financial condition or results of
    operations.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, 96.4% of our products were sold to customers outside
    China. The international marketing, distribution and sale of our
    PV products exposes 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    difficulties staffing and managing overseas operations;
</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;
</TD>
    <TD align="left">
    fluctuations in foreign currency exchange rates;
</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;
</TD>
    <TD align="left">
    increased costs associated with maintaining the ability to
    understand local markets and trends, as well as developing and
    maintaining an effective marketing and distributing presence in
    various countries;
</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;
</TD>
    <TD align="left">
    providing customer service and support in these 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;
</TD>
    <TD align="left">
    our ability to manage our sales channels effectively as we
    expand beyond distributors to include direct sales to systems
    integrators, end users and installers;
</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;
</TD>
    <TD align="left">
    difficulties and costs relating to compliance with the different
    commercial, legal and regulatory 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>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to develop appropriate risk management and internal
    control structures tailored to overseas operations;
</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;
</TD>
    <TD align="left">
    inability to obtain, maintain or enforce intellectual property
    rights;
</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;
</TD>
    <TD align="left">
    unanticipated changes in prevailing economic conditions and
    regulatory requirements;&#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;
</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: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are unable to effectively manage these risks, they could
    impair our ability to expand our business abroad.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</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="2%"></TD>
    <TD width="94%"></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;
</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;
</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;
</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;
</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: 4%; 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 founder, chairman, president and chief executive officer
    and Arthur Chien, our director and chief financial officer. If
    one or more of our executive officers are unable or unwilling to
    continue to serve in their 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>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we cannot test for all possible scenarios, our products
    may contain defects that are not detected until after they are
    shipped or installed. 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. For example, in one instance in
    2008, the differences between the visual quality inspection
    standards of our customer and us prompted us to replace a batch
    of solar modules for that customer. In another instance, in
    2009, customers raised concerns about the encapsulation quality
    of certain solar modules. Although these quality concerns did
    not affect the electrical output of the modules, we decided to
    replace the solar modules in question. We have studied the root
    causes of these quality issues and have implemented the
    necessary containment and corrective actions. 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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% and 20%,
    respectively, from 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-25-year warranty
    periods. Similarly, our UMgSi solar products, while silicon
    based and theoretically durable and viable as a reliable
    component for solar power products, are relatively new to the
    market and are subject to the same testing limitations as our
    other solar products. In particular, issues that are currently
    unknown may surface in the future after extended use. These
    issues could potentially affect our market reputation and
    adversely affect our revenues, giving rise to potential warranty
    claims by our customers. 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.
    Should these future warranty claims exceed accrued provisions,
    this may require us to adjust our financial forecasts and
    adversely affect our future earnings and operating results.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The solar power industry is evolving and circumstances may
    require us to make significant investments and strategic
    acquisitions or enter into strategic relationships with third
    parties in the future. Some of our competitors have already
    undertaken limited acquisitions and investments. We cannot
    assure you that we will be able to successfully make 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investments, strategic acquisitions 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 annual solar cell
    production capacity from these production lines reached
    100&#160;MW by the end of 2007 and 270&#160;MW by the end of
    2008. However, we only have limited and recent operating
    experience in this area and we may face significant product
    development 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 power
    technology. The technologies, designs and customer preferences
    for solar cells change more rapidly, and solar cell product life
    cycles are shorter than those
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</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">
    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: 4%; 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 toll manufacturing arrangements through a
    limited number of strategic partners, our existing relationships
    with solar cell suppliers may be disrupted if we engage in the
    large scale production of solar cells ourselves. 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 adversely affected.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have developed and been increasing our internal production
    capabilities for the manufacture of silicon ingots and wafers.
    We completed the initial phase of our ingot and wafer plant in
    the third quarter of 2008, reaching a nameplate capacity of
    ingots of 120&#160;&#151; 150&#160;MW by December 2008. We have
    limited prior operational experience in ingot and wafer
    production and will face significant challenges in further
    increasing our internal production capabilities, and we 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
    further 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are able to develop these production capabilities
    successfully, we will need to continuously enhance and modify
    these capabilities in order 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Problems in our facilities, including but not limited to
    production failures, construction delays, human errors, weather
    conditions, equipment malfunction or process contamination, may
    limit our ability to manufacture products, 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to continue to derive a small part of our revenues
    from sales of our new specialty solar modules and products,
    which our customers ask us to tailor design for them. We 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 expenditures to
    protect our intellectual property. Failure to protect our
    intellectual property rights may undermine our competitive
    position. We currently have 6 issued patents and 18 patent
    applications pending in the PRC for products that make up a
    relatively small percentage of our net revenues. We applied for
    registration of the &#147;Canadian Solar&#148; trademark in the
    United States in March 2009 and subsequently in a number of
    other jurisdictions. Currently, we also have 2 registered
    trademarks and 20 trademark applications pending in China for
    registration.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</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">
    These intellectual property rights afford only limited
    protection and the actions we take to protect our rights as we
    develop new specialty solar modules and products may not be
    adequate. 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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. 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: 4%; 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, which
    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 president of European sales, Gregory Spanoudakis,
    and ATS Automation Tooling Systems Inc., or ATS. ICP Global
    subsequently amended the complaint to include us, our
    subsidiary, CSI Solartronics (Changshu) Co., Ltd., or CSI
    Solartronics, and our founder, chairman, president 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conduct substantially all of our operations through our
    subsidiaries, CSI Solartronics, CSI Solar Manufacture Inc., or
    CSI Manufacturing, CSI Central Solar Power Co., Ltd., or CSI
    Luoyang, CSI Cells Co., Ltd., or CSI Cells, and Changshu CSI
    Advanced Solar Inc., or CSI Advanced, which are companies
    established in China. We rely on dividends paid by these
    subsidiaries for our cash needs, including the funds necessary
    to pay any dividends or other cash distributions that we may
    make to our shareholders, to service our debt 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% of their after-tax profit
    based on PRC accounting standards each year to their general
    reserves until the accumulative amount of such reserves reach
    50% of their 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 sufficient 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Fluctuations
    in exchange rates could adversely affect our business, including
    our financial condition and results of operations.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to 2007, the majority of our sales were denominated in
    U.S.&#160;dollars. Since the beginning of 2007, the majority of
    our sales have been denominated in Euros, although we may seek
    to have more sales denominated in U.S.&#160;dollars, depending
    on market conditions. Meanwhile, we have entered into multi-year
    supply contracts under which, consistent with industry practice,
    we have made advance payments in exchange for silicon wafers.
    These contract prices are fixed in either Euros or Renminbi. Our
    Renminbi costs and expenses are 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 enter into loan
    arrangements with Chinese commercial banks that are denominated
    in U.S.&#160;dollars and Renminbi. In addition, the greater part
    of our cash and cash equivalents are denominated in Renminbi.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The 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 and China&#146;s
    foreign exchange policies. 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 was permitted to fluctuate within a narrow and managed
    band against a basket of foreign currencies. This change in
    policy caused the Renminbi to appreciate approximately 21.5%
    against the U.S.&#160;dollar over the following three years.
    Since reaching a high against the U.S.&#160;dollar in July 2008,
    however, the Renminbi has traded within a narrow band against
    the U.S.&#160;dollar, remaining within 1% of its July 2008 high
    but never exceeding it. As a consequence, the Renminbi has
    fluctuated sharply since July 2008 against other freely traded
    currencies, in tandem with the U.S.&#160;dollar. For example,
    the Renminbi appreciated approximately 27% against the Euro
    between July 2008 and November 2008. It is difficult to predict
    how long the current situation may last and when and how it may
    change again.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, we incurred a net foreign currency exchange gain,
    caused by the depreciation of the U.S.&#160;dollar against the
    Euro, in the amount of $2.7&#160;million. However, in 2008 we
    incurred a foreign exchange loss, caused by the appreciation of
    the U.S.&#160;dollar against the Euro, of $5.6&#160;million, in
    spite of foreign exchange hedging. We cannot predict the impact
    of future exchange rate fluctuations and we may incur net
    foreign currency losses in the future. Furthermore, volatility
    in foreign exchange rates will to some extent hamper our ability
    to plan our pricing strategy. Also, since our revenues and
    expenses are distributed differently among the U.S.&#160;dollar,
    Renminbi and Euro, fluctuations in foreign exchange rates will
    affect our gross and net profit margins and our operating gains
    and losses. In particular, any future appreciation of the
    Renminbi against the U.S.&#160;dollar or Euro would tend to
    increase our costs relative to our revenue. To the extent that
    we are unable to pass along increased costs to our customers,
    our profitability may be materially reduced. Fluctuations in
    currency exchange rates could have a material adverse effect 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, along with other solar module product manufacturers, 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</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">
    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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of April&#160;30, 2009, Dr.&#160;Shawn Qu, our founder,
    chairman and chief executive officer, beneficially owned
    13,530,000 common shares, or 37.9% of our outstanding share
    capital, excluding restricted shares granted but yet to be
    vested and subject to restrictions on voting, dividend rights
    and transferability. As a result, 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>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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,
    suspension or even termination of our business
    operations.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 have
    expanded our silicon reclamation program and research and
    development activities and moved 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. Except for a
    failure to obtain certain approvals prior to starting production
    as disclosed in &#147;&#151; Risks Related to Doing Business in
    China&#160;&#151; We may face penalties 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.
    If we fail to comply with present or future environmental
    regulations, we may also be required to pay substantial fines,
    suspend production or cease operations. Any failure by us to
    control the use 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: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our solar modules and products must comply with the applicable
    environmental regulations where they are installed, and we may
    incur expenses to design and manufacture our products so as to
    comply with such regulations. 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 solar modules and products are re-classified as consumer
    electronics under the directive or if our customers located in
    other markets demand that they comply with this directive. This
    would require us to implement manufacturing process changes,
    such as changing the soldering materials used in panel
    manufacturing, in order to continue to sell into these markets.
    If compliance is unduly expensive or unduly difficult, we may
    lose market share and our financial results may be adversely
    affected.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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 original equipment manufacturer, or OEM, basis for our
    customers.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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;
    or &#147;Canadian Solar&#148; brand name or any of our possible
    future brand names will gain acceptance among customers.
    Moreover, because the range of products that we sell under our
    own brands and those
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</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">
    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 or Canadian Solar brand name or any
    of our possible future brand names 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We adopted a share incentive plan in 2006. As of
    December&#160;31, 2008, we had granted 2,124,979&#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, prescribes 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 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">If we
    fail to maintain an effective system of internal control over
    financial reporting, we may not be able to accurately report our
    financial results or prevent fraud.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to reporting obligations under
    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 its internal control over
    financial reporting in its annual report, which contains
    management&#146;s assessment of the effectiveness of its
    internal control over financial reporting. In addition, an
    independent registered public accounting firm must report on the
    effectiveness of the company&#146;s internal control over
    financial reporting. Our management has concluded that our
    internal control over financial reporting was effective as of
    December&#160;31, 2008. See &#147;Item&#160;15. Controls and
    Procedures.&#148; Our independent registered public accounting
    firm has issued an attestation report on the effectiveness of
    our internal control over financial reporting as of
    December&#160;31, 2008. See &#147;Item&#160;15. Controls and
    Procedures&#160;&#151; Attestation Report of the Independent
    Registered Public Accounting Firm.&#148; However, if we fail to
    maintain effective internal control over financial reporting in
    the future, our management and our independent registered public
    accounting firm may not be able to conclude that we have
    effective internal control over financial reporting at a
    reasonable assurance level. This could in turn result in the
    loss of investor confidence in the reliability of our financial
    statements and negatively impact the trading price of our common
    shares. Furthermore, we have incurred and anticipate that we
    will continue to incur considerable costs, management time and
    other resources in an effort to comply with Section&#160;404 and
    other requirements of the Sarbanes-Oxley Act.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</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">
    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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">We may
    face penalties for failing to comply with certain PRC legal
    requirements.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 are required to have
    their manufacturing facilities examined and approved by the PRC
    environmental protection authorities prior to the start of
    production. However, due to discrepancies between interpretation
    of the written law and its application to date, our subsidiary
    CSI Luoyang began production without obtaining such approval. As
    a result, there is a risk that we may be ordered by the relevant
    environmental protection authorities to cease manufacturing at
    this site and subjected to fines. To date, the local
    environmental protection authority has not taken any action
    against us and we are currently working with them to complete
    the examination and obtain the requisite approval. There can be
    no assurance that we will obtain the necessary approvals for
    additions or expansions to 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use dangerous chemicals, such as hydrochloric acid, in our
    production process. According to the PRC Regulations on the
    Safety Administration of Dangerous Chemicals, companies using
    dangerous chemicals shall conduct a safety evaluation on their
    manufacturing and storage instruments every two years, and the
    results of the safety evaluation shall be filed with the
    dangerous chemicals safety supervision and administration
    authorities. Because some of our PRC subsidiaries have either
    failed to conduct the safety evaluation or to complete the above
    filing procedure, we could be subject to fines or a revocation
    of relevant permits and licenses.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are required to comply with the PRC Construction Law and
    relevant regulations in the process of constructing our
    manufacturing facilities. For example, our PRC subsidiaries CSI
    Cells and CSI Advanced are required to have their recently
    constructed manufacturing facilities examined and accepted by
    relevant agencies before commencing operations. However, CSI
    Cells and CSI Advanced began operating these facilities without
    completion of the required examination and acceptance procedure.
    We are currently working with the relevant parties to undergo
    the required examination and acceptance procedures. However,
    there is a risk that we may be ordered by the relevant
    construction administrative authorities to rectify such
    non-compliance and be subject to fines.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our subsidiary, CSI Luoyang, commenced construction of its
    manufacturing facilities without obtaining a construction
    permit, which is required under PRC Construction Law. We are
    currently cooperating with relevant government agencies to
    obtain this required permit. However, there is a risk that we
    may be ordered by the relevant construction administrative
    authorities to rectify such non-compliance and be subject to
    fines.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    enforcement of the new labor contract law and increases in labor
    costs in the PRC may adversely affect our business and our
    profitability.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A new Labor Contract Law came into effect on January&#160;1,
    2008, and the Implementation Rules of the Labor Contract Law of
    the PRC were promulgated and became effective on
    September&#160;18, 2008. The new Labor Contract Law and the
    Implementation Rules impose more stringent requirements on
    employers with regard to executing written employment contracts,
    hiring temporary employees, and dismissing employees. In
    addition, under the newly promulgated Regulations on Paid Annual
    Leave for Employees, which came into effect on January&#160;1,
    2008, and their Implementation Measures, which were promulgated
    and became effective on September&#160;18, 2008, employees who
    have served for more than one year with an employer are entitled
    to a paid vacation ranging from five to 15&#160;days, depending
    on their length of service. Employees who waive such vacation
    time at the request of the employer shall be compensated for
    each vacation day waived at a rate equal to three times their
    normal daily salary. As a result of these new laws and
    regulations, our labor costs are expected to increase. Higher
    labor costs and labor disputes with our employees stemming from
    these new rules and regulations could adversely affect our
    business, financial condition, and results of operations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Our
    subsidiaries will lose certain tax benefits over the next
    several years and we expect to pay additional PRC taxes as a
    result, which could have a material adverse impact on our
    financial condition and results of operations.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2008, the new Enterprise Income Tax Law, or
    the new EIT Law, came into effective in China. Under the new EIT
    Law, both foreign-invested enterprises and domestic enterprises
    are subject to a uniform enterprise income tax rate of 25%.
    There is a transition period for enterprises which had been
    given preferential tax treatment under the previous tax law.
    Enterprises that were subject to an enterprise income tax rate
    lower than 25% will see the new uniform rate of 25% phased in
    over a five-year period from the beginning of 2008. Enterprises
    that were entitled to exemptions or reductions from the standard
    income tax rate for a fixed term may continue to enjoy such
    treatment until the fixed term expires, subject to certain
    limitations.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our subsidiary CSI Manufacturing currently enjoys a reduced EIT
    rate of 12.5% until the end of 2009, when its tax holiday
    expires. CSI Cell and CSI Luoyang are also subject to a reduced
    EIT rate of 12.5% until the end of 2011, when their tax holidays
    expire. CSI Advanced is exempt from tax this year and will be
    subject to an EIT rate of 12.5% until the end of 2012, at which
    time its tax holiday will expire as well. As the preferential
    tax benefits currently enjoyed by our PRC subsidiaries expire,
    their effective tax rates will increase significantly, which
    could have a material adverse effect 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">There are
    significant uncertainties on our tax liabilities regarding our
    income under the new Enterprise Income Tax Law of the
    PRC.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a Canadian company with substantially all of our
    manufacturing operations in China. Under the new EIT Law and its
    implementation regulations, both of which became effective on
    January&#160;1, 2008, enterprises established outside China
    whose &#147;de facto management bodies&#148; are located in
    China are considered PRC tax residents and will generally be
    subject to the uniform 25% enterprise income tax rate as to
    their global income. Under the implementation regulations, the
    term &#147;de facto management bodies&#148; is defined as the
    bodies that have, in substance, overall management control over
    such aspects as the production and business, personnel, accounts
    and properties of an enterprise. Currently there are no detailed
    rules or precedents governing the procedures and specific
    criteria for determining a company&#146;s de facto management
    bodies, which are applicable to us. As a substantial number of
    the members of our management team are located in China, we may
    be considered as a PRC tax resident under the new EIT Law and,
    therefore, subject to the uniform 25% enterprise income tax rate
    as to our global income. If our global income is subject to PRC
    enterprise income tax at the rate of 25%, our financial
    condition and results of operation may be adversely affected.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Dividends
    payable by us to our foreign investors and gains on the sale of
    our common shares may become subject to PRC enterprise income
    tax liabilities.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The implementation regulations of the new EIT Law provide that
    (i)&#160;if the enterprise that distributes dividends is
    domiciled in the PRC or (ii)&#160;if gains are realized from
    transferring equity interests of enterprises domiciled in the
    PRC, then such dividends or capital gains shall be treated as
    China-sourced income. Currently there are no detailed rules or
    precedents governing the procedures and specific criteria for
    determining what it means to be domiciled in the PRC. As such,
    it is not clear how the concept of domicile will be interpreted
    under the new EIT Law. Domicile may be interpreted simply as the
    jurisdiction where the enterprise is a tax resident. Therefore,
    if we are considered as a PRC tax resident enterprise for tax
    purposes, any dividends we pay to our overseas shareholders as
    well as any gains realized by such shareholders from the
    transfer of our common shares may be regarded as China-sourced
    income and, consequently, be subject to PRC withholding tax at a
    rate of up to 10%. If dividends we pay to our overseas
    shareholders as well as any gains realized by such shareholders
    from the transfer of our common shares are subject to PRC
    withholding tax, it may materially and adversely affect your
    investment return and the value of your investment in us.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</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">
    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: 4%; 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">We face
    risks related to health epidemics and other outbreaks.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business could be adversely affected by the effects of swine
    flu, avian flu or other adverse public health developments. From
    2005 to 2008, there have been reports of occurrences of avian
    flu in various parts of China, including a few confirmed human
    cases and deaths. In April 2009, an outbreak of swine flu
    occurred in Mexico and elsewhere. Any prolonged recurrence of
    swine flu, 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 swine flu, avian flu or
    any other outbreak or epidemic.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Common Shares</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    market price for our common shares may be volatile.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price for our common shares has been 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 June&#160;4,
    2009, the market price of our common shares ranged from $3.00 to
    $51.80&#160;per share. The closing market price of our common
    shares on June&#160;4, 2009 was $15.65&#160;per share. The
    market price of our common shares may continue to be volatile
    and subject to wide fluctuations in response to a wide variety
    of 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</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;
</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;
</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;
</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;
</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;
</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;
</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;
</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;
</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: 4%; 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Substantial
    future sales of our common shares in the public market, or the
    perception that such sales could occur, could cause the price of
    our common shares to decline.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 such sales could occur, could cause the market
    price of our common shares to decline. As of April&#160;30,
    2009, we had 35,686,313 common shares outstanding, excluding
    58,250 restricted shares granted but yet to be vested and
    subject to restrictions on voting, dividend rights and
    transferability. In addition, the number of common shares
    outstanding and available for sale will increase when the
    holders of our convertible notes receive common shares upon the
    conversion of their notes, or the holders of options to acquire
    our common shares receive our common shares upon the exercise of
    their options, subject to volume, holding period and other
    restrictions as applicable under Rule&#160;144 and Rule&#160;701
    under the Securities Act of 1933, as amended, or 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following provisions in our amended articles of continuance
    may deprive our shareholders of the opportunity to sell their
    shares at a premium over the prevailing market price by 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</TD>
    <TD align="left">
    Our board of directors is entitled to 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 to 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">You may
    have difficulty enforcing judgments obtained against
    us.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</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">
    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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <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 common shares.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, 2008.
    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 common
    share, certain adverse U.S.&#160;federal income tax consequences
    could apply to such U.S.&#160;person. See &#147;Item&#160;10.
    Additional Information&#160;&#151; E. Taxation&#160;&#151;
    United States Federal Income Taxation&#160;&#151; Passive
    Foreign Investment Company.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">We incur
    increased costs as a result of being a public company.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a public company, we incur significant legal, accounting and
    other public-company related expenses. For example, the
    Sarbanes-Oxley Act, and related rules and regulations
    implemented by SEC and the Nasdaq Global Market, have changed
    the corporate governance practices of public companies and have
    increased our legal and financial compliance costs and made some
    activities more time-consuming and costly. We cannot predict or
    estimate the amount of our future legal, accounting and other
    public-company related expenses, and the timing of such expenses.
</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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;4.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='105'></A><B><I><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    ON THE COMPANY</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">History
    and Development of the Company</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated under the laws of the Province of Ontario,
    Canada 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have formed the following wholly-owned subsidiaries:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    CSI Solartronics (Changshu) Co., Ltd., or CSI Solartronics,
    incorporated in November 2001, which has operations located in
    Changshu, China, where we manufacture primarily specialty 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;
</TD>
    <TD align="left">
    CSI Solar Manufacture Inc., or CSI Manufacturing, incorporated
    in January 2005, which has operations in Suzhou, China, where we
    manufacture primarily standard solar 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;
</TD>
    <TD align="left">
    CSI Solar Technologies Inc., or CSI Technologies, incorporated
    in August 2003, which has operations located in Changshu, China,
    where we conduct solar module product development;
</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;
</TD>
    <TD align="left">
    CSI Central Solar Power Co., Ltd., or CSI Luoyang, incorporated
    in February 2006, which has operations located in Luoyang,
    China, where we manufacture solar modules, ingots and wafers;
</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;
</TD>
    <TD align="left">
    CSI Cells Co., Ltd., or CSI Cells, incorporated in June 2006,
    which has operations located in Suzhou, China, where we
    manufacture solar cells;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    Changshu CSI Advanced Solar Inc., or CSI Advanced, incorporated
    in August 2006, which has operations located in Changshu, China,
    where we manufacture solar 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;
</TD>
    <TD align="left">
    CSI Solar Power Inc., or CSI Power, incorporated in April 2008
    and located in Changshu, China, where we intend to manufacture
    solar modules once construction of the plant is
    complete;&#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;
</TD>
    <TD align="left">
    Canadian Solar (USA) Inc. (formerly doing business as CSI Solar
    Inc.), which was incorporated in Delaware in June 2007, through
    which we carry out marketing and sales efforts 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Item&#160;4. Information on the Company&#160;&#151; C.
    Organizational Structure&#148; for additional information on our
    corporate structure.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our principal executive offices are 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 (1-905)
    <FONT style="white-space: nowrap">530-2001.</FONT>
    Our principal place of business is at No.&#160;199 Lushan Rd,
    Suzhou New District, Suzhou, Jiangsu 215129, 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: 4%; 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.canadian-solar.com. The information
    contained on our website does not form part of this annual
    report.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Business
    Overview</FONT></U></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Overview</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We design, develop, manufacture and sell solar cell and solar
    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 solar 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. We sell our products under
    our &#147;Canadian Solar&#148; brand name and to OEM customers
    under their brand names. 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: 4%; 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, the U.S., France,
    the Czech Republic, Italy, Korea, Canada and China. We sell our
    standard solar modules to distributors and system integrators,
    and into solar projects. 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: 4%; 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 flexible vertically-integrated business
    model that combines internal manufacturing capacity supplemented
    by direct material purchases and outsourced toll manufacturing
    relationships which we believe provides us with some competitive
    advantages. We believe that this approach allows us to benefit
    from some of the increased margin available to fully
    vertically-integrated solar manufacturers while reducing the
    capital expenditures required relative to a fully vertically
    integrated business model. We also believe that it provides us
    with greater flexibility to respond to short-term demand
    patterns and to take advantage of the availability of low-cost
    outsourced manufacturing capacity in the long term.
    Additionally, it enables 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we have contractually secured our silicon and
    solar cell requirements to support our solar module production
    plan for 2009. We have expanded our in-house manufacturing
    capacity for ingot, wafer, solar cells and solar modules, with
    an annual capacity of 270&#160;MW of solar cells as of the
    fourth quarter of 2008. We intend to increase solar cell
    capacity to 420&#160;MW in 2009. Our ingot capacity as of the
    end of 2008 was 120&#160;&#151; 150&#160;MW, which we plan to
    increase to 250&#160;MW by the end of 2009. Currently, we intend
    to use all of our solar cells in the manufacturing of our own
    solar module products. As of January&#160;1, 2009, we had
    620&#160;MW of combined annual solar module manufacturing
    capacity at our Suzhou, Changshu and Luoyang facilities in China.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We continue to evaluate new technologies, including the use of
    UMgSi to manufacture more cost-effective modules. We entered
    into a research partnership and supply contract with a silicon
    manufacturer to develop a viable and reliable source of UMgSi in
    2007. The following year, in March 2008, we commenced commercial
    production of
    <FONT style="white-space: nowrap">e-Modules,</FONT> a
    cost-effective medium power solar module product using 100%
    UMgSi. We dedicated one of our solar cell lines to upgraded
    metallurgical grade cells in early April 2008 and ramped up to
    full production shortly thereafter. Delivery of
    <FONT style="white-space: nowrap">e-Modules</FONT> to
    our European and U.S.&#160;customers began in May 2008. Our
    current
    <FONT style="white-space: nowrap">e-Module</FONT>
    average conversion efficiency is approximately 15%. The addition
    of <FONT style="white-space: nowrap">e-Modules</FONT>
    to our product offerings provides us with one of the most
    complete crystalline silicon product lines in the industry,
    ranging from medium power, low-cost solar modules to high
    efficiency solar modules.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have also opened a cell efficiency research center to develop
    more efficient cell structures. These include selective emitter,
    N-type conductor and back contact type cells.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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: 4%; 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 have increased from
    $9.7&#160;million in 2004 to $705.0&#160;million in 2008. We
    sold 2.2&#160;MW, 4.1&#160;MW, 14.9&#160;MW, 83.4&#160;MW and
    166.5&#160;MW of our solar module products in 2004, 2005, 2006,
    2007 and 2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently design, develop, manufacture and sell solar cell
    and solar module products, which consist of standard solar
    modules and specialty solar modules and products.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Standard
    Solar Modules</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our standard solar modules are an array of interconnected solar
    cells encased in a weatherproof frame. We produce a wide variety
    of standard solar modules, currently ranging from 0.2W to 300W
    in power and using multi-crystalline, mono-crystalline and UMgSi
    solar cells. These products are built to general specifications
    for a wide range of residential, commercial and industrial solar
    power generation systems. Our standard solar modules are
    designed to be durable under harsh weather conditions and easy
    to transport and install. We sell our standard solar modules
    under our brand name and to OEM customers under their brand
    names. Since March 2002, when we began selling our solar module
    products, we had increased our annual production capacity from
    2&#160;MW to 620&#160;MW by the end of first quarter of 2009,
    from our module manufacturing facilities in Changshu, Suzhou and
    Luoyang. We plan to complete the second phase of the expansion
    for our Changshu facilities in September 2009 and, on
    completion, expect our annual production capacity to reach
    800&#160;MW. The nature of our flexible manufacturing process
    allows us to increase capacity at low cost within a short period
    of time and to ramp up production for increased demand for
    standard solar modules or for new solar module products as
    necessary.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Specialty
    Solar Modules and Products</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We collaborate with our customers to design and manufacture
    specialty solar modules and products based on our
    customers&#146; specifications and requirements. Our specialty
    solar modules and products consists of:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    customized solar modules,&#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;
</TD>
    <TD align="left">
    complete specialty 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our customized solar modules are solar modules that we design
    and manufacture for customers who incorporate them as a
    component of their own products. For example, we have
    manufactured a customized array of six solar modules assembled
    onto a curved canopy for a customer who incorporated it into its
    bus stop shelter products. We design and manufacture our
    complete specialty products, which combine our solar modules
    with various electronic components that we purchase from
    third-party suppliers. For example, we manufacture car battery
    chargers for a major automotive maker. We produce the small
    solar charging panels which are incorporated
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</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">
    into solar garden light products by several companies in China.
    We have produced complete solar street lights used in several
    cities and townships in China. In addition, we have also
    produced security sensors, signaling systems and mobile phone
    chargers in the past.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our specialty solar modules and products have been used
    primarily in the automotive, city infrastructure and outdoor
    lighting sectors. We focus on these and other industries, such
    as the telecommunications sector, that have off-grid
    applications that can be powered by solar power. In the future,
    we intend to increasingly focus on the above sectors. As LED
    technology advancements continue to create higher quality
    lighting with less power at increasingly economical prices, we
    believe that solar power will become a major power source in the
    LED lighting industry.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of our strategy to broaden our products portfolio and
    address a wider cross section of the PV market, we have also
    been actively developing our BIPV product line. Our BIPV
    products have various advantages over standard PV modules,
    including improved aesthetics, direct integration into building
    structures and the ability to be used in a wider range of
    applications including residential and commercial roofing and
    architectural glazing. Our BIPV products and systems have thus
    far been supplied to our BIPV solar glass roofing system project
    in Luoyang and used as part of the facilities for the Olympic
    Games. We believe that the demand for BIPV solutions will
    continue to grow in our key markets, including China, Europe and
    the United States. We will continue to work closely with our
    customers to design and develop specialty solar modules and
    products that meet their specific requirements. We expect sales
    of these products, which typically have higher margins than our
    standard solar modules, to increase as we go forward.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Solar
    Cells</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our first solar cell production line with an annual capacity of
    25&#160;MW was completed in the first quarter of 2007 and our
    second 25&#160;MW production line was completed in the third
    quarter of 2007. Our third and fourth solar cell production
    lines were both finished in November 2007, and our total annual
    solar cell production capacity was 100&#160;MW as of December
    2007. We currently have internal solar cell manufacturing
    capacity of 270&#160;MW, and plan to expand by an additional
    150&#160;MW by the third quarter of 2009, which will increase
    our total annual capacity to 420&#160;MW. During production line
    installation, we apply stringent criteria in vendor selection,
    including requiring them to demonstrate a minimum of two
    successful equipment implementations for other well-known solar
    cell manufacturers in the region. We intend to use substantially
    all of our solar cells in the manufacturing of our own solar
    module products.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our solar cells are made from both mono-crystalline and
    multi-crystalline silicon wafers through multiple manufacturing
    steps, including surface texturization, diffusion,
    plasma-enhanced chemical vapor deposition and surface
    metallization. A functional solar cell generates a flow of
    electricity when exposed to light. The metal on the cell surface
    collects and carries away the current to the external circuitry.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A typical solar cell manufacturing process is illustrated as
    follows:
</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">

    <IMG src="h03379h0337904.gif" alt="(FLOW CHART)"><B><FONT style="font-family: 'Times New Roman', Times">
    </FONT></B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Solar
    Power Development Projects</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also implement solar power development projects, primarily in
    conjunction with government organizations, to provide solar
    power generation in rural areas of China. In conjunction with
    the Canadian International Development Agency, or CIDA, we
    implemented a C$1.8&#160;million &#147;Solar Electrification for
    Western China&#148; project between 2002 and June 2005. As part
    of this project, we installed many demonstration projects and
    conducted three solar power forums in Beijing, Xining and Suzhou.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The PRC government has demonstrated its support for
    environmentally-friendly electricity generation through a
    variety of policy measures, such as integrating BIPV solar power
    systems into the new stadiums and buildings constructed for the
    2008 Summer Olympics in Beijing. We have participated in this
    construction initiative by providing solar modules for some of
    these facilities, which provide a peak power output of 66kW.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, we reached an agreement with the Suzhou New District
    government in Suzhou to begin construction of a PV theme park.
    In addition to providing an example of applied PV power
    generation, the park will serve as a permanent scientific
    educational center for the public. We believe our participation
    in the construction of this park will enhance our market
    reputation in China.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, we successfully completed our first BIPV solar project,
    a BIPV solar glass roof system, in collaboration with Luoyang
    Zhong Gui High Tech Co. Ltd. In early 2009, we also completed
    the installation of a BIPV solar wall in our new office building
    in Luoyang.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Supply
    Chain Management</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business depends on our ability to obtain a stable and
    cost-effective supply of solar wafers and cells. During the
    early years of our existence, there was a shortage of solar
    wafers and cells as a result of a shortage of high-purity
    silicon, due to the rapid growth of and demand for solar power.
    In early 2005, we began managing our supply chain to secure a
    reliable and cost-effective supply of solar cells, which allowed
    us to partially mitigate the effects of the industry-wide
    shortage of high-purity silicon, while reducing margin pressure.
    We secure our supply of solar wafers and cells partially through
    our sourcing of silicon raw materials and toll manufacturing
    arrangements with suppliers of ingots and wafers and partially
    through the direct purchase of solar wafers and cells, in
    addition to producing our own solar cells. Further, we leverage
    the silicon and capital resources of our solar supply chain
    partners, such as independent solar cell producers, to partially
    meet our demand for solar cells at peak demand. While this
    strategy may reduce our gross margin, it has helped us to commit
    less capital in the form of prepayments to polysilicon
    manufacturers compared to other solar module producers of our
    size. Our flexible vertical integration model has also helped us
    to maintain a strong balance sheet during the current global
    economic downtown. We believe our supplier relationships and
    various short and long-term contracts will afford us the volume
    of material required to meet our planned output. The shortage of
    high-purity silicon and solar wafers and cells began to ease
    during the third quarter of 2008, and the industry has
    experienced a relative oversupply of silicon
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</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">
    materials since the fourth quarter of 2008. We are in the
    process of re-negotiating most of our long-term supply contracts
    to obtain more favorable and flexible pricing and other terms.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Silicon
    Raw Materials</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Silicon feedstock, which consists of high-purity silicon and
    reclaimable silicon, is the building block of the entire solar
    power supply chain.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have an agreement with LDK from 2008 to 2010 for specified
    quantities of solar wafers and a toll manufacturing arrangement
    to convert our reclaimed silicon feedstock into wafers.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We continue to purchase from these and other long-term
    suppliers, though the purchase prices for silicon, wafers and
    cells have been mutually adjusted since the end of 2008 to keep
    in line with the market prices for such products. We believe
    that with the current over-supply situation in the market place,
    we should be able to purchase silicon, solar wafers and cells in
    quantities sufficient for our estimated 2009 production
    requirements.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Silicon
    Reclamation Program</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we were one of the first solar companies to
    process reclaimable silicon for the production of solar wafers
    and cells. We take reclaimable silicon from pot scraps, broken
    or unused silicon wafers, and the top and tail discarded
    portions of silicon ingots and process it through our reclaiming
    facilities to recycle it for reuse in the solar supply chain.
    Due to the sharp rise in reclaimable silicon prices globally up
    through the first half of 2008, our silicon reclamation program
    has not been increasing in scale, but has maintained a steady
    production rate. As a result of the oversupply of silicon
    materials that developed in the fourth quarter of 2008, however,
    we expect this aspect of our operation to be less significant in
    the foreseeable future.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Toll
    Manufacturing Arrangements</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also have toll manufacturing arrangements to source silicon
    wafers and solar cells, in addition to our internal solar cell
    manufacturing. Manufacturers of ingots, wafers and cells have
    historically faced over-capacity due to shortages of high-purity
    silicon. Presently, they face overcapacity due to soft
    end-market demand. Through our toll manufacturing arrangements,
    we provide manufacturers with silicon feedstock, which is
    returned in the forms of ingots, wafers and cells. We expect to
    reduce such arrangements in light of the rapid industry-wide
    capacity expansion in 2008 and softening demand beginning in the
    fourth 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Solar Wafers.</I>&#160;&#160;We currently purchase solar
    wafers from local and international suppliers, including LDK,
    ReneSola and Konca.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Solar Cells.</I>&#160;&#160;In addition to internal solar
    cell manufacturing and toll manufacturing arrangements with our
    solar cell suppliers, we currently purchase solar cells from a
    number of international and local suppliers. We have established
    strategic supply relationship with companies such as China
    Sunergy and Neo Solar to ensure a stable supply of cells at
    competitive pricing. We intend to continue purchasing solar cell
    supplies directly and maintaining our smaller scale toll
    manufacturing arrangements. As we expand our business, we will
    seek to diversify our cell supply channel mix to ensure
    flexibility in adapting to future changes in the supply of, and
    demand for, solar cells.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>UMgSi Cells.</I>&#160;&#160;We entered into a research
    partnership and supply contract with a silicon manufacturer to
    develop a viable and reliable source of UMgSi in 2007.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Solar
    Module Manufacturing</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We assemble our solar modules by interconnecting multiple solar
    cells through taping and stringing them into a desired
    electrical configuration. The interconnected cells are laid out,
    laminated in a vacuum, cured by heating and then packaged in a
    protective light-weight anodized aluminum frame. Our solar
    modules are sealed and weatherproofed and are able to withstand
    high levels of ultraviolet radiation, moisture and extreme
    temperatures.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The diagram below illustrates our solar module manufacturing
    process:
</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">
    <IMG src="h03379h0337903.gif" alt="(FLOW CHART)">
</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=456 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="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Laser cutting is only necessary for smaller-sized modules.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We work closely with our customers during the design and
    manufacture of our specialty solar modules and products. For our
    customized solar modules, we collaborate with the customer to
    make certain that our product is compatible for incorporation
    into that customer&#146;s product. For our complete specialty
    products, we work with the customer and typically provide sample
    products to the customer for testing before the product is
    manufactured on a larger scale.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We selectively use automation to enhance the quality and
    consistency of our finished products and to improve efficiency
    in our manufacturing processes. Key equipment in our
    manufacturing process includes automatic laminators, simulators
    and solar cell testers. The current design of our assembly lines
    gives us flexibility to adjust the ratio of manufacturing
    equipment to skilled labor for quality and efficiency control.
    We use manufacturing equipment purchased primarily from Chinese
    solar power equipment suppliers. The location of our
    manufacturing operations in China gives us the advantage of
    proximity to these Chinese manufacturers, who typically sell
    solar power manufacturing equipment at more competitive prices
    compared to similar machinery offered by international solar
    power equipment manufacturers. We source critical testing
    equipment from international manufacturers. The manufacturing of
    solar module products remains a labor intensive process, and we
    leverage China&#146;s competitive labor costs by using labor in
    our manufacturing process when it proves to be more efficient
    and cost-effective than using automated equipment.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may not, however, utilize our production facilities to their
    full capacity. Overall production output depends in part on the
    product mix and the sizes of the solar modules produced by each
    laminator and is affected by the timing of customer orders and
    requested completion dates. Our production output is also
    constrained by the availability of solar cells and silicon raw
    materials and demand for our solar module products. Although
    there is a gap between our production capacity and production
    output, it is important for manufacturers of solar module
    products to maintain additional production capacity to handle
    surges in customer demand and quick changes in the product mix
    and timing of completion demanded by customers. Due to the
    relatively inexpensive cost of solar module manufacturing
    equipment, it is generally cost-efficient to maintain additional
    production capacity.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our manufacturing facilities can be easily reset, allowing us to
    quickly ramp up production for increased orders or new solar
    module products as necessary. We currently operate our
    manufacturing lines in three factories in China and typically
    operate these lines 24&#160;hours a day by rotating shifts of
    employees to operate the lines. We currently produce a higher
    volume of standard solar modules in our factories located in
    Suzhou, Changshu and Luoyang and manufacture most of our
    specialty solar modules and products, which tend to be lower
    volume, at our Changshu facilities. Our employees are trained to
    work on different types of solar module products. This gives us
    the flexibility to quickly increase our manufacturing capacity
    and lines with additional employees in order to meet increases
    in demand.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Quality
    Control and Certifications</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our quality control was set up according to the quality system
    requirements of ISO 9001:2000 and ISO/TS 16949 standards. The
    latter originated from QS 9000 and VDA quality systems and is
    now the world-wide quality system standard for the automotive
    industry. Our quality systems are reviewed and certified by TUV
    Rheinland Group, a leading international service company that
    documents the safety and quality of products, systems and
    services. Our quality control focuses on incoming inspection
    through which we ensure the quality of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</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">
    components and raw materials that we source from third parties
    and includes the use of simulators and solar cell testers. We
    focus on in-process quality control by examining our
    manufacturing processes and on output quality control by
    inspecting finished products and conducting reliability and
    other tests.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have obtained IEC 61215 and IEC61730 (previously TUV
    Class&#160;II safety) European standards for sales in Europe. We
    have also obtained certifications of CAN ORD-UL 1703 and UL 1703
    since March 2007, which allow us to sell products in North
    America.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Markets
    and 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently sell our standard solar modules primarily to
    distributors, system integrators including utilities, and OEM
    companies, as well as to large solar projects. Our distributor
    customers include companies that are exclusive solar power
    distributors and engineering and design firms that include our
    standard solar modules in their system installations. Our system
    integrator customers typically design and sell complete,
    integrated systems that include our standard solar modules along
    with other system components. We sell our solar modules and
    products to various manufacturers who either integrate these
    products into their own products or sell and market them as part
    of their product portfolio. Our standard solar module customers
    include leading solar power distributors and system integrators
    such as Solpower GmbH, Isofoton S.A. and Donauer. Our specialty
    solar modules and products customers include various
    manufacturers who incorporate our customized solar modules in
    their bus stop, road lighting and marine lighting products.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As we expand our manufacturing capacity and enhance our brand
    name, we anticipate developing additional customer relationships
    in other markets and geographic regions to decrease our market
    concentration and dependence. We are aiming to increase our
    sales to customers located in several markets such as Germany,
    Spain, Italy, South Korea, Japan, the Czech Republic, China, the
    United States and Canada. These solar power markets have been
    significantly influenced by past and current government
    subsidies and incentives. While we expect to expand our markets,
    we expect that Germany and other European markets will continue
    to remain our major markets in the near future.
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    <I>Germany.</I>&#160;&#160;The renewable energy laws in Germany
    require electricity transmission grid operators to connect
    various renewable energy sources to their electricity
    transmission grids and to purchase all electricity generated by
    such sources at guaranteed feed-in tariffs. Additional
    regulatory support measures include investment cost subsidies,
    low-interest loans and tax relief to end users of renewable
    energy.
</TD>
</TR>

</TABLE>

<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">
    Germany&#146;s renewable energy policy has had a strong solar
    power focus, which contributed to Germany surpassing Japan in
    2004 as the leading solar power market in terms of annual
    megawatt increase. According to Solarbuzz, the German market
    grew by 39.7% in 2008, from 1,328&#160;MW at the end of 2007 to
    1,855&#160;MW at the end of 2008. Our products are used for
    large-size ground mounted solar power field, commercial rooftop
    and residential rooftop installations. The feed-in tariffs in
    Germany range from &#128;0.319 to &#128;0.410 per watt.
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    <I>Spain.</I>&#160;&#160;According to Solarbuzz, the Spanish
    market grew by 285% to reach 2,463&#160;MW in 2008, surpassing
    Germany as the world&#146;s largest market. In Spain, the actual
    feed-in tariff for solar power energy is fully guaranteed for
    25&#160;years and guaranteed at 80% thereafter. The feed-in
    tariff for applications less than 100 kWh was &#128;0.4404 per
    kWh for the first 25&#160;years of system operation, and
    &#128;0.3523 per kWh thereafter, for systems installed up until
    September 2008. Current feed-in tariffs are between &#128;0.340
    and &#128;0.307 per watt, depending on system size and type.
    Spain was our second largest market after Germany as measured by
    net revenue generated in 2008 but is not expected to remain in
    this position in 2009.
</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;
</TD>
    <TD align="left">
    <I>Italy.</I>&#160;&#160;According to Solarbuzz, the Italian
    solar market grew by 169% to reach 242&#160;MW at the end of
    2008. Current feed-in tariff rates for systems range from
    &#128;0.353 per kWh for larger ground mounted systems to
    &#128;0.49 per kWh for smaller BIPV systems. The Italian market
    saw an enormous boost in large installations in 2007 and 2008,
    according to Solarbuzz, a trend which is expected to continue in
    2009.
</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;
</TD>
    <TD align="left">
    <I>United States.</I>&#160;&#160;There are currently more than
    10&#160;states in the U.S.&#160;that offer significant
    incentives, with California offering the most preferential ones.
    In January 2006, the California Public Utilities Commission
    enacted the California Solar Initiative, a $2.9&#160;billion
    program that subsidizes solar power systems by $2.80 per watt.
    Due to excessive demand, this subsidy has been reduced to $2.50
    per watt. Combined with federal
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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">
    tax credits for solar power usage, the subsidy may account for
    as much as 50% of the cost of a solar power system. The program
    will last from 2007 to 2016 and is expected to dramatically
    increase the use of solar power for on-grid applications in
    California. The program is capped. Incentives in the other US
    states include state renewable energy credits, capital
    subsidies, and in some places such as Vermont, feed-in tariffs.
    Many states and various federal departments are also subject to
    renewable energy portfolio (RPS) standards that mandate minimum
    percentages of renewable energy production by utilities.
    Finally, the US federal government passed several renewable
    energy provisions in the stimulus package, including a 30%
    investment tax credit, accelerated 5&#160;year system
    depreciation and expansion of Department of Energy loan
    guarantees. These provisions were further expanded in 2009 to
    include a cash grant in lieu of the investment tax credit and
    were uncapped with respect to both system size (the previous
    maximum rebate was $2,000) and organization to allow larger
    organizations such as utilities to take advantage of the tax
    credit or cash in-lieu grant for large scale projects. Currently
    the constrained appetite for tax equity will limit the
    effectiveness of some of these provisions such as accelerated
    depreciation.
</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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    <I>China.</I>&#160;&#160;China&#146;s Renewable Energy Law was
    passed in February&#160;28, 2005 and went into effect on
    January&#160;1, 2006. The Renewable Energy Law authorizes the
    relevant authorities to set favorable prices for the purchase of
    on-grid solar power&#160;&#151; generated electricity and
    provides other financial incentives for the development of
    renewable energy projects. In January 2006, China&#146;s
    National Development and Reform Commission further promulgated
    two implementation rules for the Renewable Energy Law. In
    addition, on April&#160;1, 2008, the PRC Energy Conservation Law
    came into effect. Among other objectives, this law encourages
    the utilization and installation of solar power facilities in
    buildings for energy-efficiency purposes.
</TD>
</TR>

</TABLE>

<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">
    On March&#160;23, 2009, China&#146;s Ministry of Finance
    promulgated the Interim Measures for Administration of
    Government Subsidy Funds for Application of Solar Photovoltaic
    Technology in Building Construction, or the Interim Measures, to
    support the development of solar photovoltaic technology in
    China. Local governments are encouraged to issue and implement
    supporting policies. Under these Interim Measures, a subsidy,
    which is set at RMB20 per watt-peak for 2009, will cover solar
    photovoltaic technology integrated into building construction.
    The Interim Measures do not apply to projects completed before
    March&#160;23, 2009, the promulgation date of the Interim
    Measures.
</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">
    China finances its off-grid solar installations through the
    now-completed township program and the current village program.
    The current five-year plan from 2006 to 2010 is targeted to
    provide electricity to 29,000 villages, mainly in western China.
    The Ministry of Housing and Urban-Rural Development (formerly,
    the Ministry of Construction) has recently promulgated
    directives encouraging the development and use of solar power
    energy in both urban and rural areas. Various local authorities
    have also introduced initiatives to encourage the adoption of
    renewable energy including solar power energy. In April 2009, we
    signed an agreement with the City of Suzhou, New District in
    which the latter pledged RMB7.5&#160;million as funding support
    for projects developed by us within the New District.
</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">
    We believe that we will be well-positioned to take advantage of
    growth opportunities in the Chinese solar power energy market,
    which has the potential to become one of the fastest growing
    markets for solar power. Our projects in China include working
    with the government of Suzhou to construct a 300 kW solar power
    system in Suzhou and installing a BIPV solar glass roof system
    in Luoyang.
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    <I>Canada.</I>&#160;&#160;In November of 2006, Canada&#146;s
    largest province, Ontario, introduced a program of subsidies for
    renewable energy projects, including solar energy projects.
    Under that program, a fixed price of C$0.42 per kWh was offered
    for solar power transferred to the electrical grid. That program
    is to be replaced with a program of feed-in tariffs. The
    proposed price for solar power, under the feed-in tariff
    program, ranges from C$0.443 to C$0.80 per kWh depending on the
    system size and type. Contracts under the new program are
    expected to be for terms of 20&#160;years.
</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;
</TD>
    <TD align="left">
    <I>South Korea.</I>&#160;&#160;According to SolarBuzz, the South
    Korean market grew from 50&#160;MW in 2007 to 276&#160;MW in
    2008. The South Korean government has established a number of
    initiatives to enhance self-sufficiency in energy supplies and
    invest in renewable energy systems. Under the Public Institution
    Renewable Obligation Law created in 2004, the government has
    mandated that newly built public facilities exceeding
    3,000&#160;square meters invest at least 5% of their
    construction expenses in renewable energy systems. The current
    feed-in
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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">
    tariff rate for systems ranges from 428 to 646 won per kWh
    depending on system size, while the system limit of 3&#160;MW
    was removed and the national cap was increased from 100 to
    500&#160;MW. In late April, the Korean government announced a
    plan to execute the remaining of the
    <FONT style="white-space: nowrap">feed-in-tariff</FONT>
    program in three years and allocate 50&#160;MW for installations
    and connections in 2009.
</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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    <I>Japan.</I>&#160;&#160;According to Solarbuzz, the Japanese
    market remained flat in 2008 at 230&#160;MW, exhibiting no
    growth. The Japanese government has a long-term energy goal to
    install 4.82GW of PV by 2010, and is a signatory to the Kyoto
    Protocol, requiring it to reduce greenhouse gas emissions by 6%
    from the 1990 baseline level by 2012. Japan currently funds a
    number of key programs supporting domestic PV installations and
    has announced a plan to begin installing PV on federal buildings
    through 2012. It is unlikely Japan will reach its renewable
    energy (including solar) targets, so Japan is considering
    increasing its incentives for PV installations.
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sales
    and Marketing</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Standard
    Solar Modules</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We market and sell our standard solar module products worldwide
    primarily through a direct sales force and via market-focused
    sales agents. We have direct sales personnel or sales agent
    representatives that cover our markets in Europe, North America
    and Asia. Our marketing activities include trade shows,
    conferences, sales training, product launch events, advertising
    and public relations campaign. Working closely with our sales
    and product development teams, our marketing team is also
    responsible for collecting market intelligence and supporting
    our sales team&#146;s lead generation efforts. We have marketing
    staff in the U.S., China, Europe and Korea.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We sell our products primarily under two types of arrangements:
    (1)&#160;sales contracts to systems integrators or distributors
    and (2)&#160;OEM/tolling manufacturing arrangements.
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    <I>Sales contracts.</I>&#160;&#160;In late 2007, we began to
    enter into annual sales
    <FONT style="white-space: nowrap">and/or</FONT>
    distribution agreements with most of our customers. We deliver
    standard solar modules according to a pre-agreed monthly
    schedule. We typically require full payment of the contract
    price by letters of credit or telex money transfers prior to
    shipping. In certain circumstances, we provide short-term credit
    sales ranging from 21 to 45&#160;days. To some customers, we
    provide medium-term credit sales from 60 to 120&#160;days. We
    actively use credit insurance coverage for credit sales.
</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;
</TD>
    <TD align="left">
    <I>OEM/tolling manufacturing arrangements.</I>&#160;&#160;Under
    these arrangements, we either purchase or obtain on a
    consignment basis silicon wafers and cells from customers, and
    then sell solar module products back to the same customers, who
    then sell those products under their own brands. In addition, we
    have been using our own solar cells or cells purchased by us to
    make modules for a limited number of strategic partners, with
    the finished solar module products branded with their labels.
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Specialty
    Solar Modules and Products</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the above efforts, we target our sales and
    marketing efforts of our specialty solar modules and products at
    companies in selected industry sectors, including the
    automotive, telecommunications and LED lighting sectors. As
    standard solar modules increasingly become commoditized and
    technology advancements allow for greater usage of solar power
    in off-grid applications, we will continue to expand our sales
    and marketing focus on our specialty solar modules and products
    and capabilities. Our sales and marketing team works with our
    specialty solar modules and products development team to make
    certain that we take the changing customer preferences and
    demands into account in our product development and that our
    sales and marketing team is able to effectively communicate to
    customers our product development changes and innovations. We
    intend to establish additional relationships in other market
    sectors as the specialty solar modules and products market
    expands.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Solar
    Power Development Projects</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, we began successfully expanding into commercial solar
    power development projects, mainly in China. These include
    commencement of our BIPV solar roof installation in Luoyang and
    a 66 kWp project for the Beijing Olympic Committee. In the early
    part of 2008, we contracted with the Suzhou government to
    develop a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</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">
    300kW solar power system in Suzhou New District. We believe that
    these solar power development projects will generate significant
    goodwill and publicity for us.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Customer
    Support and Service</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We provide customers with after-sales support, including product
    return and warranty services. Our standard solar modules are
    typically sold with a
    <FONT style="white-space: nowrap">two-to-five-year</FONT>
    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% and 20%,
    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.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Competition</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market for solar module products is competitive and
    continually evolving. We compete with international companies
    such as SunPower, First Solar, BP Solar, Sharp Solar and REC and
    China-based companies such as Suntech, Yingli and Trina. Many of
    our competitors are also developing or currently producing
    products based on alternative solar technologies such as thin
    film photovoltaic materials that may ultimately have costs
    similar to, or lower than, our projected costs. For example,
    solar modules produced using thin film materials, such as
    amorphous silicon, cadmium telluride and CIGS technology, are
    generally less efficient, with conversion efficiencies ranging
    from 5% to 10.8% according to Solarbuzz, but require
    significantly less or no silicon to produce than crystalline
    silicon solar modules, such as our products, and are less
    susceptible to increases in silicon costs. Some of our
    competitors have also become vertically integrated, from
    upstream polysilicon manufacturing to solar system integration.
    We may also face competition from semiconductor manufacturers,
    several of which have already announced their intention to start
    production of solar modules. In addition, the solar power market
    in general competes with other sources of renewable and
    alternative energy and conventional power generation. We believe
    that the key competitive factors in the market for solar module
    products include:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    customer relationships and distribution channels;
</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;
</TD>
    <TD align="left">
    brand name and reputation;
</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;
</TD>
    <TD align="left">
    power efficiency and performance;
</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;
</TD>
    <TD align="left">
    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;
</TD>
    <TD align="left">
    supply chain management;
</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;
</TD>
    <TD align="left">
    manufacturing efficiency;&#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;
</TD>
    <TD align="left">
    aesthetic appearance of solar module 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the immediate future, we believe that the ability to compete
    in our industry will depend on the ability to develop and
    maintain a strong brand name based on high quality products and
    strategic relationships with downstream customers. It will also
    depend on our ability to effectively manage our cash flow and
    balance sheet to maintain our financial health and relationships
    with the financial institutions that fund solar projects.
    Consolidation of the solar industry is already occurring and is
    expected to continue in the near future. We believe that such
    consolidation will benefit our company in the long term. We
    believe that the key to competing successfully will be sales and
    marketing activities. We believe that the strong relationships
    that we are building with both customers and suppliers will
    support us in that new competitive environment.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Insurance</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain property insurance policies with reputable insurance
    companies to cover our equipment, facilities, buildings and
    their improvements, office furniture and inventory. These
    insurance policies cover losses due to fire, floods and other
    natural disasters. To keep up with the pace of our rapid sales
    growth and facilities expansions, we substantially increased the
    level of our insurance coverage over properties, general
    commercial and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</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">
    product liabilities in 2008. We have also been actively working
    with China Export Credit Insurance Company (Sinosure) since
    early 2008. Such credit insurance covers the collections risk of
    our account receivables for customers with Sinosure approved
    credit limits. We also maintain key-man health and life
    insurance to cover our founder, chairman, president and chief
    executive officer, Dr.&#160;Shawn Qu, our chief financial
    officer and director, Arthur Chien and three other officers. We
    have maintained cargo transportation insurance relating to
    marine, air and inland transit risks for the export of our
    products, as well as insurance domestic transportation of
    materials and products. We do not maintain business interruption
    insurance. We consider our overall insurance coverage to be
    adequate. However, significant damages to any of our
    manufacturing facilities, whether as a result of fire or other
    causes, could have a material adverse effect on our results of
    operations.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Environmental
    Matters</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except for the circumstances disclosed in the &#147;Item&#160;3.
    Key Information&#160;&#151; D. Risk Factors&#160;&#151; Risks
    Related to Doing Business in China&#160;&#151; We may face
    penalties for failing to comply with certain PRC legal
    requirements,&#148; we believe we have obtained all
    environmental permits necessary to conduct the business
    currently carried on by us at our existing manufacturing
    facilities. We have conducted environmental studies in
    conjunction with our solar power development projects to assess
    and reduce the environmental impact of our facilities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As we have expanded our 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
    have expanded our internal solar components production capacity,
    our risk of facility incidents with a potential environmental
    impact has increased.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our products must comply with the applicable environmental
    regulations where they are installed. We make efforts to ensure
    that our products 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are subject to regulation and periodic monitoring
    by local environmental protection authorities. If we fail to
    comply with present or future environmental laws and
    regulations, we could be subject to fines, suspension of
    production or a cessation of operations.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Government
    Regulation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section sets forth a summary of the most significant
    regulations or requirements that affect our business activities
    in China or our shareholders&#146; right to receive dividends
    and other distributions from us.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Renewable
    Energy Law and Other Government Directives</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2005, China enacted its Renewable Energy Law, which
    became effective on January&#160;1, 2006. The Renewable Energy
    Law sets forth policies to encourage the development and use of
    solar energy and other non-fossil energy. The renewable energy
    law sets forth the national policy to encourage and support the
    use of solar and other renewable energy and the use of on-grid
    generation. It also authorizes the relevant pricing authorities
    to set favorable prices for the purchase of electricity
    generated by solar and other renewable power generation systems.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The law also sets forth the national policy to encourage the
    installation and use of solar energy water-heating system, solar
    energy heating and cooling system, solar photovoltaic system and
    other solar energy utilization systems. It also provides
    financial incentives, such as national funding, preferential
    loans and tax preferences for the development of renewable
    energy projects. In January 2006, China&#146;s National
    Development and Reform Commission promulgated two implementation
    directives of the Renewable Energy Law. These directives set
    forth specific measures in setting prices for electricity
    generated by solar and other renewal power generation systems
    and in sharing additional expenses occurred. The directives
    further allocate the administrative and supervisory authorities
    among different government agencies at the national and
    provincial levels and stipulate responsibilities of electricity
    grid companies and power generation companies with respect to
    the implementation of the renewable energy law.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2005, China&#146;s National Development and Reform
    Commission promulgated the Renewable Energy Industry Development
    Guidance Catalogue, where solar power figured prominently. In
    January 2006, China&#146;s National Development and Reform
    Commission promulgated an implementation directive for the
    renewable energy power generation industry. This directive sets
    forth specific measures for setting the price of electricity
    generated by solar and other renewable power generation systems
    and in sharing the costs incurred. The directive also allocates
    administrative and supervisory authority among different
    government agencies at the national and provincial levels and
    stipulates the responsibilities of electricity grid companies
    and power generation companies with respect to the
    implementation of the renewable energy law.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;31, 2007, China&#146;s National Development and
    Reform Commission promulgated the Medium and Long-Term
    Development Plan for the Renewable Energy Industry. This plan
    sets forth national policy to provide financial allowance and
    preferential tax regulations for the renewable energy industry.
    A similar demonstration of PRC government commitment to
    renewable energy is also stipulated in the Eleventh Five-Year
    Plan for Renewable Energy Development, which was promulgated by
    China&#146;s National Development and Reform Commission in March
    2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    China&#146;s Ministry of Housing and Urban-Rural Development
    (formerly, the Ministry of Construction) also issued a directive
    in June 2005, which seeks to expand the use of solar energy in
    residential and commercial buildings and encourages the
    increased application of solar energy in different townships. In
    addition, China&#146;s State Council promulgated a directive in
    July 2005, which sets forth specific measures to conserve energy
    resources. In addition, on April&#160;1, 2008, the PRC Energy
    Conservation Law came into effect. Among other objectives, this
    law encourages the utilization and installation of solar power
    facilities to buildings for energy-efficiency purposes.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;23, 2009, China&#146;s Ministry of Finance
    promulgated the Interim Measures for Administration of
    Government Subsidy Funds for Application of Solar Photovoltaic
    Technology in Building Construction, or the Interim Measures, to
    support the development of solar photovoltaic technology in
    China. Local governments are encouraged to issue and implement
    supporting policies. Under these Interim Measures, a subsidy,
    which is set at RMB20 per Watt-peak for 2009, will cover solar
    photovoltaic technology integrated into building construction.
    The Interim Measures do not apply to projects completed before
    March&#160;23, 2009, the promulgation date of the Interim
    Measures.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Environmental
    Regulations</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As we expand our ingot, solar wafer and solar cell
    manufacturing, we begin 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. We are subject to a variety of governmental
    regulations related to the storage, use and disposal of
    hazardous materials. The major environmental regulations
    applicable to us include the Environmental Protection Law of the
    PRC, the PRC Law on the Prevention and Control of Noise
    Pollution, the PRC Law on the Prevention and Control of Air
    Pollution, the PRC Law on the Prevention and Control of Water
    Pollution, the PRC Law on the Prevention and Control of Solid
    Waste Pollution, the PRC Law on Evaluation of Environmental
    Affects and the Regulations on the Administration of
    Construction Project Environmental Protection.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further, some of our PRC subsidiaries are located in Suzhou,
    China, which is adjacent to Taihu Lake, a nationally renowned
    and protected body of water. As such, production at these
    subsidiaries is subject to the Regulation of Jiangsu Province on
    Preventing Water Pollution in Taihu Lake, which became effective
    on June&#160;5, 2008, and the Implementation Plan of Jiangsu
    Province on Comprehensive Treatment of Water Environment in
    Taihu Lake Basin, which was promulgated on February&#160;25,
    2009. As a result of these two new regulations, the
    environmental protection requirements imposed on nearby
    manufacturing projects, especially for new projects, have
    increased noticeably, and Jiangsu Province has stopped approving
    construction of new manufacturing projects that stand to
    increase the amount of nitrogen and phosphor released into Taihu
    Lake.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Restriction
    on Foreign Businesses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal regulation governing foreign ownership of solar
    power businesses in the PRC is the Foreign Investment Industrial
    Guidance Catalogue. Under the current catalogue, which was
    amended in 2007 and become
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</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">
    effective on December&#160;1, 2007, the solar power business is
    classified as an &#147;encouraged foreign investment
    industry.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While the 2004 catalogue provided a narrow scope for the solar
    power business, consisting of construction and operation of
    solar power stations, the scope provided by the current
    catalogue includes the production of solar cell manufacturing
    machines; the production of solar air condition, heating and
    drying systems; the manufacture of solar cells as well as the
    construction and operation of solar power stations.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Income
    and VAT Taxes</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PRC enterprise income tax is calculated based on taxable income
    determined under PRC accounting principles. Our major operating
    subsidiaries, namely CSI Solartronics, CSI Manufacturing, CSI
    Cells, CSI Luoyang, and CSI Advanced, are governed by the new
    EIT Law, which became effective from January&#160;1, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the new EIT Law, both foreign-invested enterprises and
    domestic enterprises are subject to a uniform enterprise income
    tax rate of 25%. There is a transition period for enterprises
    which had been given preferential tax treatment under the
    previous tax law. Enterprises that were subject to an enterprise
    income tax rate lower than 25% will see the new uniform
    enterprise income tax rate of 25% phased in over a five-year
    period from the effective date of the new EIT Law. Enterprises
    that were entitled to exemptions or reductions from the standard
    income tax rate for a fixed term may continue to enjoy such
    treatment until the fixed term expires, subject to certain
    limitations. At the same time, the new EIT Law provides for
    preferential tax treatment for certain categories of industries
    and projects that are strongly supported and encouraged by the
    state, and enterprises classified as &#147;new and high
    technology enterprises strongly supported by the state&#148; are
    entitled to a 15% enterprise income tax rate.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our subsidiary CSI Solartronics has been recognized as a
    &#147;new and high technology enterprise&#148; and thus is
    entitled to a favorable 15% enterprise income tax rate, subject
    to renewal every three years. However, CSI Manufacturing
    currently enjoys a reduced enterprise income tax rate of 12.5%
    only until the end of 2009, when its tax holiday expires. CSI
    Cell and CSI Luoyang are also subject to a reduced enterprise
    income tax rate of 12.5% until the end of 2011, when their tax
    holidays expire. CSI Advanced is exempt from tax this year and
    will be subject to an EIT rate of 12.5% until the end of 2012,
    at which time its tax holiday will expire as well. As the
    preferential tax benefits currently enjoyed by our PRC
    subsidiaries expire, their effective tax rates will increase
    significantly.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The new EIT Law also provides that enterprises established
    outside China whose &#147;de facto management bodies&#148; are
    located in China are considered PRC tax residents and will
    generally be subject to the uniform 25% enterprise income tax
    rate as to their global income. Under the implementation
    regulations, the term &#147;de facto management bodies&#148; is
    defined as the bodies that have, in substance, overall
    management control over such aspects as the production and
    business, personnel, accounts and properties of an enterprise.
    Currently there are no detailed rules or precedents governing
    the procedures and specific criteria for determining a
    company&#146;s de facto management bodies, which are applicable
    to us. As a substantial number of the members of our management
    team are located in China, we may be considered as a PRC tax
    resident under the new EIT Law and, therefore, subject to the
    uniform 25% enterprise income tax rate as to our global income.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the new EIT Law and implementing regulations issued by the
    State Council, PRC withholding tax at the rate of 10% is
    applicable to interest and dividends payable to investors that
    are not &#147;resident enterprises&#148; in the PRC, to the
    extent such interest or dividends have their sources within the
    PRC. If our Canadian parent entity is deemed to be a PRC tax
    resident under the new EIT Law based on the location of our de
    facto management bodies, dividends distributed from our PRC
    subsidiaries to our Canadian parent entity could be exempt from
    Chinese dividend withholding tax. However, in that case
    dividends from us to our shareholders may be regarded as
    China-sourced income and, consequently, be subject to Chinese
    withholding tax at 10%, or at a lower treaty rate if one
    applies. Similarly, if we are considered a PRC tax resident, any
    gain realized by our shareholders from the transfer of our
    common shares is also subject to 10% PRC withholding income tax
    if such gain is regarded as income derived from sources within
    the PRC. It is unclear whether the dividends we pay with respect
    to our common shares or gains you may realize from the transfer
    of our common shares would be treated as income derived from
    sources within the PRC and subject to PRC tax.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to a November&#160;5, 2008 amendment to the Provisional
    Regulation of the PRC on Value Added Tax issued by the PRC State
    Council, all entities and individuals that are engaged in the
    sale of goods, the provision of repairs and replacement services
    and the importation of goods in China are required to pay value
    added tax, or VAT. Gross proceeds from sales and importation of
    goods and provision of services are generally subject to VAT at
    a rate of 17%, with exceptions for certain categories of goods
    that are taxed at a rate of 13%. When exporting goods, the
    exporter is entitled to a refund of a portion or all of the VAT
    that it has already paid or borne.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;15, 2008, the Ministry of Finance and the State
    Administration of Taxation jointly issued implementation rules
    for the VAT effective from January&#160;1, 2009. Under the new
    rules, fixed assets (mainly including equipment and
    manufacturing facilities) are now eligible for credit for input
    VAT. Previously, the input VAT on fixed assets purchases had not
    been deductible from the current period&#146;s output VAT
    derived from the sales of goods, but had to be included in the
    cost of the assets. The new rule permits this deduction except
    in the case of equipment purchased for non-taxable projects or
    tax-exempted projects where the deduction of input VAT is not
    allowed. As a result of the new VAT rules, our PRC subsidiaries
    may enjoy this benefit for future input VAT credit on our
    capital expenditure.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the former rules, equipment imported for qualified
    projects had been entitled to an import VAT exemption and
    domestic equipment purchased for qualified projects had been
    entitled to a VAT refund. However, such exemption and refund
    were both eliminated as of January&#160;1, 2009.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Foreign
    Currency Exchange</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Foreign currency exchange regulation in China is primarily
    governed by the following rules:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    the Foreign Currency Administration Rules (1996), as
    amended;&#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;
</TD>
    <TD align="left">
    the Settlement, Sale and Payment of Foreign Exchange
    Administration Rules (1996), or the Settlement Rules.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Currently, the Renminbi is convertible for current account
    items, including the distribution of dividends, interest
    payments, trade and service-related foreign exchange
    transactions. Conversion of Renminbi for most capital account
    items, such as direct investment, security investment and
    repatriation of investment, however, is still subject to the
    approval of the PRC State Administration of Foreign Exchange, or
    SAFE.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Settlement Rules, foreign-invested enterprises may
    buy, sell
    <FONT style="white-space: nowrap">and/or</FONT> remit
    foreign currencies only at those banks authorized to conduct
    foreign exchange business after providing valid commercial
    documents and, in the case of most capital account item
    transactions, obtaining approval from the SAFE. Capital
    investments by foreign-invested enterprises outside of China are
    also subject to limitations, which include approvals by the
    Ministry of Commerce, the SAFE and the State Reform and
    Development Commission.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Dividend
    Distribution</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal regulations governing distribution of dividends
    paid by wholly foreign owned enterprises include:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    Wholly Foreign Owned Enterprise Law (1986), as amended;&#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;
</TD>
    <TD align="left">
    Wholly Foreign Owned Enterprise Law Implementation Rules (1990),
    as amended.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under these regulations, foreign-invested enterprises in China
    may pay dividends only out of their accumulated profits, if any,
    determined in accordance with PRC accounting standards and
    regulations. In addition, a wholly foreign owned enterprise in
    China is required to set aside at least 10% 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% of its registered capital. These reserves are not
    distributable as cash dividends. The board of directors of a
    foreign-invested enterprise has the discretion to allocate a
    portion of its after-tax profits to staff welfare and bonus
    funds, which may not be distributed to equity owners except in
    the event of liquidation.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Organizational
    Structure</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following diagram illustrates our company&#146;s
    organizational structure, and the place of formation, ownership
    interest, affiliation and the operation focus of each of our
    subsidiaries.
</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">
    <IMG src="h03379h0337901.gif" alt="(FLOW CHART)">
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Item&#160;4. Information on the Company&#160;&#151; A.
    History and Development of the Company&#148; for additional
    information on our corporate structure.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">D.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Property,
    Plant and Equipment</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of our properties, including
    information on our manufacturing facilities and office buildings:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    CSI Manufacturing rents 22,908&#160;square meters for
    manufacturing facilities in Suzhou in the Suzhou Export
    Processing Zone, including 14,238&#160;square meters in Building
    A6 and 8,670&#160;square meters in Building B10, under two
    leases effective from October&#160;1, 2007 to September&#160;30,
    2010. We have the right to renew the leases with six
    months&#146; prior written notice if the terms we offer are not
    less favorable than terms offered by other prospective tenants.
</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;
</TD>
    <TD align="left">
    CSI Technologies rents 2,000&#160;square meters for
    manufacturing facilities and offices from CSI Advanced under a
    lease effective from December&#160;1, 2008 to November&#160;30,
    2009.
</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;
</TD>
    <TD align="left">
    CSI Advanced rents approximately 13,889&#160;square meters for
    manufacturing facilities in Changshu under a lease effective
    from June&#160;1, 2008 to May&#160;31, 2009.
</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;
</TD>
    <TD align="left">
    CSI Solartronics rents 1,955&#160;square meters for
    manufacturing facilities in Suzhou under a lease effective from
    December&#160;12, 2008 to December&#160;11, 2009.
</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;
</TD>
    <TD align="left">
    CSI Luoyang holds the land use rights certificate for a piece of
    land in Luoyang of approximately 35,345&#160;square meters in
    size (Phase I), on which we have constructed a manufacturing
    facility for module manufacturing and an office building. The
    floor area of all workshops and office buildings in Phase I is
    approximately 6,761&#160;square meters, with the housing
    ownership certificate granted in June 2008. In 2008, CSI Luoyang
    obtained the land use rights for an additional adjacent piece of
    land totaling approximately 79,685&#160;square meters (Phase
    II), on which we are currently constructing wafer manufacturing
    facilities. The floor area for Phase&#160;II is
    30,071&#160;square meters, with the housing ownership
    certificate anticipated after successful testing upon its full
    completion.
</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;
</TD>
    <TD align="left">
    CSI Cells holds the land use rights certificate for a piece of
    land in Suzhou of approximately 65,661&#160;square meters in
    size. We completed the construction of our first solar cell
    manufacturing facilities in the first quarter of 2007. The Phase
    I manufacturing facility has a 14,093&#160;square meter workshop
    and office building. Phase&#160;II cell manufacturing facilities
    with 28,917&#160;square meters of workshops will be completed in
    2009, with the housing ownership certificate anticipated upon
    passing the inspection required by law.
</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;
</TD>
    <TD align="left">
    CSI Advanced holds the land use rights certificate for a piece
    of land in Changshu of approximately 40,000&#160;square meters
    in size, on which we have built a module manufacturing facility
    of approximately
</TD>
</TR>

</TABLE>

<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 -->

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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">
    23,479&#160;square meters. Production in this facility began in
    April 2008. The land use rights certificate of CSI Advanced
    involves a total land area of 40,000&#160;square meters.
</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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    CSI Power holds the land use rights certificate for a piece of
    land in Changshu of 180,000&#160;square meters, on which we
    built two module manufacturing facilities, three warehouses, and
    some other buildings of approximately 62,093&#160;square meters.
    Production in this facility began in August 2008 and the central
    warehouse construction will be completed in late 2009. The land
    use rights certificate of CSI Power Phase I involves a total
    land area of 78,320&#160;square meters. CSI Power&#146;s further
    expansion of Phase&#160;II and&#160;III manufacturing facilities
    is still under design and planning stage for future needs.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe our current and planned facilities will meet our
    future needs and are consistent with our business plans.
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;4A.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='106'></A><B><I><FONT style="font-family: 'Times New Roman', Times">UNRESOLVED
    STAFF COMMENTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None.
</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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;5.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='107'></A><B><I><FONT style="font-family: 'Times New Roman', Times">OPERATING
    AND FINANCIAL REVIEW AND PROSPECTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should read the following discussion and analysis of our
    financial condition and results of operations in conjunction
    with our consolidated financial statements and the related notes
    included elsewhere in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
    This discussion may contain forward-looking statements based
    upon current expectations that involve risks and uncertainties.
    Our actual results may differ materially from those anticipated
    in these forward-looking statements as a result of various
    factors, including those set forth under &#147;Item&#160;3. Key
    Information&#160;&#151; D. Risk Factors&#148; or in other parts
    of this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT></I>
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Operating
    Results</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The most significant factors that affect our financial
    performance and results of operations are:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    government subsidies and availability of financing for solar
    projects;
</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;
</TD>
    <TD align="left">
    industry and seasonal demand;
</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;
</TD>
    <TD align="left">
    product pricing;
</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;
</TD>
    <TD align="left">
    price of solar cells and wafers and silicon raw
    materials;&#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;
</TD>
    <TD align="left">
    foreign exchange.
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Government
    Subsidies and Availability of Financing for Solar
    Projects</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the near-term growth of the market for on-grid
    applications depends in large part on the availability and size
    of government subsidies and economic incentives and financing
    for solar projects. The cost of constructing and operating a
    solar power system substantially exceeds the cost of purchasing
    power provided by the electric utility grid in many locations at
    the present time. As a result, federal, state and local
    governmental bodies in many countries, most notably Germany,
    Spain, Italy, South Korea, the United States, Japan and China,
    have provided subsidies and economic incentives to reduce
    dependency on conventional sources of energy. These have come in
    the form of rebates, tax credits, loan guarantees and other
    incentives to end users, distributors, system integrators and
    manufacturers of solar power products, to promote the use of
    solar energy in on-grid and, to a lesser extent, off-grid
    applications. The demand for our solar module products, in
    particular our standard solar modules, is affected significantly
    by these government subsidies and economic incentives. See
    &#147;Item&#160;3. Key Information&#160;&#151; D. Risk
    Factors&#160;&#151; Risks Related to Our Company and Our
    Industry&#160;&#151; Revision, reduction or elimination of
    government subsidies and economic incentives for solar power
    could cause demand for our products and our revenues, profits
    and margins to decline.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, the current global economic crisis and limited
    availability of credit and liquidity could adversely impact our
    customers&#146; ability to finance the purchase of our products,
    or to construct solar power projects, and we may also face
    collection problems with customers facing credit challenges
    either internally or in the event their own
</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 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    customers or banking counterparties default, which would
    adversely affect our business and results of operations. See
    &#147;Item&#160;3. Key Information&#160;&#151; D. Risk
    Factors&#160;&#151; Risks Related to Our Company and Our
    Industry&#160;&#151; The execution of our growth strategy is
    dependent upon the continued availability of third-party
    financing arrangements for our customers, which is affected by
    general economic conditions. Tight credit markets could depress
    demand for solar products, hamper our expansion and materially
    affect our results of operations.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the past, we have been able to partially mitigate collection
    risk on accounts receivables through trade financing, accounts
    receivable insurance or security from the customer in the form
    of letters of credit or liens against project assets. There is
    no guarantee that we will be able to use any of these mechanisms
    in all cases. For example, deterioration of the credit markets
    could render our customers and their accounts ineligible for
    receivables insurance. In the event that our customers cancel
    their orders or are unable to obtain financing, 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Industry
    and Seasonal Demand</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business and revenue growth depends on demand for solar
    power. Although solar power technology has been used for several
    decades, the solar power market has grown significantly in the
    past several years. See &#147;Item&#160;4. Information on the
    Company&#160;&#151; B. Business Overview&#148; for a more
    detailed discussion on the factors driving the growth of the
    solar power industry and the challenges that it faces. In
    addition, industry demand is affected by seasonality. Demand
    tends to be lower in the winter, primarily because of adverse
    weather conditions, particularly in Germany, one of our key
    markets, which complicate the installation of solar power
    systems. For example, our sales to Germany slowed significantly
    in the fourth quarter of 2008 and the first quarter of 2009 due
    to such changes in seasonal demands, together with inventory
    clearing efforts by some solar module producers. However, the
    demand from other key markets may offset seasonal fluctuations
    from time to time. For instance, high fourth quarter 2007 and
    first quarter 2008 demand from Spain, a warm weather market,
    allowed us to achieve a record sales quarter, despite a slowdown
    in German sales. As governments around the world continue to
    approve subsidies that encourage the use of solar energy, we
    expect to be able to take advantage of the diversity of global
    markets to mitigate some of the effects of seasonality on our
    business results 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Item&#160;3. Key Information&#160;&#151; D. Risk
    Factors&#160;&#151; Risks Related to Our Company and Our
    Industry&#160;&#151; 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.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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
    Pricing</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We began selling our solar module products in March 2002 and all
    of our net revenues in 2002 and 2003 were generated from sales
    of specialty solar modules and products. We did not begin
    selling standard solar modules until 2004. By the end of 2004,
    the sale of standard solar modules represented 72.5% of our net
    revenues. In 2005 and 2006, that percentage increased to 76.9%
    and 96.8%, respectively, excluding silicon materials sales. In
    2007, approximately 96.0% of our solar module product net
    revenues consisted of standard solar module sales. The remainder
    was primarily generated from sales of silicon materials. In
    2008, approximately 98.2% of our solar module product net
    revenues consisted of standard solar module sales, with the
    remainder from sales of silicon materials.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our standard solar modules are priced based on the number of
    watts of electricity that they can generate. The actual price
    per watt is affected by overall demand in the solar power
    industry. We price our standard solar modules based on the
    prevailing market price at the time we enter into sales
    contracts with our customers, taking into account the size of
    the contract, the strength and history of our relationship with
    each customer and our solar wafers, cells and silicon raw
    materials costs. During the first few years of our existence,
    the average selling prices for standard solar modules rose
    <FONT style="white-space: nowrap">year-to-year</FONT>
    across the industry, primarily because of high demand.
    Correspondingly, the average selling price of our standard solar
    module products increased from $3.62 per watt in 2004 to $3.92
    per watt in 2005 and $3.97 per watt in 2006, before dropping
    slightly to $3.75 per watt in 2007 due to temporary industry
    over-supply. Following a peak in the third quarter of 2008, the
    industry average selling prices of solar modules
</DIV>

<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 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    declined sharply beginning from the fourth quarter of 2008, as
    market demand declined sharply and competition increased due to
    the worldwide credit crisis, greater maturity of markets and
    increased manufacturing output. The average selling price of our
    standard solar module products was $3.30 per watt in the fourth
    quarter of 2008.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Price
    of Solar Cells and Wafers and Silicon Raw
    Materials</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: 4%; 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 frame, and products that
    use solar modules. Solar cells are the most important component
    for making solar modules. Our solar cells are currently made
    from mono-crystalline wafers and multi-crystalline silicon
    wafers through multiple manufacturing steps, including surface
    texturization, diffusion, plasma-enhanced chemical vapor
    deposition and surface metallization. Solar wafers are the most
    important material for making solar cells. There is presently an
    oversupply of solar cells and wafers as a result of increased
    capacity and decreased demand in the solar market. This exposes
    us to inventory write-downs. We have been renegotiating our
    supply agreements in line with market pricing for raw materials,
    and we wrote down inventory in the fourth quarter of 2008. But
    if we are unable, on an ongoing basis, to continue to procure
    silicon, wafers and cells at prices that decline in line with
    panel pricing, our revenues and margins could be adversely
    impacted, either due to relatively high costs compared to
    competitors, further write-downs of inventory, or both, and our
    market share could decline if competitors are able to offer
    better pricing than we are.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our flexible vertical integration strategy allows us to some
    extent to fall back on our internal
    <FONT style="white-space: nowrap">ingot-to-wafer</FONT>
    and
    <FONT style="white-space: nowrap">wafer-to-cell</FONT>
    manufacturing capacity in order to exert greater stability and
    control over costs of wafers and cells. This strategy can help
    to preserve our margins in a declining price environment.
    Currently, we secure a large percentage of our supply of solar
    wafers through purchasing, including tolling arrangements. We
    also purchase limited quantities of solar cells directly from
    our suppliers.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that our current silicon raw material supply
    agreements combined with internal capacity and outsourcing
    arrangements will enable us to secure or manufacture solar cells
    and solar wafers sufficient for all of our estimated 2009
    production output. We may still enter into long-term supply
    contracts and we plan to expand our in-house solar cell and
    wafer manufacturing capability. In the event of a future supply
    disruption or shortfall in silicon production, we cannot assure
    you that we will be able to secure sufficient quantities of
    solar wafers and cells and silicon raw materials to increase our
    revenues as planned.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Suppliers of solar wafers and cells and silicon raw materials
    have typically required customers 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 and cells
    and silicon raw materials and the time that our customers make
    prepayments to us. Although for the foreseeable future our
    supply contracts should not have prepayment terms, the purchase
    of solar wafers and cells and silicon raw materials through toll
    manufacturing arrangements has required, and will continue to
    require, us to make significant commitments of working capital
    beyond that generated from our cash flows from operations to
    support our estimated production output.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Foreign
    Exchange</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We pay most of our expenses in Renminbi, which since July 2008
    has fluctuated in tandem with the U.S.&#160;dollar, and in
    U.S.&#160;dollars. However, since 2007, most of our sales have
    been denominated in Euros. This creates a foreign exchange risk,
    which can impact our revenues and margins, in the event that the
    Euro depreciates against the U.S.&#160;dollar, as occurred in
    the second half of 2008. In 2008, we began to hedge our Euro
    exposure against the U.S.&#160;dollar using single put and call
    collars and forward contracts. We were able to mitigate a
    substantial portion, but not all, of our exchange rate losses
    for 2008 by hedging. We will continue to hedge our Euro exposure
    against the U.S.&#160;dollar in order to increase our foreign
    exchange visibility and limit losses. Also we expect our
    U.S.&#160;dollar-denominated sales to increase in 2009.
    Increasingly, however, banks are requiring collateral in order
    to enter into hedging contracts and expenses associated with
    purchasing currency options have increased. Coupled with
    increased volatility in the Euro-U.S.&#160;dollar exchange rate
    and decreased sales visibility due to the current market
    environment, the effectiveness of our hedging program may be
    compromised with respect to cost effectiveness, cash management,
    exchange rate visibility and downside protection.
</DIV>

<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 -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Overview
    of Financial 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate our business using a variety of key financial
    measures.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Net
    Revenues</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We generate revenues primarily from the sale of solar module
    products, consisting of standard solar module and specialty
    solar modules and products. Solar module products accounted for
    87.6%, 96.0% and 98.2% of our net revenues in 2006, 2007 and
    2008, respectively. Since 2007, the resale of silicon has
    accounted for a small percentage of our total revenue because
    the competition to obtain silicon materials was much greater
    than in 2006. Since the fourth quarter of 2008, the solar
    industry has experienced an oversupply of silicon, and we
    believe that revenues from the resale of silicon materials in
    2009 will be very small. In 2008, we had very limited
    <FONT style="white-space: nowrap">wafer-to-module</FONT>
    and
    <FONT style="white-space: nowrap">cell-to-module</FONT>
    tolling businesses, which entailed customers supplying solar
    wafers
    <FONT style="white-space: nowrap">and/or</FONT> solar
    cells to us, which we then fashioned into solar modules in our
    facilities while charging a tolling fee to cover additional
    materials costs and generate revenue. Going forward, we believe
    that revenues from our tolling business will be insignificant
    compared to our overall net revenues. We are looking into
    providing those of our customers who sell solar systems with
    value-added services, including project finance, engineering,
    procurement, and construction contracting, and investment
    activities. We believe this will help to improve our solar
    module market penetration in the future. The main factors
    affecting our net revenues include average selling prices per
    watt and unit volume shipped, which depend on product supply and
    demand. Our net revenues are net of business tax, value-added
    tax and returns and exchanges.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A small number of customers have historically accounted for a
    major portion of our net revenues. In 2006, 2007 and 2008, our
    top five customers during those periods collectively accounted
    for approximately 53.5%, 78.8% and 52.6%, respectively, of our
    net revenues, and sales to our largest customer in those years
    accounted for 14.3%, 21.1% and 14.7% respectively. Four of our
    largest customers in 2007 continue to be four of our five
    largest customers in 2008. Changes in our product mix and
    strategic marketing decisions have resulted in changes in our
    market concentration from year to year. The following table sets
    forth, for the periods indicated, certain information relating
    to our total net revenues derived from our customers categorized
    by their geographic location for the periods indicated:
</DIV>

<DIV style="margin-top: 3pt; 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="48%">&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="5%" 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="2%" 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="6%" 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="2%" 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="6%" 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="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 -->
</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="22" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December 31,</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="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</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>Total Net<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">
    <B>Total Net<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">
    <B>Total Net<BR>
    </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">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Region</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Revenues</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Revenues</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Revenues</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>%</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="22" align="center" valign="bottom">
    <B>(In thousands of US$, except for 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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Europe
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,981
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76.2
</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">
    286,588
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94.7
</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">
    631,147
</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">
    89.5
</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">
    Asia
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,200
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,571
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.9
</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">
    America
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,288
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</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: -10pt; margin-left: 10pt">
    Total net revenues
</DIV>
</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">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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">
    302,798
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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">
    705,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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>
</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=456 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="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    $8.3&#160;million of this amount was generated from a one-time
    silicon materials sale that took place in the fourth quarter of
    2006.</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Cost of
    Revenues</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our cost of revenues consists primarily of the costs of:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    solar grade silicon materials;
</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;
</TD>
    <TD align="left">
    solar wafers;
</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;
</TD>
    <TD align="left">
    materials used in solar cell production, such as metallic pastes;
</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;
</TD>
    <TD align="left">
    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;
</TD>
    <TD align="left">
    other materials for the production of solar modules such as
    glass, aluminum frames, EVA and polymer backsheets;
</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 -->

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    production labor, including salaries and benefits for
    manufacturing 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;
</TD>
    <TD align="left">
    warranty costs;
</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;
</TD>
    <TD align="left">
    overhead, including utilities, production equipment maintenance,
    share-based compensation expenses for options granted to
    employees in our manufacturing department and other support
    expenses associated with the manufacture of our PV 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;
</TD>
    <TD align="left">
    depreciation and amortization of manufacturing equipment and
    facilities, which have increased due to capacity expansion and
    which are expected to increase as we continue to expand our
    manufacturing capabilities and to construct additional
    facilities;&#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;
</TD>
    <TD align="left">
    inventory write-downs.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Solar wafers and cells make up the major portion of our cost of
    revenues. Where we manufacture solar cells in our own
    manufacturing facility, the cost of the solar cells consists of:
    (i)&#160;the costs of purchasing solar wafers, (ii)&#160;labor
    costs incurred in manufacturing solar cells, (iii)&#160;the
    costs of other materials and utilities we use for manufacturing
    the solar cells and (iv)&#160;depreciation charges incurred for
    our solar cell manufacturing facility, equipment and building.
    In August 2008, we completed the first phase of our production
    facilities for ingot growth and wafer cutting in Luoyang and
    subsequently started to produce our own wafers made from either
    UMgSi or high purity silicon feedstock. We manufacture both
    monocrystalline and polycrystalline wafers to supply our own
    solar cell manufacturing facility to manufacture UMgSi cells for
    <FONT style="white-space: nowrap">e-Modules</FONT>
    and regular cells. However, we purchase some of the solar wafers
    and cells that we need directly from wafer and cell suppliers,
    as our internal wafer and cell production capacity is not
    sufficient to meet all of our needs.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also obtain some of our solar wafers and cells through toll
    manufacturing arrangements, under which we source and provide
    silicon feedstock to suppliers of ingots, wafers and cells.
    These suppliers convert these silicon raw materials into the
    solar wafers and cells that we use for our production of solar
    modules. The costs of solar wafers and cells that we obtain
    through these toll manufacturing arrangements comprise:
    (i)&#160;costs of purchasing the silicon feedstock,
    (ii)&#160;labor costs incurred in inventory management,
    (iii)&#160;labor costs incurred in blending the silicon
    feedstock as part of our silicon feedstock blending program, and
    (iv)&#160;tolling fees charged by our suppliers under the
    tolling arrangements. The payments we make to our suppliers for
    the solar wafers and cells and the payment our suppliers make to
    us for the silicon feedstock that we source are generally
    settled separately under these tolling arrangements. We do not
    include payments we receive for providing silicon feedstock as
    part of these toll manufacturing arrangements in our net
    revenues.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our cost of revenues also includes warranty costs. We accrue
    1.0% of our net revenues as warranty costs at the time revenues
    are recognized. 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% and 20%,
    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 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our cost of revenues has historically increased as we increased
    our net revenues. However, in late 2008, as a result of the
    global financial crisis, the demand for solar modules and the
    related cost of silicon materials and solar wafers and cells
    both decreased sharply. As a result, as of December&#160;31,
    2008, we had to make a significant write-down of our previously
    acquired inventories to market value. This write-down amounted
    to $23.3&#160;million and was included in our cost of revenue
    for 2008. We have made good progress to date in obtaining price
    adjustments under existing supply agreements with certain of our
    suppliers.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Gross
    Profit/Gross Margin</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our gross profit is affected by a number of factors, including
    the average selling prices for our products, our product mix and
    our ability to cost-effectively manage our supply chain.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our gross margin decreased from 18.0% in 2006 to 7.9% in 2007
    but increased to 10.1% in 2008. The decrease from 2006 to 2007
    was due primarily to the growth of our standard solar module
    products business. The decrease in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
</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">
    gross margin was also attributable to the higher costs of solar
    cells and silicon materials and the reduced proportion of
    reclaimable silicon in relation to raw silicon as we continued
    to grow. The decrease was also attributable to a decrease in
    average selling prices for standard solar modules in the fourth
    quarter of 2006 and the first quarter of 2007 as a result of
    <FONT style="white-space: nowrap">lower-than-anticipated</FONT>
    market demand at that time. The increase in our gross margin
    from 2007 to 2008 was attributable to higher prices for standard
    solar modules in the first three quarters of 2008, coupled with
    a favorable Euro to U.S.&#160;dollar exchange rate over the same
    period. In the fourth quarter of 2008, module prices and our
    margins decreased due to a dramatic decrease in demand and an
    unfavorable Euro to U.S.&#160;dollar exchange rate.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we will face severe margin compression in the
    sale of standard solar modules in the first half of 2009
    compared to 2008. We do not expect the market demand for
    standard solar modules to recover in the first half of 2009, as
    many of our customers have to dispose of their inventories of
    standard solar modules purchased in 2008 before they will make
    further purchases. Also, it will be more difficult for them to
    obtain financing for solar systems. On the other hand, we also
    believe that we may be able to mitigate some of this compression
    through lower raw materials costs, cost savings through research
    and development and increased production of our in-house
    <FONT style="white-space: nowrap">ingot-to-wafer</FONT>
    and
    <FONT style="white-space: nowrap">wafer-to-cell</FONT>
    manufacturing capacity.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Operating
    Expenses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operating expenses include selling expenses, general and
    administrative expenses and research and development expenses.
    Our operating expenses have increased in recent years as our
    business has grown. We expect this trend to continue as our net
    revenues grow in the future.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Selling
    Expenses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Selling expenses consist primarily of salaries, transportation
    and customs expenses for delivery of our products, sales
    commissions for sales agents, advertising, promotional and trade
    show expenses and other sales and marketing expenses. Since the
    second quarter of 2006, selling expenses have included
    share-based compensation expenses for options and restricted
    shares granted to our sales and marketing personnel. As we
    expand our business, we will increase our sales and marketing
    efforts and target companies in selected industry sectors in
    response to evolving industry trends. We expect our selling
    expenses to increase in the near term as we increase our sales
    volume, hire additional sales personnel, target more markets and
    initiate additional marketing programs to reach our goal of
    building a leading global brand. However, assuming our net
    revenues increase at the rate we expect, over time, we
    anticipate that our non-transportation selling expenses will
    decrease as a percentage of our net revenues while our
    transportation and customs expenses will increase alongside net
    revenues due to cost, insurance and freight terms requested by
    our customers.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">General
    and Administrative Expenses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    General and administrative expenses consist primarily of
    salaries and benefits for our administrative and finance
    personnel, consulting and professional service fees, government
    and administration fees, insurance fees and provisions for
    doubtful debts. Since the second quarter of 2006, our general
    and administrative expenses have included share-based
    compensation expenses for options and restricted shares granted
    to our general and administrative personnel, directors and
    consultants. We expect our general and administrative expense to
    increase as we hire additional personnel, upgrade our
    information technology infrastructure and incur expenses
    necessary to fund the anticipated growth of our business. We
    also expect general and administrative expenses to increase in
    order to support our operations as a U.S.&#160;listed company,
    including compliance-related costs. However, assuming our net
    revenues increase at our anticipated rate, we expect that our
    general and administrative expenses will decrease as a
    percentage of our net revenues.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Research
    and Development Expenses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Research and development expenses consist primarily of costs of
    raw materials used in our research and development activities,
    salaries and benefits for research and development personnel and
    prototype and equipment costs related to the design,
    development, testing and enhancement of our products and our
    silicon reclamation program. Since the second quarter of 2006,
    our research and development activities have included
    share-based
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
</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">
    compensation expenses for options and restricted shares granted
    to our research and development employees. We expense our
    research and development costs as incurred. To date, our
    research and development expenses have been minor. They are
    primarily related to our continuous efforts to improve our solar
    cell and module manufacturing processes and are not separated
    from our cost of revenues.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to devote more efforts to research and development in
    the future and expect that our research and development expenses
    will increase as we hire additional research and development
    personnel, expand and promote innovation in our products
    portfolio, and devote more resources towards using new
    technologies and alternative materials to grow ingots, cut
    wafers and manufacture solar cells.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Share-based
    Compensation Expenses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our 2006&#160;share incentive plan, we have granted and
    have outstanding a total of 1,380,523 options to purchase our
    common shares and 58,250 restricted shares as of
    December&#160;31, 2008. For a description of the options and
    restricted shares granted, including the exercise prices and
    vesting periods, see &#147;Item&#160;6. Directors, Senior
    Management and Employees&#160;&#151; B. Compensation of
    Directors and Executive Officers&#160;&#151; Share-based
    Remuneration&#160;&#151; 2006&#160;Share Incentive Plan.&#148;
    Under Statement of Financial Accounting Standards No.&#160;123
    (revised 2004), &#147;Share-Based Payment,&#148; or
    SFAS&#160;123R, we are required to recognize share-based
    compensation to employees as compensation expense in our
    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 for the equity award.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As required by SFAS&#160;123R, we have made an estimate of
    expected forfeitures and are recognizing compensation costs only
    for those equity awards expected to vest. We estimate our
    forfeitures based on past employee retention rates and our
    expectations of future retention rates. We will prospectively
    revise our forfeiture rates based on actual history. Our share
    option and restricted share compensation charges may change
    based on changes to our actual forfeitures.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2008, we recorded
    share-based compensation expenses of approximately
    $9.1&#160;million, compared to the similar amount of
    approximately $9.1&#160;million in 2007. We have categorized
    these share-based compensation expenses in our (i)&#160;cost of
    revenues, (ii)&#160;selling expenses, (iii)&#160;general and
    administrative expenses and (iv)&#160;research and development
    expenses, depending on the job functions of the grantees to whom
    we granted the options or restricted shares. The following table
    sets forth, for the periods indicated, the allocation of our
    share-based compensation expenses both in absolute amount and as
    a percentage of total share-based compensation expenses.
</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="56%">&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="2%" 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="3%" 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="2%" 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="3%" 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="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 -->
</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="22" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</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="22" align="center" valign="bottom">
    <B>(In thousands of US$, except for 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: -10pt; margin-left: 10pt">
    Share-based compensation expenses included in:
</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: -10pt; margin-left: 10pt">
    Cost of revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    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">
    3.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    3.8
</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: -10pt; margin-left: 10pt">
    Selling expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,945
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.7
</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">
    2,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.1
</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">
    1,060
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.7
</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">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,942
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64.1
</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">
    6,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,306
</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">
    80.3
</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">
    Research and development expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</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">
    386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.2
</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: -10pt; margin-left: 10pt">
    Total share-based compensation expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to incur additional share-based compensation as we
    expand our operations. For example, we anticipate that selling
    expenses will increase as we hire additional sales personnel to
    further expand our worldwide marketing activities in line with
    the expected growth of our operations.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Interest
    Expenses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest expenses consist primarily of interest expenses with
    respect to our short- and medium-term loans from Chinese
    commercial banks, non-cash charges on the convertible notes that
    we issued in 2006 to HSBC HAV2 (III)&#160;Limited, or HSBC, and
    JAFCO Asia Technology Fund&#160;II, or JAFCO, all of which were
    converted into common
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    47
</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">
    shares that same year, and the convertible notes we issued in
    2007 privately to qualified institutional investors. Offering
    costs incurred for the issuance of the notes issued in 2007
    amounted to $3,351,634, which were deferred and are being
    amortized through interest expense over the period from
    December&#160;10, 2007, the date of issuance, to
    December&#160;24, 2012, the earliest redemption date, using the
    effective interest rate method. Amortization expenses of $55,861
    and $243,729 have been recorded for the years ended
    December&#160;31, 2007 and 2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of our offer on May 27, 2008 to increase the
    conversion rate of our 6% senior convertible notes, we announced
    an increased conversion rate of 53.6061 in accordance with the
    terms of the conversion offer and issued 3,966,841&#160;common
    shares in exchange for $74&#160;million in principal amount of
    the notes on June&#160;27, 2008. We undertook this conversion
    offer in order to save interest costs and decrease our debt to
    equity ratio. Upon conversion, we saved a half year&#146;s
    coupon interest on the $74&#160;million of notes that were
    converted pursuant to the offer. In addition, $3.0&#160;million
    in unamortized debt issuance costs for the notes were
    reclassified to common shares.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Gain on
    Foreign Currency Derivative Assets</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The gain on foreign currency derivative assets in our 2008
    financial statements is associated with economic hedging of the
    Euro against the U.S.&#160;dollar. Anticipating depreciation of
    the Euro against the U.S.&#160;dollar, we entered into a total
    of &#128;103&#160;million of collar transactions with a single
    put and call option with an investment bank, with settlement
    dates ranging from the fourth quarter of 2008 to the first
    quarter of 2009. The hedging policy was later expanded by the
    board and we entered into a total of &#128;70&#160;million of
    call forward contracts with an investment bank for settlement in
    the first half of 2009. During the year, the gain on these
    foreign currency derivatives amounted to $14.5&#160;million and
    was recognized in the profit and loss account, while
    $7.0&#160;million was recorded as a foreign currency derivative
    asset on the balance sheet as of December&#160;31, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Debt
    Conversion Inducement Expenses</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recorded $10.2&#160;million of debt conversion inducement
    expenses for the year ended December&#160;31, 2008 related to
    the conversion offer we made to the holders of our
    6%&#160;senior convertible notes to induce those holders to
    convert their notes into common shares.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Foreign
    Exchange Gain (Loss)</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recorded a net currency exchange loss of $20.1&#160;million
    for the year ended December&#160;31, 2008, as compared to a net
    currency exchange gain of $2.7&#160;million for the year ended
    December&#160;31, 2007, due to the depreciation of the Euro in
    relation to the U.S.&#160;dollar since the first quarter of
    2008. Our accounts receivable are mainly denominated in Euros,
    while the U.S.&#160;dollar is our functional and reporting
    currency.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Income
    Tax Expense</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recognize deferred tax assets and liabilities for temporary
    differences between financial statement and income tax bases of
    assets and liabilities. Valuation allowances are provided
    against deferred tax assets when management cannot conclude that
    it is more likely than not that some portion or all deferred tax
    asset will be realized.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are governed by the CBCA, a federal statute of Canada, are
    registered to carry on business in Ontario and are subject to
    both Canadian federal and Ontario provincial corporate income
    taxes. Our combined tax rates were 36.12%, 36.12% and 33.50% for
    the years ended 2006, 2007 and 2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PRC enterprise income tax is calculated based on taxable income
    determined under PRC accounting principles. Our major operating
    subsidiaries, namely CSI Solartronics, CSI Manufacturing, CSI
    Cells, CSI Luoyang, and CSI Advanced, are subject to taxation in
    China. Our subsidiary CSI Solartronics has been recognized as a
    &#147;new and high technology enterprise&#148; and thus is
    entitled to a favorable 15% enterprise income tax rate, subject
    to renewal every three years. However, CSI Manufacturing
    currently enjoys a reduced enterprise income tax rate of 12.5%
    only until the end of 2009, when its tax holiday expires. CSI
    Cells and CSI Luoyang are also subject to a reduced enterprise
    income tax rate of 12.5% until the end of 2011, when their tax
    holidays expire. CSI Advanced is exempt from tax this year and
    will be subject to an EIT rate of 12.5% until the end of 2012,
    at which time its tax
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    48
</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">
    holiday will expire as well. As the preferential tax benefits
    currently enjoyed by our PRC subsidiaries expire, their
    effective tax rates will increase significantly.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The new EIT Law also provides that enterprises established
    outside China whose &#147;de facto management bodies&#148; are
    located in China are considered PRC tax residents and will
    generally be subject to the uniform 25% enterprise income tax
    rate as to their global income. Under the implementation
    regulations, the term &#147;de facto management bodies&#148; is
    defined as the bodies that have, in substance, overall
    management control over such aspects as the production and
    business, personnel, accounts and properties of an enterprise.
    Currently there are no detailed rules or precedents governing
    the procedures and specific criteria for determining a
    company&#146;s de facto management bodies. As a substantial
    number of the members of our management team are located in
    China, we may be considered as a PRC tax resident under the new
    EIT Law and, therefore, subject to the uniform 25% enterprise
    income tax rate as to our global income.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the new EIT Law and implementing regulations issued by the
    State Council, PRC withholding tax at the rate of 10% is
    generally applicable to interest and dividends payable to
    investors that are not &#147;resident enterprises&#148; in the
    PRC, to the extent such interest or dividends have their sources
    within the PRC. We consider undistributed earnings of our PRC
    subsidiaries of approximately $49.3&#160;million at
    December&#160;31, 2008 to be indefinitely reinvested in China,
    and consequently we have made no provision for withholding taxes
    for those amounts.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Critical
    Accounting Policies</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We prepare financial statements in accordance with
    U.S.&#160;GAAP, which requires us to make judgments, estimates
    and assumptions that affect (i)&#160;the reported amounts of our
    assets and liabilities, (ii)&#160;the disclosure of our
    contingent assets and liabilities at the end of each fiscal
    period and (iii)&#160;the reported amounts of revenues and
    expenses during each fiscal period. We continually evaluate
    these estimates based on our own historical experience,
    knowledge and assessment of current business and other
    conditions, our expectations regarding the future based on
    available information and reasonable assumptions, which together
    form our basis for making judgments about matters that are not
    readily apparent from other sources. Since the use of estimates
    is an integral component of the financial reporting process, our
    actual results could differ from those estimates. Some of our
    accounting policies require a higher degree of judgment than
    others in their application.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When reviewing our financial statements, you should consider
    (i)&#160;our selection of critical accounting policies,
    (ii)&#160;the judgment and other uncertainties affecting the
    application of such policies and (iii)&#160;the sensitivity of
    reported results to changes in conditions and assumptions. We
    believe the following accounting policies involve the most
    significant judgment and estimates used in the preparation of
    our financial statements.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales of modules and silicon material are recorded when products
    are delivered and title has passed to the customers. We only
    recognize revenues when prices to the seller are fixed or
    determinable, and collectibility is reasonably assured. Revenues
    also include reimbursements of shipping and handling costs of
    products sold to customers. Sales agreements typically contain
    the customary product warranties but do not contain any
    post-shipment obligations nor any return or credit provisions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A majority of our contracts provide that products are shipped
    under free on board (FOB), ex-works, or cost, insurance and
    freight (CIF) contractual terms. Under free on board (FOB)
    terms, we fulfill our obligation to deliver when the goods have
    passed over the ship&#146;s rail at the named port of shipment.
    The customer bears all costs and risks of loss or damage to the
    goods from that point. Under ex-works terms, we fulfill our
    obligation to deliver when we have made the goods available at
    our premises to the customer. The customer bears all costs and
    risks involved in taking the goods from our premises to the
    desired destination. Under cost, insurance and freight (CIF)
    terms, we must pay the costs, marine insurance and freight
    necessary to bring the goods to the named port of destination
    but the risk of loss of or damage to the goods, as well as any
    additional costs due to events occurring after the time the
    goods have been delivered on board the vessel, is transferred to
    the customer when the goods pass the ship&#146;s rail in the
    port of shipment. Sales are recorded when the risk of loss or
    damage is transferred from us to the customers.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    49
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We enter into toll manufacturing arrangements in which we
    receive wafers and returns finished modules. We recognize a
    service fee as revenue when the processed modules are delivered.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Warranty
    Cost</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our solar modules and products are typically sold with up to a
    two-year guarantee for defects in materials and workmanship and
    <FONT style="white-space: nowrap">10-year</FONT> and
    <FONT style="white-space: nowrap">25-year</FONT>
    warranties against specified declines in the initial minimum
    power generation capacity at the time of delivery. We have the
    right to repair or replace solar modules, at our option, under
    the terms of the warranty policy. We maintain warranty reserves
    to cover potential liabilities that could arise under these
    guarantees and warranties. Due to limited warranty claims to
    date, we accrue the estimated costs of warranties based on an
    assessment of our competitors&#146; accrual history,
    industry-standard accelerated testing, estimates of failure
    rates from our quality review, and other assumptions that we
    believe to be reasonable under the circumstances. Actual
    warranty costs are accumulated and charged against the accrued
    warranty liability. To the extent that accrual warranty costs
    differ from the estimates, we will prospectively revise our
    accrual rate.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Impairment
    of Long-lived Assets</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate our long-lived assets for impairment whenever events
    or changes in circumstances indicate that the carrying amount of
    an asset may not be recoverable. When these events occur, we
    measure impairment by comparing the carrying amount of the
    assets to future undiscounted net cash flows expected to result
    from the use of the assets and their eventual disposition. If
    the sum of the expected undiscounted cash flow is less than the
    carrying amount of the assets, we will recognize an impairment
    loss based on the fair value of the assets. There was no
    impairment charge recognized during the years ended
    December&#160;31, 2006, 2007 and 2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Allowance
    for Doubtful Accounts</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conduct credit evaluations of customers and generally do not
    require collateral or other security from our customers. We
    establish an allowance for doubtful accounts primarily based
    upon the age of the receivables and factors surrounding the
    credit risk of specific customers. As of December&#160;31, 2007
    and 2008, allowance for doubtful accounts in the amounts of
    $376,178 and $5,605,983, respectively, were made for certain
    specific customers for whom the management expected a credit
    risk on the collection of accounts receivable balances. With
    respect to advances to suppliers, our suppliers are primarily
    suppliers of solar cells, solar wafers and silicon raw
    materials. We perform ongoing credit evaluations of our
    suppliers&#146; financial conditions. We generally do not
    require collateral or security against advances to suppliers, as
    they tend to be recurring supply partners. However, we
    maintained a reserve for potential credit losses for advance to
    suppliers as of December&#160;31, 2007 and 2008 amounting to nil
    and $2,341,685, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inventories are stated at the lower of cost or market. Cost is
    determined by the weighted average method. Cost of inventories
    consists of costs of direct materials, and where applicable,
    direct labor costs, tolling costs and any overhead that we incur
    in bringing the inventories to their present location and
    condition.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjustments are recorded to write down the cost of obsolete and
    excess inventories to the estimated market value based on
    historical and forecast demand. The write-down of inventories
    were $274,947, $482,544 and $23,784,578 for the years ended
    December&#160;31, 2006, 2007 and 2008, respectively. The
    decrease in inventories reserves in 2008 was a result of a
    write-down of inventory following the sharp fall in the market
    value of silicon materials in the fourth quarter.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We outsource portions of our manufacturing process, including
    converting silicon into ingots, cutting ingots into wafers, and
    converting wafers into solar cells, to various third-party
    manufacturers. These outsourcing arrangements may or may not
    include transfer of title of the raw material inventory
    (silicon, ingots or wafers) to the third-party manufacturers.
    Such raw materials are recorded as raw materials inventory when
    purchased from suppliers.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    50
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For those outsourcing arrangements in which the title is not
    transferred, we maintain such inventory on our balance sheet as
    raw materials inventory while it is in physical possession of
    the third-party manufacturer. Upon receipt of the processed
    inventory, it is reclassified to
    <FONT style="white-space: nowrap">work-in-process</FONT>
    inventory and a processing fee is paid to the third-party
    manufacturer.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For those outsourcing arrangements, which are characterized as
    sales, in which title (including risk of loss) transfer to the
    third-party manufacturer, we are constructively obligated,
    through raw materials sales contracts and processed inventory
    purchase contracts which have been entered into simultaneously
    with the third-party manufacturers, to repurchase the inventory
    once processed. In this case, the raw material inventory remains
    classified as raw material inventory while in physical
    possession of the third-party manufacturer and cash is received,
    which is classified as advances from customers on the balance
    sheet and not as revenue or deferred revenue. Cash payments for
    outsourcing arrangements, which require prepayment for
    repurchase of the processed inventory are classified as advances
    to suppliers on the balance sheet. There is no right of offset
    for these arrangements and accordingly, advances from customers
    and advances to suppliers remain on the balance sheet until the
    processed inventory is repurchased.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Fair
    value of derivative and financial instruments</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The carrying value of cash and cash equivalents, trade
    receivables, advances to suppliers, accounts payable and
    short-term borrowings approximate their fair values due to the
    short-term maturity of these instruments. Long-term bank
    borrowings approximate their fair value since the contracts were
    entered into with floating market interest rates.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The carrying amount of our outstanding convertible notes as of
    December&#160;31, 2008 was $1.0&#160;million. The estimated fair
    value of those notes was $0.8&#160;million as of
    December&#160;31, 2008. We did not compute the fair value of our
    $3.0&#160;million investment in Jaco Corporation Ltd. (as of
    December&#160;31, 2008)&#160;as it was impracticable to do so
    without incurring significant cost.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our primary objective for holding derivative financial
    instruments is to manage currency risk. We record derivative
    instruments as assets or liabilities, measured at fair value.
    The recognition of gains or losses resulting from changes in
    fair values of those derivative instruments is based on the use
    of each derivative instrument and whether it qualifies for hedge
    accounting.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into certain foreign currency derivative contracts to
    protect against volatility of future cash flows caused by the
    changes in foreign exchange rates. The foreign currency
    derivative contracts do not qualify for hedge accounting and, as
    a result, the changes in fair value of the foreign currency
    derivative contracts are recognized in the statement of
    operations. We recorded gain on foreign currency derivative
    contracts of $nil, $nil and $14,454,814 for the years ended
    December&#160;31, 2006, 2007 and 2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Changes to any of the assumptions used in the valuation model
    could materially impact the valuation results. A more detailed
    discussion on fair value calculations is reflected in
    Note&#160;6 to our consolidated financial statements included
    elsewhere in this annual report.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Deferred income taxes are recognized for temporary differences
    between the tax basis of assets and liabilities and their
    reported amounts in the financial statements, net tax loss carry
    forwards and credits by applying enacted statutory tax rates
    applicable to future years. Deferred tax assets are reduced by a
    valuation allowance when, in the opinion of management, it is
    more likely than not that some portion or all of the deferred
    tax assets will not be realized. Current income taxes are
    provided for in accordance with the laws of the relevant taxing
    authorities. The components of the deferred tax assets and
    liabilities are individually classified as current and
    non-current based on the characteristics of the underlying
    assets and liabilities, or the expected timing of their use when
    they do not relate to a specific asset or liability.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Financial Accounting Standard Board, or FASB, issued
    Financial Interpretation No.&#160;48, <I>Accounting for
    Uncertainty in Income Taxes</I>, or FIN&#160;48, which clarifies
    the accounting for uncertainty in income taxes recognized in the
    financial statements in accordance with SFAS&#160;No.&#160;109,
    <I>Accounting for Income Taxes</I>. FIN&#160;48 provides that a
</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">
    tax benefit from an uncertain tax position may be recognized
    when it is more likely than not that the position will be
    sustained upon examination, including resolutions of any related
    appeals or litigation processes, based on the technical merits.
    Income tax positions must meet a more-likely-than-not
    recognition threshold at the effective date to be recognized
    upon the adoption of FIN&#160;48 and in subsequent periods. This
    interpretation also provides guidance on measurement,
    derecognition, classification, interest and penalties,
    accounting in interim periods, disclosure and transition.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We adopted the provisions of FIN&#160;48 on January&#160;1, 2007
    and recognized a $612,199 increase in the liability for
    uncertain tax positions, which was accounted for as a reduction
    to the January&#160;1, 2007 balance of retained earnings.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Share-based
    compensation</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We account for share-based compensation in accordance with
    SFAS&#160;No.&#160;123 (revised 2004), <I>Share-Based
    Payment</I>, or SFAS&#160;123R. SFAS&#160;123R requires us to
    use a fair-value based method to account for share-based
    compensation. Accordingly, share-based compensation cost is
    measured at the grant date, based on the fair value of the
    award, and is recognized as expense over the requisite service
    period. Our option plans are described more fully in
    Note&#160;18 to our consolidated financial statements included
    elsewhere in this annual report.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Recently
    Issued Accounting Pronouncements:</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued Statement of Financial
    Accounting Standards No.&#160;141R (revised 2007), <I>Business
    Combination</I>, or SFAS&#160;141R, to improve reporting and to
    create greater consistency in the accounting and financial
    reporting of business combinations. The standard requires the
    acquiring entity in a business combination to recognize all (and
    only) the assets acquired and liabilities assumed in the
    transaction; establishes the acquisition-date fair value as the
    measurement objective for all assets acquired and liabilities
    assumed; and requires the acquirer to disclose to investors and
    other users all of the information they need to evaluate and
    understand the nature and financial effect of the business
    combination. SFAS&#160;141R applies prospectively to business
    combinations for which the acquisition date is on or after the
    beginning of the first annual reporting period beginning on or
    after December&#160;15, 2008, with the exception of the
    accounting for valuation allowances on deferred taxes and
    acquired tax contingencies. SFAS&#160;141R amends SFAS&#160;109,
    &#147;Accounting for Income Taxes,&#148; such that adjustments
    made to valuation allowances on deferred taxes and acquired tax
    contingencies associated with acquisitions that closed prior to
    the effective date of SFAS&#160;141R would also apply the
    provisions of SFAS&#160;141R. The adoption of SFAS&#160;141R
    will change our accounting treatment for business combinations
    on a prospective basis beginning on January&#160;1, 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;1, 2009, the FASB issued FASB Staff Position
    No.&#160;141(R)-1, <I>Accounting for Assets Acquired and
    Liabilities Assumed in a Business Combination That Arise from
    Contingencies</I>, or FSP&#160;141(R)-1, which amends the
    guidance in SFAS&#160;141R to establish a model for
    pre-acquisition contingencies that is similar to the one
    entities used under SFAS&#160;141. Under the FSP, an acquirer is
    required to recognize at fair value an asset acquired or a
    liability assumed in a business combination that arises from a
    contingency if the acquisition-date fair value of that asset or
    liability can be determined during the measurement period. If
    the acquisition-date fair value cannot be determined, then the
    acquirer follows the recognition criteria in SFAS&#160;5 and
    FIN&#160;14 to determine whether the contingency should be
    recognized as of the acquisition date or after it. The FSP is
    effective for business combinations whose acquisition date is on
    or after the beginning of the first annual reporting period
    beginning on or after December&#160;15, 2008. The adoption of
    FSP&#160;141(R)-1 will change our accounting treatment for
    business combinations on a prospective basis beginning on
    January&#160;1, 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued SFAS&#160;No.&#160;160,
    <I>Noncontrolling Interests in Consolidated Financial
    Statements&#160;&#151; an amendment of ARB No.&#160;51</I>, or
    SFAS&#160;160, to improve the relevance, comparability, and
    transparency of financial information provided to investors by
    requiring all entities to report non-controlling interests in
    subsidiaries in the same way as required in the consolidated
    financial statements. SFAS&#160;160 eliminates the diversity
    that currently exists in accounting for transactions between an
    entity and noncontrolling interests by requiring they be treated
    as equity transactions. SFAS&#160;160 is effective for fiscal
    years, and interim periods within those fiscal years, beginning
    on or after December&#160;15, 2008. We do not expect that the
    adoption of SFAS&#160;160 will have an impact on the
    consolidated financial statements.
</DIV>

<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 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2008, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;157-2,</FONT>
    <I>Effective Date of FASB Statement No.&#160;157</I>, or
    <FONT style="white-space: nowrap">FSP&#160;157-2.</FONT>
    <FONT style="white-space: nowrap">FSP&#160;157-2</FONT>
    delays the effective date of SFAS&#160;157 for nonfinancial
    assets and nonfinancial liabilities, except for items that are
    recognized or disclosed at fair value in the financial
    statements on a recurring basis, until fiscal years beginning
    after November&#160;15, 2008. As a result of
    <FONT style="white-space: nowrap">FSP&#160;157-2,</FONT>
    we will adopt SFAS&#160;157 for our nonfinancial assets and
    nonfinancial liabilities beginning with the first interim period
    of our fiscal year 2009. We do not expect that the adoption of
    SFAS&#160;157 for our nonfinancial assets and nonfinancial
    liabilities will have a material impact on our financial
    position, results of operations or cash flows.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2008, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;157-3,</FONT>
    <I>Determining the Fair Value of a Financial Asset When the
    Market for That Asset Is Not Active</I>, or
    <FONT style="white-space: nowrap">FSP&#160;157-3.</FONT>
    <FONT style="white-space: nowrap">FSP&#160;157-3</FONT>
    clarifies the application of SFAS&#160;157 in a market that is
    not active, and addresses application issues such as the use of
    internal assumptions when relevant observable data does not
    exist, the use of observable market information when the market
    is not active, and the use of market quotes when assessing the
    relevance of observable and unobservable data.
    <FONT style="white-space: nowrap">FSP&#160;157-3</FONT>
    is effective for all periods presented in accordance with
    FAS&#160;157. We do not expect the adoption of
    <FONT style="white-space: nowrap">FSP&#160;157-3</FONT>
    to have a material impact on our consolidated financial
    statements or the fair values of our financial assets and
    liabilities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;9, 2009, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;157-4,</FONT>
    <I>Determining Fair Value When the Volume and Level of Activity
    for the Asset or Liability Have Significantly Decreased and
    Identifying Transactions That Are Not Orderly
    </I><FONT style="white-space: nowrap">(&#147;FSP&#160;157-4&#148;).</FONT>
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    provides additional guidance for estimating fair value in
    accordance with FASB 157 when the volume and level of activity
    for the asset or liability have significantly decreased. This
    FSP also includes guidance on identifying circumstances that
    indicate a transaction is not orderly. We do not expect the
    adoption of
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    to have a material impact on the consolidated financial
    statements or the fair values of its financial assets and
    liabilities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2008, the FASB issued SFAS&#160;No.&#160;161,
    <I>Disclosures About Derivative Instruments and Hedging
    Activities </I>(&#147;SFAS&#160;161&#148;), an amendment of FASB
    Statement No.&#160;133. The new standard requires enhanced
    disclosures to help investors better understand the effect of an
    entity&#146;s derivative instruments and related hedging
    activities on its financial position, financial performance and
    cash flows. SFAS&#160;161 is effective for financial statements
    issued for fiscal years and interim periods beginning after
    November&#160;15, 2008, with early application encouraged.
    SFAS&#160;161 does not change the accounting treatment for
    derivative instruments but will impact our disclosures related
    to derivative instruments and hedging activities effective from
    January&#160;1, 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In April 2008, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;142-3,</FONT>
    <I>Determining the Useful Life of Intangible Assets
    </I><FONT style="white-space: nowrap">(&#147;FSP&#160;142-3&#148;).</FONT>
    <FONT style="white-space: nowrap">FSP&#160;142-3</FONT>
    amends the factors to be considered in determining the useful
    life of intangible assets. Its intent is to improve the
    consistency between the useful life of an intangible asset and
    the period of expected cash flows used to measure such
    asset&#146;s fair value.
    <FONT style="white-space: nowrap">FSP&#160;142-3</FONT>
    is effective for fiscal years beginning after December&#160;15,
    2008. We do not expect that the adoption of
    <FONT style="white-space: nowrap">FSP&#160;142-3</FONT>
    will have a material impact on the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2008, the FASB issued FSP Accounting Principles Board
    (&#147;APB&#148;) Opinion
    <FONT style="white-space: nowrap">14-1,</FONT>
    <I>Accounting for Convertible Debt Instruments That May Be
    Settled in Cash upon Conversion (Including Partial Cash
    Settlement) </I>(&#147;FSP APB
    <FONT style="white-space: nowrap">14-1&#148;).</FONT>
    FSP APB <FONT style="white-space: nowrap">14-1</FONT>
    requires recognition of both the liability and equity components
    of convertible debt instruments with cash settlement features.
    The debt component is required to be recognized at the fair
    value of a similar instrument that does not have an associated
    equity component. The equity component is recognized as the
    difference between the proceeds from the issuance of the note
    and the fair value of the liability. FSP APB
    <FONT style="white-space: nowrap">14-1</FONT> also
    requires an accretion of the resulting debt discount over the
    expected life of the debt. Retrospective application to all
    periods presented is required. This standard is effective for us
    beginning in the first quarter of fiscal year 2009. The
    convertible notes issued in December 2007&#160;may be settled in
    cash upon conversion under the original contract terms. The
    cumulative effect of implementing FSP APB
    <FONT style="white-space: nowrap">14-1</FONT> will be
    an increase of $100.4&#160;million in common shares, a decrease
    in additional paid-in capital of $102.2&#160;million and an
    increase in retained earnings of $1.9&#160;million as of
    December&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At its June&#160;25, 2008 meeting, the FASB ratified the
    consensus reached in the Emerging Issues Task Force
    (&#147;EITF&#148;) Issue
    <FONT style="white-space: nowrap">No.&#160;07-5,</FONT>
    <I>Determining Whether an Instrument (or Embedded Feature) Is
    Indexed to an Entity&#146;s Own Stock
    </I><FONT style="white-space: nowrap">(&#147;EITF&#160;07-5&#148;).</FONT>
    <FONT style="white-space: nowrap">EITF&#160;07-5</FONT>
    is effective for fiscal years and interim periods beginning
    after December&#160;15, 2008. This Issue&#146;s
    &#147;fixed-for-fixed, plus fair value inputs&#148; model is
    largely consistent with current interpretations of the
</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: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    phrase &#147;indexed to an entity&#146;s own stock.&#148;
    However, in certain circumstances, Issue
    <FONT style="white-space: nowrap">07-5</FONT> may
    result in changes to those accounting conclusions and may have
    impact on issuers of equity-linked financial instruments (e.g.,
    options or forward contracts) or instruments containing embedded
    features (e.g., embedded conversion options in a convertible
    instrument) that have (1)&#160;exercise or settlement
    contingency provisions, (2)&#160;a strike price that is subject
    to adjustment, or (3)&#160;a strike price that is denominated in
    a currency other than the entity&#146;s functional currency. We
    are currently evaluating the impact of this statement on its
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In April 2009, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;115-2</FONT>
    and <FONT style="white-space: nowrap">124-2,</FONT>
    <I>Recognition and Presentation of Other-Than-Temporary
    Impairments </I>(&#147;FSP
    <FONT style="white-space: nowrap">FAS&#160;115-2</FONT>
    and
    <FONT style="white-space: nowrap">FAS&#160;124-2&#148;).</FONT>
    The FSP amends the other-than-temporary impairment guidance in
    U.S.&#160;GAAP for debt securities to make the guidance more
    operational and to improve the presentation and disclosure of
    other-than-temporary impairments on debt and equity securities
    in the financial statements. This FSP does not amend existing
    recognition and measurement guidance related to
    other-than-temporary impairments of equity securities. We do not
    expect the adoption of FSP
    <FONT style="white-space: nowrap">FAS&#160;115-2</FONT>
    and
    <FONT style="white-space: nowrap">FAS&#160;124-2</FONT>
    to have a material impact on the consolidated financial
    statements.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Results
    of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth a summary, for the periods
    indicated, of our consolidated results of operations and each
    item expressed as a percentage of our total net revenues. Our
    historical results presented below are not necessarily
    indicative of the results that may be expected for any future
    period.
</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: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&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="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="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="5%" 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="5%" 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="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" 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="22" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</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$, except 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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net revenues
</DIV>
</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">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    302,798
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    705,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cost of revenues
</DIV>
</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">
    81.9
</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">
    279,022
</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">
    92.1
</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">
    633,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89.9
</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: 9pt">
    Gross profit
</DIV>
</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">
    18.1
</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">
    23,776
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9
</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">
    71,008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.1
</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: 9pt">
    Operating 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">
&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" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Selling expenses
</DIV>
</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">
    4.3
</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">
    7,531
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,608
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.5
</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: 18pt">
    General and  administrative expenses
</DIV>
</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">
    11.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.7
</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">
    34,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.9
</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: 18pt">
    Research and development expenses
</DIV>
</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">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</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">
    1,825
</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">
    0.3
</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: 9pt">
    Total operating expenses
</DIV>
</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">
    16.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,733
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,943
</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">
    6.7
</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: 9pt">
    Income (loss) from operations
</DIV>
</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">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,957
</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">
    (0.7
</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">
    24,065
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.4
</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: 9pt">
    Other income (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">
    &#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="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest expenses
</DIV>
</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">
    (3.2
</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">
    (2,367
</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">
    (0.8
</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">
    (11,266
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest income
</DIV>
</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">
    0.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,531
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.5
</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: 18pt">
    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">
    (8,187
</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">
    (12.0
</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">
    &#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">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gain on foreign currency derivative 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">
    14,455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</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: 18pt">
    Debt conversion inducement 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">
    &#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">
    (10,170
</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">
    (1.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Foreign exchange gain (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (481
</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">
    (0.7
</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">
    2,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</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">
    (20,087
</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">
    (2.8
</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: 9pt">
    Other net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    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">
    0.2
</TD>
<TD 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: 9pt">
    Income (loss) before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,998
</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">
    (13.2
</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">
    (394
</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">
    (0.2
</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">
    528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.1
</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: 9pt">
    Income tax benefit (expense)
</DIV>
</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">
    (0.6
</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">
    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">
    0.1
</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">
    (9,916
</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">
    (1.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    (13.8
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (210
</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">
    (0.1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,388
</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">
    (1.3
</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>
</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>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Year
    Ended December&#160;31, 2008 Compared to Year Ended
    December&#160;31, 2007</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Net Revenues.</I>&#160;&#160;Our total net revenues increased
    133% from $302.8&#160;million for the year ended
    December&#160;31, 2007 to $705.0&#160;million for the year ended
    December&#160;31, 2008. The increase in net revenues was
    primarily due to increases in the sales of our solar module
    products, from $282.4&#160;million for the year ended
    December&#160;31, 2007 to $692.3&#160;million for the year ended
    December&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The volume of our solar module products sold increased from
    83.4&#160;MW for the year ended December&#160;31, 2007 to
    166.5&#160;MW for the year ended December&#160;31, 2008. The
    significant increase in the volume of our solar module products
    sold was attributable to strong demand from Spain and Germany,
    the two largest markets. Some of the
</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 align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    demand from Spain have been accelerated to qualify for a
    government incentive program that was scheduled to expire on
    September&#160;30, 2008. In addition, the average selling price
    of standard solar modules also increased from $3.75&#160;per
    watt in 2007 to $4.23&#160;per watt 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Revenues.</I>&#160;&#160;Our cost of revenues
    increased from $279.0&#160;million in 2007 to
    $634.0&#160;million in 2008. The increase in our cost of
    revenues was due primarily to the increase in the volume of our
    sales of solar module products. As a percentage of our total net
    revenues, cost of revenues decreased from 92.1% for the year
    ended December&#160;31, 2007 to 89.9% for the year ended
    December&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gross Profit.</I>&#160;&#160;As a result of the foregoing,
    our gross profit increased from $23.8&#160;million for the year
    ended December&#160;31, 2007 to $71.0&#160;million for the year
    ended December&#160;31, 2008. Our gross margin increased from
    7.9% for the year ended December&#160;31, 2007 to 10.1% for the
    year ended December&#160;31, 2008. We achieved gross margins in
    excess of 15% for each of the first three quarters, but the
    inventory write-down and sales price reductions in the fourth
    quarter brought our gross margin for the entire year back down
    to 10.1%.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Operating Expenses.</I>&#160;&#160;Our operating expenses
    increased by 81.8% from $25.8&#160;million for the year ended
    December&#160;31, 2007 to $46.9&#160;million for the year ended
    December&#160;31, 2008. The increase in our operating expenses
    was due primarily to an increase in our general and
    administrative expenses and selling expenses, in line with our
    increased sales volume. The general and administrative expenses
    included a $7.4&#160;million allowance for doubtful accounts.
    Operating expenses as a percentage of our total net revenues
    decreased from 8.5% for the year ended December&#160;31, 2007 to
    6.7% for the year ended December&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling Expenses.</I>&#160;&#160;Our selling expenses
    increased from $7.5&#160;million for the year ended
    December&#160;31, 2007 to $10.6&#160;million for the year ended
    December&#160;31, 2008. Selling expenses as a percentage of our
    total net revenues decreased from 2.5% for the year ended
    December&#160;31, 2007 to 1.5% for the year ended
    December&#160;31, 2008. The increase in our selling expenses was
    due primarily to increases in freight charges, advertising and
    promotion expenses and sales commissions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General and Administrative Expenses.</I>&#160;&#160;Our
    general and administrative expenses increased by 100.6% from
    $17.2&#160;million for the year ended December&#160;31, 2007 to
    $34.5&#160;million for the year ended December&#160;31, 2008,
    primarily due to a significant increase in allowance for
    doubtful accounts, an increase in head count, depreciation and
    professional fees. As a percentage of our total net revenues,
    general and administrative expenses decreased from 5.7% for 2007
    to 4.9% for 2008. The general and administrative expenses
    included a $7.4&#160;million allowance for doubtful accounts as
    of December&#160;31, 2008, as compared to $0.5&#160;million as
    of December&#160;31, 2007.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Research and Development Expenses.</I>&#160;&#160;Our
    research and development expenses increased from
    $1.0&#160;million for the year ended December&#160;31, 2007 to
    $1.8&#160;million for the year ended December&#160;31, 2008, due
    to increased efforts in the development of new products. We
    expect our expenditures for research and development efforts to
    increase significantly in 2009 as we have set up a solar cell
    research laboratory where we will 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest Expenses.</I>&#160;&#160;Our interest expenses
    increased from $2.4&#160;million for the year ended
    December&#160;31, 2007 to $11.3&#160;million for the year ended
    December&#160;31, 2008. The interest expenses for the year ended
    December&#160;31, 2008 were in connection with short and
    long-term bank loans, interest and amortization of issuance cost
    on our convertible notes and interest on a short-term loan from
    Dr.&#160;Shawn Qu. We believe that we will continue to enter
    into new commercial bank loans to further expand our business in
    2009, and we expect that our interest expenses will increase as
    a result.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gain On Foreign Currency Derivative Assets.</I>&#160;&#160;We
    recorded a gain on foreign currency derivative assets of
    $14.5&#160;million for the year ended December&#160;31, 2008
    compared to nil for the year ended December&#160;31, 2007. This
    represented a gain on the hedge that we established on our Euro
    accounts receivable by means of foreign currency collars and
    forward contracts. The loss against which this gain served as a
    hedge is recorded under Foreign exchange gain (loss).
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Debt Conversion Inducement Expenses </I>We recorded
    $10.2&#160;million of debt conversion inducement expenses for
    the year ended December&#160;31, 2008 related to the conversion
    offer we made to the holders of our 6%&#160;Senior Convertible
    Notes to induce those holders to convert their notes into common
    shares.
</DIV>

<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 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Foreign Exchange Gain (Loss).</I>&#160;&#160;We recorded a
    net currency exchange loss of $20.1&#160;million for the year
    ended December&#160;31, 2008, as compared to a net currency
    exchange gain of $2.7&#160;million for the year ended
    December&#160;31, 2007, due to the depreciation of the Euro in
    relation to the U.S.&#160;dollar and our accounts receivable are
    mainly denominated in Euros, while the U.S.&#160;dollar is our
    functional and reporting currency.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Income Tax Benefit (Expense).</I>&#160;&#160;Our income tax
    expense was $9.9&#160;million for the year ended
    December&#160;31, 2008, as compared to a benefit of
    $0.2&#160;million for the year ended December&#160;31, 2007, in
    part due to a significant increase in unrecognized tax benefits
    under FIN&#160;48, relating to transfer pricing.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Net Loss.</I>&#160;&#160;As a result of the cumulative effect
    of the above factors, we recorded a $9.4&#160;million net loss
    for the year ended December&#160;31, 2008, as compared to a
    $0.2&#160;million net loss for the year ended December&#160;31,
    2007.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Year
    Ended December&#160;31, 2007 Compared to Year Ended
    December&#160;31, 2006</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Net Revenues.</I>&#160;&#160;Our total net revenues increased
    344% from $68.2&#160;million for the year ended
    December&#160;31, 2006 to $302.8&#160;million for the year ended
    December&#160;31, 2007. The significant increase in net revenues
    was primarily generated from the sale of our solar module
    products from $59.8&#160;million for the year ended
    December&#160;31, 2006 to $282&#160;million for the year ended
    December&#160;31, 2007. As a percentage of total revenues, solar
    module product sales increased from 88% to 93%, with remaining
    revenue figures attributable to OEM/tolling and third-party
    silicon material sales.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The volume of our solar module products sold increased from
    14.9&#160;MW for the year ended December&#160;31, 2006 to
    83.4&#160;MW for the year ended December&#160;31, 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Revenues.</I>&#160;&#160;Our cost of revenues
    increased from $55.9&#160;million in 2006 to $279&#160;million
    in 2007. The increase in our cost of revenues was due primarily
    to a significant increase in the quantity of silicon, solar
    wafers and solar cells needed to produce an increased output of
    our standard solar modules and the rising prices of silicon
    feedstock and solar wafers and cells arising from the
    industry-wide shortage of high-purity silicon. As a percentage
    of our total net revenues, cost of revenues increased from 81.9%
    for the year ended December&#160;31, 2006 to 92.1% for the year
    ended December&#160;31, 2007.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gross Profit.</I>&#160;&#160;As a result of the foregoing,
    our gross profit increased from $12.3&#160;million for the year
    ended December&#160;31, 2006 to $23.8&#160;million for the year
    ended December&#160;31, 2007. Our gross margin decreased from
    18.1% for the year ended December&#160;31, 2006 to 7.9% for the
    year ended December&#160;31, 2007. The decrease in gross margin
    was due primarily to the rising prices of silicon feedstock,
    solar wafers 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Operating Expenses.</I>&#160;&#160;Our operating expenses
    increased by 130% from $11.2&#160;million for the year ended
    December&#160;31, 2006 to $25.8&#160;million for the year ended
    December&#160;31, 2007. The increase in our operating expenses
    was due primarily to an increase in our general and
    administrative expenses and selling expenses, a result of our
    corresponding net revenue increase of 344% from the previous
    year. Operating expenses as a percentage of our total net
    revenue decreased from 16.5% for the year ended
    December&#160;31, 2006 to 8.5% for the year ended
    December&#160;31, 2007.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling Expenses.</I>&#160;&#160;Our selling expenses
    increased from $2.9&#160;million for the year ended
    December&#160;31, 2006 to $7.5&#160;million for the year ended
    December&#160;31, 2007. Selling expenses as a percentage of our
    total net revenues decreased from 4.3% for the year ended
    December&#160;31, 2006 to 2.5% for the year ended
    December&#160;31, 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
</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">
    sales terms in 2007 comparing to mostly
    <FONT style="white-space: nowrap">free-on-board</FONT>
    or ex-work sales terms in 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General and Administrative Expenses.</I>&#160;&#160;Our
    general and administrative expenses increased by 117.7% from
    $7.9&#160;million for the year ended December&#160;31, 2006 to
    $17.2&#160;million for the year ended December&#160;31, 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 11.6% for 2006 to 5.7%
    for 2007, primarily as a result of the greater economies of
    scale that we achieved in 2007.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Research and Development Expenses.</I>&#160;&#160;Our
    research and development expenses increased significantly from
    $0.4&#160;million for the year ended December&#160;31, 2006 to
    $1.0&#160;million for the year ended December&#160;31, 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest Expenses.</I>&#160;&#160;We incurred interest
    expenses of approximately $2.2&#160;million for the year ended
    December&#160;31, 2006 compared to $2.4&#160;million for the
    year ended December&#160;31, 2007. The interest expenses for the
    $2.2&#160;million for the year ended December&#160;31, 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 we grew our business, we
    entered into additional commercial bank loans and issued new
    convertible notes in 2007. We believe that we will continue to
    enter into new commercial bank loans for further expansion and
    revenue growth in 2008. As a result, we expect that our interest
    expenses will increase.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Foreign Exchange Gain (Loss</I>).&#160;&#160;We recorded a
    net currency exchange gain of $2.7&#160;million for the year
    ended December&#160;31, 2007, as compared to a net currency
    exchange loss of $0.5&#160;million for the year ended
    December&#160;31, 2006 due to the appreciation of the Euro
    against the U.S.&#160;dollar. Our accounts receivable are mainly
    denominated in Euros, while the U.S.&#160;dollar is our
    functional and reporting currency.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Income Tax Benefit (Expense).</I>&#160;&#160;Our income tax
    expense was $0.4&#160;million for the year ended
    December&#160;31, 2006, as compared to a gain of
    $0.2&#160;million for the year ended December&#160;31, 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 convertible note offering in
    December 2007, 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Net Loss.</I>&#160;&#160;As a result of the cumulative effect
    of the above factors, we recorded net loss of $0.2&#160;million
    for the year ended December&#160;31, 2007, as compared to a
    $9.4&#160;million net loss for the year ended December&#160;31,
    2006.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></U></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; 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
    Flows and Working Capital</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, we financed our operations primarily through cash flows
    from operations, short and long-term borrowings, and the
    proceeds from our follow-on public offering of common shares. As
    of December&#160;31, 2008, we had $115.7&#160;million in cash
    and cash equivalents. Our cash and cash equivalents primarily
    consist of cash on hand, demand deposits and liquid investments
    with original maturities of three months or less that are
    outstanding and placed with banks and other financial
    institutions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, we issued $75.0&#160;million principal amount
    of 6.0%&#160;Convertible Senior Notes due 2017 in a private
    placement pursuant to Rule&#160;144A of the Securities Act. The
    notes bear interest at a rate of 6% per annum. The notes are
    convertible into common shares based on an initial conversion
    rate of 50.6073 common shares per $1,000 principal amount of
    notes (which represents an initial conversion price of
    approximately $19.76 per common share). The notes may be
    converted at any time prior to the close of business on the
    business day immediately preceding the stated maturity date. We
    may redeem the notes on or after December&#160;24, 2012 at a
</DIV>

<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 align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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. Noteholders 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. In addition, we are required to make an offer
    to purchase the notes for cash upon a &#147;change in
    control&#148; at 100% of the principal amount of the notes, plus
    accrued and unpaid interest to, but excluding, the purchase date.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;27, 2008, we announced the commencement of an offer
    to noteholders of our 6.0%&#160;Convertible Senior Notes due
    2017 to convert their notes into our common shares. The
    conversion offer was intended to reduce our ongoing fixed
    interest obligations and to improve the trading liquidity of our
    common shares by increasing the number of outstanding shares
    available for trading. On June&#160;27, 2008, we announced the
    close of the offer at a conversion rate of 53.6061 per $1,000
    principal amount of notes and issued 3,966,841 common shares in
    exchange for $74.0&#160;million in principal amount of the
    notes. The induced conversion resulted in a charge to earnings
    of $10.2&#160;million, which was equal to the fair value of all
    common shares and cash consideration transferred in the
    transaction in excess of the fair value of the common shares
    issuable pursuant to the original conversion terms. In addition,
    upon conversion $3.0&#160;million unamortized debt issuance
    costs were reclassified to common shares. Only $1.0&#160;million
    in principal amount of the convertible senior notes remains
    outstanding.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For additional information on past convertible note issuances,
    see &#147;Item&#160;7. Major Shareholders and Related Party
    Transactions&#160;&#151; B. Related Party
    Transactions&#160;&#151; Issuance, Sale and Conversion of
    Convertible Notes.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In July 2008, we issued and sold 3,500,000 common shares in a
    follow-on public offering at a price to the public of $34.00 per
    common share. We received proceeds of $112.8&#160;million from
    the offering.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have significant working capital requirements because our
    suppliers of solar wafers, cells and silicon raw materials
    typically require us to make prepayments of 100% of the purchase
    price in cash or pay the purchase price by letters of credit at
    sight. During 2008, in a long-term supply contract, customary
    with the current industry practice, we were further required to
    make large prepayments of between 3% to 8% of the total contract
    amount in cash to our supplier in advance of the planned
    delivery with the prepayments being proportionally off-set
    against deliveries from the supplier during the contract term or
    off-set against the last delivery under the supply contract. Due
    to these industry practices, working capital and access to
    financings to allow for the purchase of silicon feedstock are
    critical to growing our business. Total advances to suppliers,
    including both short-term and long-term advances, increased
    significantly from $32.8&#160;million as of December&#160;31,
    2007 to $67.7&#160;million as of December&#160;31, 2008. While
    we also require some of our customers to make prepayments, there
    is typically a lag between the time of our prepayment for solar
    wafers and cells and silicon raw materials and the time that our
    customers make prepayments to us.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that our accounts receivable and inventories, two of
    the principal components of our current assets, will continue to
    increase as our net revenues increase. We require prepayments in
    cash between 10% to 30% of the purchase price from some of our
    customers, and require many of them to pay the balance of the
    purchase price by letters of credit at sight or 30&#160;days
    usance prior to delivery. In some cases, we extend short-term
    credit to customers after delivery. The prepayments are recorded
    as current liabilities under advances from customers, and
    amounted to $3.2&#160;million as of December&#160;31, 2006,
    $2.0&#160;million as of December&#160;31, 2007 and
    $3.6&#160;million as of December&#160;31, 2008. Until the
    letters of credit are drawn in accordance with their terms, or
    we collect sales credit, the balance of the purchase price is
    recorded as accounts receivable. As the market demand changes
    and we continue to diversify our geographical markets, we have
    increased and may continue to increase credit term sales to
    creditworthy customers after careful review of the
    customers&#146; credit standings and also acceptance of export
    credit insurance by the China Export Credit Insurance
    Corporation. Inventories have increased significantly due to the
    rapid growth of our operations and business. We kept a high
    level of inventories in order to meet the sales we had forecast
    for the fourth quarter of 2008, but many of the sales we had
    anticipated were cancelled and the materials purchased or goods
    manufactured remained in inventory. Allowance for doubtful
    accounts for accounts receivable and advances to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    58
</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">
    suppliers was $0.4&#160;million as of December&#160;31, 2007 and
    $7.9&#160;million as of December&#160;31, 2008. The increase in
    allowance for doubtful accounts for accounts receivable and
    advances is primarily due to specific allowances that were made
    for major customers and suppliers from whom recoverability is in
    doubt because they had defaulted on payment and had no firm
    repayment schedule or collateral.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth a summary of our cash flows for
    the periods indicated:
</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="67%">&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="6%" 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="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31</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>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>
<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="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" 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: -10pt; margin-left: 10pt">
    Net cash provided by (used in) operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (46,276
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (80,224
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,193
</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">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,770
</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">
    (42,483
</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">
    (125,762
</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">
    Net cash provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    201,356
</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">
    Net increase (decrease) in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,244
</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">
    77,994
</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">
    Cash and cash equivalents at the beginning of the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</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">
&nbsp;
</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">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,667
</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">
    Cash and cash equivalents at the end of the year
</DIV>
</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">
    37,667
</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">
    115,661
</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: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Operating
    Activities</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in operating activities of $80.2&#160;million in
    2007 changed sharply to net cash provided by operating
    activities of $3.2&#160;million in 2008, due in part to a
    decrease in accounts receivable, cash received from derivative
    assets and an increase in accounts payable, partially offset by
    increases in advances to suppliers, inventories and prepayment
    of land use rights. Net cash used in operating activities
    increased from $46.3&#160;million in 2006 to $80.2&#160;million
    in 2007, primarily due to increases in advance payments to
    suppliers of solar wafers as well as the rapid growth of our
    solar module operation and business.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Investing
    Activities</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in investing activities increased from
    $42.5&#160;million in 2007 to $125.8&#160;million in 2008,
    primarily due to our expansion of ingot, wafer and module
    production capacity and acquisition of equity investments. Net
    cash used in investing activities increased from
    $7.8&#160;million in 2006 to $42.5&#160;million in 2007,
    primarily due to our expansion of module production capacity and
    our expansion into internal solar cell manufacturing, a higher
    capital expenditure business.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Financing
    Activities</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by financing activities increased from
    $124.8&#160;million in 2007 to $201.4&#160;million in 2008,
    primarily as a result of proceeds from our follow-on public
    offering of common shares in July 2008 and from long and
    short-term bank borrowings. Net cash provided by financing
    activities increased from $88.3&#160;million in 2006 to
    $124.8&#160;million in 2007, primarily as a result of the
    proceeds from our issuance of $75.0&#160;million principal
    amount convertible notes in December 2007 and short-term
    borrowings.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 and capital
    expenditures for the rest of 2009 under our current market
    guidance. We may, however, require additional cash due to
    changing business conditions or other future developments,
    including any investments or acquisitions we may decide to
    pursue. The availability of commercial loans from Chinese
    commercial banks may also be affected by administrative policies
    of the PRC government, which in turn may affect our plans for
    business expansion. If our existing cash or availability to
    additional capital via bank borrowings are insufficient to meet
    our requirements, we may seek to sell additional equity
    securities or debt securities or borrow from other sources. We
    cannot assure you that financing will be available in the
    amounts we need or on terms acceptable to us, if at all. The
    sale of additional equity securities, including convertible debt
    securities, would dilute our shareholders. The incurrence of
    debt would divert cash for working capital and capital
    expenditures to service debt obligations and could result in
    operating and financial covenants that restrict our operations
    and our ability to pay dividends to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    59
</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">
    our shareholders. If we are unable to obtain additional equity
    or debt financing as required, our business operations and
    prospects may suffer.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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
    Expenditures</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We made capital expenditures of $7.1&#160;million,
    $42.0&#160;million and $104.8&#160;million in 2006, 2007 and
    2008, respectively. Our capital expenditures were used primarily
    to expand our facilities and purchase equipment for the
    expansion of our assembly lines for the production of solar
    modules and to build facilities and purchase equipment for the
    commencement of solar ingot and wafer production and the further
    expansion of our solar cell production. For 2009, we have a
    total capital commitment of $55.7&#160;million.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restricted
    Net Assets</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our PRC subsidiaries are required under PRC laws and regulations
    to make appropriations from net income as determined under
    accounting principles generally accepted in the PRC, or PRC
    GAAP, to non-distributable reserves which include a general
    reserve and a staff welfare and bonus reserve. The general
    reserve is required to be made at not less than 10% of the
    profit after tax as determined under PRC GAAP. The staff welfare
    and bonus reserve is determined by our board of directors. The
    general reserve is used to offset future extraordinary losses.
    Our PRC subsidiaries may, upon a resolution of the board of
    directors, convert the general reserve into capital. The staff
    welfare and bonus reserve is used for the collective welfare of
    the employees of the PRC subsidiaries. These reserves represent
    appropriations of the retained earnings determined under PRC
    law. In addition to the general reserve, our PRC subsidiaries
    are required to obtain approval from the local government
    authorities prior to distributing any registered share capital.
    Accordingly, both the appropriations to general reserve and the
    registered share capital of the our PRC subsidiaries are
    considered as restricted net assets. These restricted net assets
    amounted to $51.6&#160;million, $82.4&#160;million and
    $178.3&#160;million as of December&#160;31, 2006, 2007 and 2008,
    respectively.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Research
    and Development</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We significantly expanded our research and development
    activities in 2008. We opened two new research and development
    centers with
    <FONT style="white-space: nowrap">state-of-the-art</FONT>
    equipment during the year, our solar cell research center and
    our photovoltaic reliability testing center. The solar cell
    research center is focused on the development of new high
    efficiency solar cells and low cost, high efficiency cell
    technology. The photovoltaic reliability testing center is
    focused on PV module and components testing and qualification as
    well as performance and reliability testing, tracking and
    analysis. As of December&#160;31, 2008, we had approximately
    36&#160;employees in research, product development and
    engineering.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our research and development activities have generally
    emphasized the following areas:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    developing new methods and equipment for analysis and quality
    control of incoming materials (such as polysilicon/solar grade
    UMgSi silicon, wafers and 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;
</TD>
    <TD align="left">
    developing new technologies in ingot growth, wafer cutting, cell
    processing and module manufacturing that make use of low-cost
    alternative silicon materials such as solar 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;
</TD>
    <TD align="left">
    improving the conversion efficiency of solar cells and
    developing new cell structures and technologies for high
    conversion efficiency;
</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;
</TD>
    <TD align="left">
    improving manufacturing yield and reliability of solar modules
    and reducing manufacturing costs;
</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;
</TD>
    <TD align="left">
    testing, data tracking and analysis for module performance and
    reliability;
</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;
</TD>
    <TD align="left">
    designing and developing more efficient specialty solar modules
    and products to meet customer requirements;&#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;
</TD>
    <TD align="left">
    silicon reclamation technologies which allow the manufacturing
    of solar cells using low-cost silicon feedstock.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our research and development team, led by Dr.&#160;Shawn Qu, our
    founder, chairman, president and chief executive officer,
    Mr.&#160;Genmao Chen, our director of research and development,
    Dr.&#160;Lingjun Zhang, our general
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    60
</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">
    manager of CSI Cells, and Mr.&#160;Chengbai Zhou, our principal
    technical fellow for solar modules, has extensive experience in
    the solar power industry. Our research and development team
    works closely with our manufacturing team and our suppliers,
    partners and our customers. We have also established
    collaborative research and development relationships with a
    number of companies, universities and research institutes,
    including DuPont, Shanghai Jiaotong University and the
    University of Toronto.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Going forward, we will focus on the following research and
    development initiatives that we believe will enhance our
    competitiveness:
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Solar grade silicon materials technologies and high efficiency
    cell technologies. We began the mass production of solar grade
    silicon crystalline modules, namely
    <FONT style="white-space: nowrap">e-Modules,</FONT>
    in April 2008, and have been working on improving new
    technologies in ingot, wafer, cell and module manufacturing
    using solar grade silicon. We made significant progress in this
    area recently, and the production average efficiency for solar
    grade crystalline cell has increased to 15.0% as of the second
    quarter of 2009 from 13.3% as of mid-2008. With our continuous
    efforts in optimization of solar grade silicon material
    preparation, ingot growth and wafer cutting, as well as cell
    processing, we anticipate additional increases in our solar
    grade silicon cell efficiency, and expect that with our new
    solar grade silicon cell design, our solar grade silicon cell
    could reach conversion efficiency close to the conventional
    multi-crystalline cells in the future. Meanwhile, by using our
    advanced solar cell pilot line and cell analysis equipments, we
    are working to improve regular polysilicon cell efficiency,
    production yield and develop new high efficiency cell structures.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Solar module manufacturing technologies.</I>&#160;&#160;With
    the opening of our Photovoltaic Reliability Testing Center, we
    intend to focus on developing
    <FONT style="white-space: nowrap">state-of-the-art</FONT>
    testing and diagnostic techniques that improve solar module
    production yield, efficiency, performance and durability.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Product development of specialty solar modules and
    products.</I>&#160;&#160;We are expanding our product
    development capabilities for specialty solar modules and
    products to position ourselves for the expected growth in this
    area of the solar power market. For example, we are
    collaborating with a research institute in China to develop a
    concentrator module technology and a glass curtain wall company
    based in China to develop BIPV technology. In 2008, we completed
    a BIPV project in our Luoyang plant. We also supplied BIPV
    modules and other BIPV related design elements for a project for
    the Beijing Olympic Games.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Power system integration and solar application
    products.</I>&#160;&#160;We recently began to explore power
    system integration products and expanded our research and
    development efforts in solar application products. We plan to
    hire additional engineering staff and increase investment in
    these areas.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Silicon reclamation technologies.</I>&#160;&#160;We intend to
    continue to work on technology improvement methods and increase
    our know-how and the efficiency of our silicon reclamation
    program, including increasing scrap silicon recovery yields. We
    are developing new technologies and designing equipment for
    refining certain scrap silicon materials and expanding on the
    types of materials that can be utilized to manufacture solar
    cells.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">D.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Trend
    Information</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than as disclosed elsewhere in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F,</FONT>
    we are not aware of any trends, uncertainties, demands,
    commitments or events that are reasonably likely to have a
    material adverse effect on our net revenues, income,
    profitability, liquidity or capital resources, or that caused
    the disclosed financial information to be not necessarily
    indicative of future operating results or financial conditions.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">E.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Off-balance
    Sheet Arrangements</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not entered into any financial guarantees or other
    commitments to guarantee the payment obligations of third
    parties. We have not entered into any derivative contracts that
    are indexed to our shares and classified as shareholder&#146;s
    equity, or that are not reflected in our consolidated financial
    statements. Furthermore, we do not have any retained or
    contingent interest in assets transferred to an unconsolidated
    entity that serves as credit, liquidity or market risk support
    to such entity. We do not have any variable interest in any
    unconsolidated entity that provides financing, liquidity, market
    risk or credit support to us or that engages in leasing, hedging
    or research and development services with us.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    61
</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">F.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Tabular
    Disclosure of Contractual Obligations</FONT></U></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Contractual
    Obligations and Commercial Commitments</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our contractual obligations and
    commercial commitments as of December&#160;31, 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 -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&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="2%">&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="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" 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="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" 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="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Payment Due by Period</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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Less than<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>More than<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>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1&#160;Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1-3&#160;Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>3-5&#160;Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>5&#160;Years</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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(In thousands of US$)</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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Short-term debt obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    110,665
</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">
    110,665
</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">
    &#151;
</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">
    &#151;
</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">
    &#151;
</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">
    Interest related to short-term
    debt<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,366
</TD>
<TD 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="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,647
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    930
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD 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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Purchase
    obligations<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,613,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    352,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,393,142
</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">
    1,513,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,354,887
</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">
    Convertible
    notes<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,240
</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">
    Other long-term
    borrowing<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,357
</TD>
<TD 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">
    45,357
</TD>
<TD 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: -10pt; margin-left: 10pt">
    Interest related to long-term
    debt<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,279
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,746
</TD>
<TD 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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,780,734
</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">
    469,349
</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">
    1,441,927
</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">
    1,513,236
</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">
    1,356,222
</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>
</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=456 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="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Interest rates range from 2.63% to 7.47% per annum for
    short-term debt.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes commitments to purchase production equipment in the
    amount of $55.7&#160;million and commitments to purchase solar
    cells and silicon raw materials in the amount of
    $4,557.4&#160;million.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Assumes redemption of $1.0&#160;million aggregate principal
    amount of 6.0% convertible senior notes due December&#160;15,
    2017. Assumes none of the convertible senior notes have been
    converted into ordinary shares. The holders of our convertible
    senior notes may require us to repurchase the convertible senior
    notes as early as December 2012. This figure also includes
    interest payable totaling $540,000 until December&#160;5, 2017.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    The other long-term borrowing mainly consists of the following
    items: (i)&#160;commercial loans with China&#146;s Bank of
    Communication&#160;&#151; these loans total $14.6&#160;million,
    are secured and cover a
    <FONT style="white-space: nowrap">two-and-a-half-year</FONT>
    expansion plan (funds are available at various stages and with
    different terms and rates); and (ii)&#160;commercial loans with
    Bank of China&#160;&#151; these loans total $29.3&#160;million,
    are secured and cover a three-year expansion plan (funds are
    available at various stages and with different terms and rates).</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Interest rates range from 7.29% to 7.56% per annum for long-term
    borrowings.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The above table excludes income tax liabilities of
    $8.7&#160;million recorded in accordance with FIN&#160;48,
    because we are unable to reasonably estimate the timing of
    future payments of these liabilities due to uncertainties in the
    timing of the effective settlement of these tax positions. For
    additional information on FIN&#160;48, see the notes to our
    consolidated financial statements, included herein.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than the contractual obligations and commercial
    commitments set forth above, we did not have any long-term debt
    obligations, operating lease obligations, purchase obligations
    or other long-term liabilities as of December&#160;31, 2008.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">G.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Safe
    Harbor</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    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, all of which are largely based on our current
    expectations and projections. The forward-looking statements are
    contained principally in the sections entitled
    &#147;Item&#160;3. Key Information&#160;&#151; D. Risk
    Factors,&#148; &#147;Item&#160;4. Information on the
    Company&#148; and &#147;Item&#160;5. Operating and Financial
    Review and Prospects.&#148; 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;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    62
</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">
    &#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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 &#147;Item&#160;3. Key Information&#160;&#151;
    D. 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 annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In some cases, the forward-looking statements can be identified
    by words or phrases such as &#147;may,&#148; &#147;will,&#148;
    &#147;expect,&#148; &#147;anticipate,&#148; &#147;aim,&#148;
    &#147;estimate,&#148; &#147;intend,&#148; &#147;plan,&#148;
    &#147;believe,&#148; &#147;potential,&#148;
    &#147;continue,&#148; &#147;is/are likely to&#148; or other
    similar expressions. We have based the forward-looking
    statements largely on our current expectations and projections
    about future events and financial trends that we believe may
    affect our financial condition, results of operations, business
    strategy and financial needs. 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</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;
</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;
</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;
</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;
</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;
</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;
</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;
</TD>
    <TD align="left">
    our beliefs and expectations regarding the use of UMgSi and
    solar power products made of this material;
</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;
</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;
</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;
</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;
</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;
</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;
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    also contains data related to the solar power market in several
    countries. These market data, including market data from
    Solarbuzz, include projections 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. 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    63
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The forward-looking statements made in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    relate only to events or information as of the date on which the
    statements are made in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
    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>

<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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;6.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='108'></A><B><I><FONT style="font-family: 'Times New Roman', Times">DIRECTORS,
    SENIOR MANAGEMENT AND EMPLOYEES</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Directors
    and Senior Management </FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding our
    directors and executive officers as of the date of this annual
    report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
</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="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 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="51%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<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</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position/Title</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shawn (Xiaohua) Qu
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    45
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chairman of the Board, President and <BR>
    Chief Executive Officer
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Arthur Chien
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    48
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Director and Chief Financial Officer
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert McDermott
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    67
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Lead Independent Director
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lars-Eric Johansson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    62
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Independent Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael G. Potter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    42
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Independent Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tai Seng Png
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    46
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, Business Integration
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charlotte Xi Klein
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    53
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, Finance and Compliance Officer
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bencheng Li
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    66
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Business Development (China)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Yan Zhuang
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    45
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, Sales and Marketing
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory Spanoudakis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    51
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President, European Sales
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Xiaohu Wang
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    53
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, Ingot and Wafer Operations
</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>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dr.&#160;Shawn (Xiaohua) Qu </I>has served as our chairman,
    president and chief executive officer since founding our company
    in October 2001. Prior to joining us, Dr.&#160;Qu worked at ATS
    from 1998 to 2001, where he performed various responsibilities
    at ATS and at its subsidiaries in the solar power business,
    Matrix and Photowatt International S.A. including acting as
    product engineer, director for silicon procurement, director for
    solar product strategic planning and business development and
    technical vice president (Asia Pacific) of Photowatt
    International S.A. From 1996 to 1998, Dr.&#160;Qu was a research
    scientist at Ontario Power Generation Corp. (formerly Ontario
    Hydro), where he worked as a process leader in the development
    of Spheral
    Solar<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>

    technology, a next-generation solar technology. Prior to joining
    Ontario Hydro, Dr.&#160;Qu was a post-doctorate research fellow
    at the University of Toronto focusing on semiconductor optical
    devices and solar cells. He has published research articles in
    academic journals such as IEEE Quantum Electronics, Applied
    Physics Letter and Physical Review. Dr.&#160;Qu received a
    Ph.D.&#160;degree in material science from the University of
    Toronto in 1995, an M.Sc. degree in physics from University of
    Manitoba in 1990 and a B.Sc. in applied physics from Tsinghua
    University (Beijing, China) in 1986.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Arthur Chien </I>has served as our director and
    chief financial officer since June 2008. Prior to that, he was
    our corporate secretary from February 2008 to May 2009, our vice
    president of finance from September 2007 to June 2008 and an
    independent director from December 2005 to September 2007.
    Mr.&#160;Chien was previously the managing director of Beijing
    Yinke Investment Consulting Co. Ltd., which provides financial
    consulting services and has its own investment projects as well.
    Prior to that, Mr.&#160;Chien was the chief financial officer of
    China Grand Enterprises Inc. for almost 5&#160;years. That
    company is a diversified investment holding company based in
    Beijing, China. Mr.&#160;Chien has also worked in the finance,
    investment and management positions in several companies in
    China, Canada and Belgium including his appointment in 1995 as
    the assistant financial controller of the steel cord division of
    Bekaert Group in Belgium. In 1996, Mr.&#160;Chien took the
    position of chief financial officer of Bekaert China, which
    operated five joint ventures in China. Mr.&#160;Chien graduated
    from the University of Science and Technology of China
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    64
</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">
    with a bachelor of science degree in 1982. He also obtained a
    master&#146;s degree in economics from the University of Western
    Ontario, London, Ontario, Canada in 1989.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Robert McDermott </I>has served as lead independent
    director of our company since August 2006. Mr.&#160;McDermott is
    a partner with McMillan LLP, a business and commercial law firm
    based in Canada. He joined the firm in 1971 and practices
    business law with an emphasis on mergers and acquisitions,
    corporate governance, mining, securities and corporate finance,
    involving both Canadian and cross-border transactions.
    Mr.&#160;McDermott advises boards and special committees of
    public companies in Canada on corporate governance matters as
    well. From 1997 to 2001, he was a director and senior officer of
    Boliden Limited, a mining company listed on the Toronto and
    Stockholm stock exchanges. Mr.&#160;McDermott is a member of the
    Canadian Bar Association, International Bar Association and
    Rocky Mountain Mineral Law Institute. He was admitted to the
    Ontario Bar in Canada in 1968. Mr.&#160;McDermott received his
    juris doctor degree from the University of Toronto and a
    bachelor&#146;s of arts degree from the University of Western
    Ontario.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Lars-Eric Johansson </I>has served as an independent
    director of our company since August 2006. Mr.&#160;Johansson
    has worked in finance and controls positions for more than
    thirty years in Sweden and Canada. He is currently a chief
    executive officer of Ivanhoe Nickel&#160;&#038; Platinum Ltd., a
    Canadian private mining company. From 2004 to 2007,
    Mr.&#160;Johansson was a director and chairperson of the audit
    committee of Harry Winston Diamond Corporation, a specialist
    diamond company with assets in the mining and retail segments of
    the diamond industry. From May 2004 to April 2006, he was an
    executive vice president and the chief financial officer of
    Kinross Gold Corporation, a gold mining company dually listed on
    the Toronto Stock Exchange and the New York Stock Exchange.
    During the period between June 2002 and November 2003,
    Mr.&#160;Johansson was an executive vice president and chief
    financial officer of Noranda Inc., a Canadian mining company
    dually listed on the Toronto Stock Exchange and the New York
    Stock Exchange. Until May 2004, Mr.&#160;Johansson served as a
    special advisor at Noranda Inc. From 1989 to May 2002, he was
    the chief financial officer of Falconbridge Limited, a mining
    and metals company in Canada listed on the Toronto Stock
    Exchange. He has also chaired the audit committee of Golden Star
    Resources Ltd., a gold mining company dually listed on the
    Toronto Stock Exchange and American Stock Exchange, since July
    2006. From 2002 to 2003, he was also a director of Novicor Inc.,
    a company listed on the Toronto Stock Exchange.
    Mr.&#160;Johansson holds an MBA, with a major in finance and
    accounting, from Gothenburg School of Economics in Sweden.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Michael G. Potter </I>has served as an independent
    director of our company since September 2007. Mr.&#160;Potter
    has worked in finance, controlling and audit positions with a
    variety of multinational companies for over 20&#160;years. He is
    currently corporate vice president and chief financial officer
    of Lattice Semiconductor Corporation, a Nasdaq-listed
    semiconductor device company. Prior to that, he was senior vice
    president and chief financial officer of NeoPhotonics
    Corporation, a leading provider of photonic integrated
    circuit-based modules, components and subsystems for use in
    optical communications networks with extensive operations in
    Shenzhen, China. Before joining NeoPhotonics in May 2007, he was
    the senior vice president and chief financial officer of STATS
    ChipPAC, a semiconductor assembly and test services company
    based in Singapore. Before that, he held a variety of executive
    positions at Honeywell Inc. Mr.&#160;Potter is a Chartered
    Accountant and holds a Bachelor of Commerce degree from
    Concordia University, Canada and a Diploma of Accountancy from
    McGill University, Canada.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Executive
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Tai Seng Png </I>has served as vice president of
    business integration since September 2007. Prior to that,
    Mr.&#160;Png was the vice president of operations at Trina Solar
    Ltd., another large solar company based in China, from 2006 to
    2007. Prior to that, he was the general manager of Innovalues
    Precision Limited, a company that mainly engages in precision
    machining of round components in Malaysia, from 2004 through
    2005. From 2003 to 2004, he served as a senior manager in charge
    of product engineering and procurement of Hyflux Aquosus
    (S)&#160;Pte Ltd., a company that mainly engages in water
    treatment in China. From 1999 to 2003, he was a plant manager of
    Flextronics Plastics (Singapore) Pte Ltd, a company that is
    engaged in the manufacturing of electronic products, and later
    became its engineering director. Mr.&#160;Png received his
    diploma from Singapore Polytechnic in 1982.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Ms.&#160;Charlotte Xi Klein </I>has served as our vice
    president of finance since August 2008 and our compliance
    officer since September 2007. She served as our corporate
    controller from February 2007 to 2008. Prior to joining
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    65
</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">
    us, between 2004 and 2007, Ms.&#160;Klein was director of
    accounting and compliance at ARAMARK Corporation, a Fortune
    500&#160;company, and TV Guide Magazine in the United States,
    responsible for financial reporting and successfully
    implementing Sarbanes-Oxley compliance during the first year of
    its applicability. In addition to her corporate reporting
    experience, Ms.&#160;Klein spent eight years in manufacturing
    facilities with progressive job responsibilities from cost
    accountant to plant controller in both Saint-Gobain Corporation
    and Armstrong World Industries. Ms.&#160;Klein holds a
    bachelor&#146;s degree from the Shanghai Teachers University and
    MA and MBA degrees from the Midwestern State University in
    Texas. She is also a member of the AICPA and has been a
    Texas-licensed CPA since 1996.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Bencheng Li </I>has served as our vice president of
    business development (China) since December 2006, prior to which
    he had been the general manager of CSI Luoyang. He joined us in
    June 2003. Mr.&#160;Li was the chairman of Luoyang Single
    Crystalline Silicon Ltd. from 1996 to 2000, and the chairman of
    <FONT style="white-space: nowrap">Sino-American</FONT>
    MCL Electronic Materials Ltd. from 1995 to 2000. From July 1998
    to April 2003, Mr.&#160;Li was the general manager of China
    Shijia Semiconductor Materials Corporation, a semiconductor and
    solar silicon materials manufacturing company in China. In July
    1967, Mr.&#160;Li received his bachelor&#146;s degree in
    radiochemistry from Tsing Hua University in Beijing, China.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Yan Zhuang </I>has served as our vice president of
    sales and marketing since June 2009. He was an independent
    director of our company from September 2007 to June 2009.
    Mr.&#160;Zhuang has worked in corporate branding, sales and
    marketing positions with, or provided consulting services to, a
    variety of multinational companies for over 15&#160;years. He is
    currently the head of Asia of Hands-on Mobile, Inc., a global
    media and entertainment company with Asian operations in China,
    Korea and India. He previously served as the company&#146;s
    senior vice president of business operations and marketing in
    Asia. Before joining Hands-on Mobile, Inc., he held various
    marketing and business operation positions with Motorola Inc.,
    including as its Asia Pacific regional director of marketing
    planning and consumer insight. Prior to that, he was a marketing
    consultant in Canada and China. Mr.&#160;Zhuang holds a Bachelor
    of Electrical Engineering degree from Northern Jiao-Tong
    University, China, an MSc in Applied Statistics from the
    University of Alberta, Canada and an MSc in Marketing Management
    from the University of Guelph, Canada.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Gregory Spanoudakis </I>has served as our president,
    European sales since August 2008. He was our vice president
    (Europe) from 2002 to 2006 and our vice president of
    international sales and marketing since January&#160;2002.
    Mr.&#160;Spanoudakis has been involved in the semiconductor and
    solar power industries for the past 18&#160;years, the last
    6&#160;years of which have been in the solar power industry. He
    was a senior executive with Future Electronics, one of the
    world&#146;s largest distributors of semiconductor components,
    where he headed the international division and the export
    development program from November 1988 to May 1999.
    Mr.&#160;Spanoudakis attended The University of Essex, in
    Colchester, England and the Sir George William University (now
    Concordia University) in Montreal, Canada graduating with a
    bachelor&#146;s degree in business in 1981. In 1987, he received
    his MBA degree with a focus on international business
    development from Concordia University in Montreal, Canada.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mr.&#160;Xiaohu Wang </I>has served as our vice president of
    ingot and wafer operations since January 2009. Prior to that, he
    served as our vice president of China supply chain development
    since December 2006. Mr.&#160;Wang joined us in 2002, initially
    as the manager in charge of imports and exports, procurement,
    quality and operations. Since 2004, Mr.&#160;Wang has been
    deputy general manager of commerce of CSI Solartronics,
    responsible for planning and procurement of all silicon
    material. From May 1989 to January 2001, Mr.&#160;Wang was the
    branch manager of the International Development Group Ltd of
    Hunan Province where he was responsible for the import and
    export of mineral, hardware, textile and chemical products.
    Mr.&#160;Wang was also involved in that company&#146;s
    restructuring from state ownership to shareholder ownership.
    From 1996, Xiaohu was involved in the import and export of
    silicon material and silicon cells. In 1982, Mr.&#160;Wang
    graduated from Nanjing University of Aeronautics and
    Astronautics with a bachelor of science degree.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Duties
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our governing statute, our directors have a duty of
    loyalty to act honestly and in good faith with a view to our
    best interests. Our directors also have a duty to exercise the
    care, diligence and skill that a reasonably prudent
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    66
</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">
    person would exercise in comparable circumstances. A shareholder
    has the right to seek damages if a duty owed by our directors is
    breached. The functions and powers of our board of directors
    include, among others:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    convening shareholders&#146; annual general meetings and
    reporting its work to shareholders at such meetings;
</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;
</TD>
    <TD align="left">
    declaring dividends and authorizing other distributions to
    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;
</TD>
    <TD align="left">
    appointing officers and determining the term of office of
    officers;
</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;
</TD>
    <TD align="left">
    exercising the borrowing powers of our company and mortgaging
    the property of our company;&#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;
</TD>
    <TD align="left">
    approving the issuance of shares.
</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"><!-- TABLE 05 -->

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Compensation
    of Directors and Executive Officers</FONT></U></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; 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
    Remuneration</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our directors and executive officers, in such capacities,
    received aggregate cash remuneration, including salaries,
    bonuses and benefits in kind, from us of approximately
    $1,433,732 in 2008. Cash remuneration, including salaries,
    bonuses and benefits in kind as well as participation in our
    board committees by our directors, paid by our company to our
    directors (including three directors who are also our executive
    officers, one of which resigned in June 2008)&#160;was $730,601
    and to our executive officers (excluding the directors who also
    served as our executive officers) was $703,131 in 2008. In 2008,
    there were six executive officers receiving such cash
    remuneration.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Share-based
    Remuneration</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">2006&#160;Share
    Incentive Plan</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have adopted a share incentive plan, or 2006 Plan, effective
    March 2006, to attract and retain the best available personnel
    for positions of substantial responsibility, provide additional
    incentives to employees, directors and consultants and promote
    the success of our business. The maximum aggregate number of
    common shares which may be issued pursuant to all awards under
    the 2006 Plan, including incentive share option awards, is
    2,330,000. An additional 545,903&#160;shares are available for
    awards other than incentive option shares under the 2006 Plan,
    with an annual increase to be added on the first business day of
    each calendar year equal to the lesser of (x)&#160;one percent
    (1%) of the number of common shares outstanding as of such date,
    and (y)&#160;that number of common shares determined by the
    board or a designated committee.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    67
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Options</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes, as of April&#160;30, 2009, the
    options granted under our 2006 Plan to our directors and
    executive officers and to other individuals, each as a group.
    The options granted in May 2006 vest over a four-year period
    beginning in March 2006. Unless otherwise noted, all other
    options granted vest over a four-year period at each anniversary
    date from the date of grant and exercise prices are equal to the
    average of the trading prices of the common shares for the five
    trading days preceding the date of grant.
</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 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&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="7%" 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="7%" 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="19%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="19%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</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>Common<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 nowrap align="center" valign="bottom">
&nbsp;
</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="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<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 nowrap align="center" valign="bottom">
&nbsp;
</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="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</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="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Date of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Date of<BR>
    </B>
</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</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Granted</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(US$/share)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Grant</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expiration</B>
</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>Directors:</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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shawn (Xiaohua) Qu
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Arthur Chien
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,600
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 8, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 7, 2016
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 1, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 30, 2017
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 24, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 23, 2017
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert McDermott
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,600
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 8, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 7, 2016
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 1, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 30, 2017
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.75
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 26, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 25, 2018
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lars-Eric Johansson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,600
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 8, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 7, 2016
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 1, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 30, 2017
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.75
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 26, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 25, 2018
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael G. Potter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 24, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 23, 2017
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.75
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 26, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 25, 2018
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Directors as a group</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>389,500</B>
</TD>
<TD 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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Executive Officers:</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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" 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">
    Yan Zhuang
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 24, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 23, 2017
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.75
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 26, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 25, 2018
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory Spanoudakis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 29, 2016
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tai Seng Png
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,000
</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">
    7.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 24, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 23, 2017
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Xiaohu Wang
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 29, 2016
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert
    Patterson<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,075
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 29, 2016
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bencheng Li
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,075
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 29, 2016
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charlotte Klein
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,652
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 24, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 23, 2017
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 1, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 28, 2017
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Executive Officers as a group</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>607,207</B>
</TD>
<TD 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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" 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>Other Individuals:</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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Six individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    456,680
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 29, 2016
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,330
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 29, 2016
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    68
</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 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&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="7%" 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="7%" 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="19%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="19%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</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>Common<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 nowrap align="center" valign="bottom">
&nbsp;
</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="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<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 nowrap align="center" valign="bottom">
&nbsp;
</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="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</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="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Date of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Date of<BR>
    </B>
</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</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Granted</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(US$/share)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Grant</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expiration</B>
</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">
    Twenty-eight individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126,170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 29, 2016
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Two individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 30, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 29, 2016
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,075
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 17, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 16, 2016
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Hanbing
    Zhang<SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 28, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 27, 2016
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 8, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 7, 2016
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Three individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 31, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 30, 2016
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Three individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,290
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 1, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 28, 2017
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Two individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,650
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    April 13, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    April 12, 2017
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Five individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 17, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 16, 2017
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Seven individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,556
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 24, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 23, 2017
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Eleven individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,145
</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">
    7.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 24, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 23, 2017
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Six individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 28, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 27, 2018
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</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">
    19.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 3, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 2, 2018
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Two individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,000
</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">
    20.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 31, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 30, 2018
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</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">
    46.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 26, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 25, 2018
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Four individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</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">
    27.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 7, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 6, 2018
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Seventy-two individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    306,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Hanbing
    Zhang<SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,000
</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">
    3.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 12, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 11, 2019
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</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">
    5.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 30, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 29, 2009
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Other individuals as a group</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,495,872</B>
</TD>
<TD 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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" 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: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Vest in two equal installments, the first upon the date of grant
    and the second upon the first year anniversary of the grant date
    so long as the director remains in service.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    All vest immediately upon the date of grant.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The initial public offering price of the common shares.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Exercise price equal to the average of the trading prices of the
    common shares for the 20 trading days preceding the date of
    grant.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Patterson was an executive officer as of April&#160;30,
    2009.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Vest one year after the grant date.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Also vest on accelerated termination.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    The wife of Dr.&#160;Qu, our founder, chairman, president and
    chief executive officer.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    80% of the initial public offering price of the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have also agreed to grant each of our independent directors,
    Robert McDermott, Lars-Eric Johansson and Michael G. Potter,
    options to purchase 23,300 of our common shares immediately
    after each annual shareholder meeting at an exercise price equal
    to the average of the trading price of our common shares for the
    20 trading days ending on such date. These options vest
    immediately.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    69
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restricted
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes, as of April&#160;30, 2009, the
    restricted shares granted under our 2006 Plan to our executive
    officers and to other individuals, each as a group. In 2008, we
    did not grant any restricted shares to our directors. The
    restricted shares granted in May 2006 vested over a two-year
    period beginning in March 2006. The vesting period for all other
    restricted shares are indicated in the notes below.
</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 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&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="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="4%">&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="3%">&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 -->
</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>Restricted<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>
</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>Shares<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>
</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</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Granted</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date of Grant</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date of Expiration</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>Executive Officers:</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory Spanoudakis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    233,000
</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">
    May 30, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 29, 2016
</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">
    Bencheng Li
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</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">
    May 30, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 29, 2016
</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">
    Xiaohu Wang
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,640
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 30, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 29, 2016
</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">
    Robert
    Patterson<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 30, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 29, 2016
</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">
    <B>Executive Officers as a group</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>286,590</B>
</TD>
<TD 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="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Other Individuals:</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Eight individuals as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 30, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 29, 2016
</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">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,330
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 30, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    May 29, 2016
</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">
    One individual
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    June 30, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    June 29, 2016
</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">
    Hanbing
    Zhang<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    July 28, 2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    July 27, 2016
</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">
    <B>Other Individuals as a group</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>279,600 </B>
</TD>
<TD 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 style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Patterson was an executive officer as of April&#160;30,
    2009.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Also vest on accelerated termination.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Vest over a two-year period from the date of grant.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    The wife of Dr.&#160;Qu, our founder, chairman, president and
    chief executive officer.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Vest over a four-year period from the date of grant.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following paragraphs describe the principal terms of our
    2006 Plan.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Types of Awards.</I>&#160;&#160;We may grant the following
    types of awards under our 2006 Plan:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    options to purchase our 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;
</TD>
    <TD align="left">
    restricted shares, which are non-transferable common shares
    without voting or dividend rights, subject to forfeiture upon
    termination of a grantee&#146;s employment or service.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Plan Administration.</I>&#160;&#160;Our board of directors,
    or a committee designated by our board of directors, will
    administer the plan. However, with respect to awards made to our
    non-employee directors, the entire board of directors will
    administer the plan. The committee or the full board of
    directors, as appropriate, will determine the provisions and
    terms and conditions of each award grant.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Award Agreement.</I>&#160;&#160;Awards granted are evidenced
    by an award agreement that sets forth the terms, conditions and
    limitations for each award. In addition, the award agreement
    also specifies whether the option constitutes an incentive share
    option or a non-qualifying stock option.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Eligibility.</I>&#160;&#160;We may grant awards to employees,
    directors and consultants of our company or any of our related
    entities, which include our subsidiaries or any entities in
    which we hold a substantial ownership interest. However, we may
    grant options that are intended to qualify as incentive share
    options only to our employees.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Acceleration of Awards upon Corporate
    Transactions.</I>&#160;&#160;The outstanding awards will
    accelerate upon occurrence of a change-of-control corporate
    transaction where the successor entity does not assume our
    outstanding awards. In such event, each outstanding award will
    become fully vested and immediately exercisable, and the
    transfer restrictions on the awards will be released and the
    repurchase or forfeiture rights will terminate immediately
    before the date of the change-of-control transaction.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    70
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Exercise Price and Term of Awards.</I>&#160;&#160;In general,
    the plan administrator determines the exercise price of an
    option and sets forth the price in the award agreement. The
    exercise price may be a fixed or variable price related to the
    fair market value of our common shares. If we grant an incentive
    share option to an employee who, at the time of that grant, owns
    shares representing more than 10% of the voting power of all
    classes of our share capital, the exercise price cannot be less
    than 110% of the fair market value of our common shares on the
    date of that grant and the share option is exercisable for no
    more than five years from the date of that grant.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term of each award shall be stated in the award agreement.
    The term of an award shall not exceed ten years from the date of
    the grant.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Vesting Schedule.</I>&#160;&#160;In general, the plan
    administrator determines, or the award agreement specifies, the
    vesting schedule.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, we may indemnify a present or former director or
    officer or a person who acts or acted at our request as a
    director or officer or an individual acting in a similar
    capacity, of another corporation or entity of which we are or
    were a shareholder or creditor, and his or her heirs and legal
    representatives, against all costs, charges and expenses,
    including an amount paid to settle an action or satisfy a
    judgment, reasonably incurred by him or her 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, provided that
    the director or officer acted honestly and in good faith with a
    view to the best interests of the corporation or other entity
    and, in the case of a criminal or administrative action or
    proceeding that is enforced by a monetary penalty, had
    reasonable grounds for believing that his or her conduct was
    lawful. Such indemnification may be made in connection with a
    derivative action only with court approval. 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. Our directors and officers are
    covered by directors&#146; and officers&#146; insurance policies.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Board
    Practices </FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, our board held meetings 8 times and passed resolutions
    by unanimous written consent 12 times.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Terms
    of Directors and Executive 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our officers are appointed by and serve at the discretion of the
    board of directors. Our current directors have not been elected
    to serve for a specific term, and, unless re-elected, will hold
    office until the close of our next annual meeting of
    shareholders, or until such time as their successors are elected
    or appointed.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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
    of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has established an audit committee, a
    compensation committee and a nominating and corporate governance
    committee.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our audit committee consists of Messrs.&#160;Lars-Eric
    Johansson, Robert McDermott and Michael G. Potter, and is
    chaired by Mr.&#160;Johansson. Each of Messrs.&#160;Johansson
    and Potter qualify as an &#147;audit committee financial
    expert&#148; as required by the SEC, and thus meeting the
    requirements of the Nasdaq rules for having at least one member
    of the audit committee possessing past employment experience in
    finance or accounting, requisite professional certification in
    accounting, or any other comparable experience or background
    that results in the individual&#146;s financial sophistication,
    including being or having been a chief executive officer, chief
    financial officer or other senior officer with financial
    oversight responsibilities. Each of Messrs.&#160;Johansson,
    McDermott and Potter satisfies the &#147;independence&#148;
    requirements of the NASDAQ corporate governance rules and is
    financially literate as required by the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    71
</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">
    Nasdaq rules. The audit committee oversees our accounting and
    financial reporting processes and the audits of the financial
    statements of our company. The audit committee is responsible
    for, 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    selecting our independent auditors and pre-approving all
    auditing and non-auditing services permitted to be performed by
    our independent auditors;
</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;
</TD>
    <TD align="left">
    reviewing with our independent auditors any audit problems or
    difficulties and management&#146;s response;
</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;
</TD>
    <TD align="left">
    reviewing and approving all proposed related-party transactions,
    as defined in Item&#160;404 of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    under the Securities 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;
</TD>
    <TD align="left">
    discussing the annual audited financial statements with
    management and our independent auditors;
</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;
</TD>
    <TD align="left">
    reviewing major issues as to the adequacy of our internal
    controls and any special audit steps adopted in light of
    material control deficiencies;
</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;
</TD>
    <TD align="left">
    annually reviewing and reassessing the adequacy of our audit
    committee charter;
</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;
</TD>
    <TD align="left">
    such other matters that are specifically delegated to our audit
    committee by our board of directors from time to 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;
</TD>
    <TD align="left">
    meeting separately and periodically with management and our
    internal and independent auditors;&#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;
</TD>
    <TD align="left">
    reporting regularly to the full board of directors.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, our audit committee held meetings seven times and
    passed resolutions by unanimous written consent three times.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation committee consists of Messrs.&#160;Lars-Eric
    Johansson, Robert McDermott and Michael G. Potter, each of whom
    satisfies the &#147;independence&#148; requirements of the
    NASDAQ corporate governance rules and is chaired by
    Mr.&#160;McDermott. Our compensation committee assists the board
    in reviewing and approving the compensation structure of our
    directors and executive officers, including all forms of
    compensation to be provided to our directors and executive
    officers. Members of the compensation committee are not
    prohibited from direct involvement in determining their own
    compensation. Our chief executive officer may not be present at
    any committee meeting during which his compensation is
    deliberated. The compensation committee is responsible for,
    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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    reviewing and approving the compensation arrangements for our
    executive officers and directors;
</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;
</TD>
    <TD align="left">
    reviewing and approving corporate goals and objectives relevant
    to the compensation of our chief executive officer, evaluating
    the performance of our chief executive officer in light of those
    goals and objectives, and setting the compensation level of our
    chief executive officer based on this evaluation;&#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;
</TD>
    <TD align="left">
    overseeing and periodically reviewing the operation of our
    employee benefits plans, including bonus, incentive
    compensation, stock option, pension and welfare plans.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, our compensation committee held meetings five times and
    passed resolutions by unanimous written consent once.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Nominating
    and Corporate Governance Committee</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our nominating and corporate governance committee consists of
    Messrs.&#160;Lars-Eric Johansson and Robert&#160;McDermott, each
    of whom satisfies the &#147;independence&#148; requirements of
    the Nasdaq corporate governance rules, and is chaired by
    Mr.&#160;McDermott. The nominating and corporate governance
    committee assists the board of directors in identifying
    individuals qualified to become our directors and in determining
    the composition of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    72
</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">
    board and its committees. The nominating and corporate
    governance committee is responsible for, 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    identifying and recommending to the board nominees for election
    or re-election to the board, or for appointment to fill any
    vacancy;
</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;
</TD>
    <TD align="left">
    reviewing annually with the board the current composition of the
    board in light of the characteristics of independence, age,
    skills, experience and availability of service to 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>    &#149;&#160;
</TD>
    <TD align="left">
    identifying and recommending to the board the directors to serve
    as members of the board&#146;s committees;
</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;
</TD>
    <TD align="left">
    advising the board periodically with respect to significant
    developments in the law and practice of corporate governance as
    well as our compliance with applicable laws and regulations, and
    making recommendations to the board on all matters of corporate
    governance and on any corrective action to be taken;&#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;
</TD>
    <TD align="left">
    monitoring compliance with our code of business conduct and
    ethics, including reviewing the adequacy and effectiveness of
    our procedures to ensure proper compliance.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, our nominating and corporate governance committee held
    meetings twice.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A director of the corporation who is a party to a material
    contract or transaction or proposed material contract or
    transaction with the corporation, or is a director or officer
    of, or has a material interest in, any person who is party to
    such a contract or transaction, is required to disclose in
    writing or request to have entered into the minutes of meetings
    of directors the nature and extent of his or her interest. A
    director may vote in respect of such contract or transaction
    only if the contract or transaction is: (i)&#160;one relating
    primarily to the remuneration as our director, officer, employee
    or agent; (ii)&#160;one for indemnity or insurance in favor of
    directors and officers; or (iii)&#160;one with an affiliate. In
    2008, we did not enter any such interested transactions other
    than those described in this &#147;Item&#160;6. Directors,
    Senior Management and Employees&#148; and &#147;Item&#160;7.
    Major Shareholders and Related Party Transactions&#160;&#151; B.
    Related Party Transactions.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Remuneration
    and Borrowing</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The directors may determine remuneration to be paid to the
    directors. The compensation committee will assist the directors
    in reviewing and approving the compensation structure for the
    directors. The directors may exercise all the powers of the
    company to borrow money and to mortgage or charge its
    undertaking, property and uncalled capital, and to issue
    debentures or other securities whether outright or as security
    for any debt obligations of our company or of any third party.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Qualification</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is no shareholding qualification for directors.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have entered into employment agreements with each of our
    executive officers. Under our employment agreement with
    Dr.&#160;Qu, our founder, chairman, president and chief
    executive officer and controlling shareholder,
    Dr.&#160;Qu&#146;s employment shall continue unless terminated
    with three months prior written notice. Under our employment
    agreement with Mr.&#160;Gregory Spanoudakis, he may terminate
    his employment with us at any time on three months&#146; prior
    notice. We may terminate either or both of these two employment
    agreements without cause upon the payment of a severance payment
    equal to one month of the officer&#146;s base salary for every
    year of employment with us (up to a maximum of 12&#160;months)
    together with any unpaid compensation accrued up to the date of
    the termination.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Apart from these two employment agreements, all of our other
    employment agreements with our executive officers have a term of
    three years. Under these other employment agreements, we may
    terminate the executive officer&#146;s employment with cause on
    one month&#146;s advance notice, or without cause upon one to
    three months&#146;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    73
</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">
    advance written notice to the executive officer. If we terminate
    the executive officer&#146;s employment without cause, the
    executive officer will be entitled to a severance payment equal
    to three to four months of his then-current base salary. We may
    terminate each of the agreements for cause, at any time, without
    notice or remuneration, for certain acts of the employee,
    including but not limited to a conviction or plea of guilty to a
    felony, negligence or dishonesty to our detriment and failure to
    perform agreed duties after a reasonable opportunity to cure the
    failure.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each executive officer has agreed to hold, both during and after
    the employment agreement expires or is earlier terminated, in
    strict confidence and not to use, except as required in the
    performance of his duties in connection with the employment, any
    confidential information, technical data, trade secrets and
    know-how of our company or the confidential information of any
    third party, including our affiliated entities and our
    subsidiaries, received by us. The executive officers have also
    agreed to disclose in confidence to us all inventions, designs
    and trade secrets which they conceive, develop or reduce to
    practice and to assign all right, title and interest in them to
    us. In addition, each executive officer has agreed to be bound
    by non-competition restrictions set forth in his or her
    employment agreement. Specifically, each executive officer has
    agreed not to, while employed by us and for a period of one to
    three years following the termination or expiration of the
    employment agreement, (i)&#160;approach our clients, customers
    or contacts or other persons or entities introduced to the
    executive officer for the purpose of doing business with such
    person or entities, and will not interfere with the business
    relationship between us and such persons
    <FONT style="white-space: nowrap">and/or</FONT>
    entities; (ii)&#160;assume employment with or provide services
    as a director for any of our competitors, or engage, whether as
    principal, partner, licensor or otherwise, in any business which
    is in direct or indirect competition with our business;
    (iii)&#160;seek, directly or indirectly, to solicit the services
    of any of our employees who is employed by us at the date of the
    executive officer&#146;s termination, or in the year preceding
    such termination; or (iv)&#160;use a name including any word
    used by our company or our affiliates, or the Chinese or English
    equivalent or any similar word, in relation to any trade,
    business or company. Under our employment agreements with our
    executive officers, for purposes of the non-compete clause
    described above, a &#147;competitor&#148; of our company is
    defined as an entity in China or such other territories where we
    carry on 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation committee is required to approve any future
    employment agreements entered into by us for any officers whose
    annual salary and benefits package is greater than $100,000.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Directors&#146;
    Agreements</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have entered into director agreements with our independent
    directors, pursuant to which we make payments to our independent
    directors for their services, including in the form of equity
    awards pursuant to our share incentive plan. See
    &#147;Item&#160;6. Directors, Senior Management and
    Employees&#160;&#151; B. Compensation of Directors and Executive
    Officers.&#148;
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">D.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2006, 2007 and 2008, we had 284, 2,981
    and 3,058&#160;full-time employees, respectively. The following
    table sets forth the number of our employees categorized by our
    areas of operations and as a percentage of our workforce as of
    December&#160;31, 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 -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&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="16%" 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="14%" 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>As of December&#160;31, 2008</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>Number of Employees</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage of Total</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">
    Manufacturing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,742
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89.7
</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">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2
</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">
    Research and development
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    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">
    1.2
</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">
    Sales and marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008, we had 1,470&#160;employees at our
    facilities in Suzhou, 982 at our facilities in Changshu and 594
    at our facilities in Luoyang, and another 12 of our employees
    were based in our Canada, Korea, U.S.&#160;and Germany offices.
    Our employees are not covered by any collective bargaining
    agreement. We consider our relations with our employees to be
    good. From time to time, we also employ part-time employees and
    independent
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    74
</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">
    contractors to support our manufacturing, research and
    development and sales and marketing activities. We plan to hire
    additional employees as we expand.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">E.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Share
    Ownership</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information with respect to the
    beneficial ownership of our common shares as of April&#160;30,
    2009, the latest practicable date, by:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    each of our directors and executive officers;&#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;
</TD>
    <TD align="left">
    each person known to us to own beneficially more than 5% of our
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The calculations in the table below are based on the 35,686,313
    common shares outstanding, excluding 58,250 restricted shares
    that have been granted but have yet to be vested and are subject
    to restrictions on voting and dividend rights and
    transferability, as of April&#160;30, 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beneficial ownership is determined in accordance with the rules
    and regulations of the SEC. In computing the number of shares
    beneficially owned by a person and the percentage ownership of
    that person, we have included shares that the person has the
    right to acquire within 60&#160;days, including through the
    exercise of any option, warrant or other right or the conversion
    of any other security. These shares, however, are not included
    in the computation of the percentage ownership of any other
    person.
</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="9%">&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 -->
</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>Shares Beneficially
    Owned<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></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>Directors and Executive
    Officers<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>:</B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>%</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">
    Shawn (Xiaohua) Qu
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,530,000
</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">
    37.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Arthur
    Chien<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Robert
    McDermott<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Lars-Eric
    Johansson<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Michael G.
    Potter<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Yan
    Zhuang<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,300
</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">
    *
</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">
    Robert
    Patterson<SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Gregory
    Spanoudakis<SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    320,375
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Bencheng
    Li<SUP style="font-size: 85%; vertical-align: top">(10)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Charlotte Xi
    Klein<SUP style="font-size: 85%; vertical-align: top">(11)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,302
</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">
    *
</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">
    Tai Seng
    Png<SUP style="font-size: 85%; vertical-align: top">(12)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</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">
    *
</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">
    Xiaohu
    Wang<SUP style="font-size: 85%; vertical-align: top">(13)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,426
</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">
    *
</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">
    All directors and executive officers as a group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,227,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Principal Shareholders:</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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Columbia Wanger Asset Management,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(14)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</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: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Less than 1%.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Beneficial ownership is determined in accordance with
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    of the General Rules and Regulations under the Securities
    Exchange Act of 1934, as amended, and includes voting or
    investment power with respect to the securities.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The business address of our directors and executive officers is
    199 Lushan Road, Suzhou New District, Suzhou, Jiangsu 215129,
    People&#146;s Republic of China. Unless otherwise stated below,
    all shares beneficially owned by directors and officers
    represent common shares issuable upon exercise of options held.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 71,550 common shares issuable upon exercise of options
    held by Mr.&#160;Chien.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 69,900 common shares issuable upon exercise of options
    held by Mr.&#160;McDermott.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 68,200 common shares issuable upon exercise of options
    held by Mr.&#160;Johansson.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 46,600 common shares issuable upon exercise of options
    held by Mr.&#160;Potter.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 23,300 common shares issuable upon exercise of options
    held by Mr.&#160;Zhuang.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    75
</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: 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">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 16,018 common shares issuable upon exercise of options
    held by Mr.&#160;Patterson. Mr.&#160;Patterson was an executive
    officer as of April&#160;30, 2009.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 87,375 common shares issuable upon exercise of options
    held by Mr.&#160;Spanoudakis.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 16,018 common shares issuable upon exercise of options
    held by Mr.&#160;Li.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (11) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 23,302 common shares issuable upon exercise of options
    held by Ms.&#160;Klein.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (12) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 20,000 common shares issuable upon exercise of options
    held by Mr.&#160;Png.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (13) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 22,426 common shares issuable upon exercise of options
    held by Mr.&#160;Wang.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (14) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 1,800,100 common shares held by Columbia Wanger Asset
    Management, L.P. The principal business address of Columbia
    Wanger is 227&#160;West Monroe Street, Suite&#160;3000, Chicago,
    IL 60606.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of our shareholders has different voting rights from other
    shareholders as of the date of this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
    We are currently not aware of any arrangement that may, at a
    subsequent date, result in a change of control of our company.
</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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;7.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='109'></A><B><I><FONT style="font-family: 'Times New Roman', Times">MAJOR
    SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Major
    Shareholders</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please refer to &#147;Item&#160;6. Directors, Senior Management
    and Employees&#160;&#151; E. Share Ownership.&#148;
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated, the share numbers in this section do
    not take into account any post-transaction share splits.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Issuance,
    Sale and Conversion of Convertible 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2005, we issued convertible notes in the aggregate
    principal amount of $8.1&#160;million to HSBC and JAFCO pursuant
    to a subscription agreement. In March 2006, we issued
    convertible notes to HSBC and JACFO in the aggregate principal
    amount of $3.65&#160;million as part of a second tranche
    subscription and HSBC&#146;s and JAFCO&#146;s option to purchase
    additional convertible notes under the subscription agreement.
    The notes were repayable (i)&#160;on the third anniversary of
    their issuance date or (ii)&#160;upon the occurrence of an event
    of default. The notes were convertible into our common shares at
    the option of the note holders at any time. The notes were
    automatically convertible into our common shares at the then
    effective conversion price upon written approval by note holders
    holding more than 75% of the aggregate principal amount of
    convertible notes subscribed for by HSBC and JAFCO or upon the
    completion of an initial public offering by us. The subscription
    agreement provided that our board of directors would consist of
    up to seven directors including one director nominated by each
    of the two investors. Two directors appointed by HSBC and JAFCO,
    one appointed by each, served on our board of directors from
    December&#160;2005 to August 2006. The appointed directors
    resigned in August 2006 after HSBC and JAFCO converted their
    convertible notes into our common shares in July 2006.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, HSBC and JAFCO agreed in the subscription
    agreement and convertible notes that Dr.&#160;Qu was entitled to
    all of our retained earnings as of February&#160;28, 2006.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Conversion
    of Convertible Notes and Put Option Agreement</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;1, 2006, HSBC and JAFCO provided notices to convert
    all of the outstanding convertible notes into our common shares.
    On that same day, all of the outstanding convertible notes were
    converted at a conversion price of approximately $5.77 per
    common share. Immediately after the conversion, our outstanding
    common shares were immediately split on a 1 for 1.17 basis.
    Common shares issuable pursuant to the Share Incentive Plan or
    issuable upon the exercise of outstanding awards under the Share
    Incentive Plan were not affected by this share split. In
    connection with HSBC&#146;s and JAFCO&#146;s optional conversion
    of the convertible notes, Dr.&#160;Qu entered into a put option
    agreement with HSBC and JAFCO whereby he granted to each of HSBC
    and JAFCO an option to require him to purchase all of the common
    shares held by HSBC and JAFCO immediately after the conversion
    and share split at the same conversion price of the convertible
    notes. Each of HSBC and JAFCO was entitled to exercise its put
    option:
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    76
</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">
    (i)&#160;at any time between March&#160;31, 2007 to
    April&#160;10, 2007 if we had not completed an initial public
    offering on or before March&#160;31, 2007; or (ii)&#160;upon the
    occurrence and continuance of an event of default. In connection
    with the put option agreement, Dr.&#160;Qu entered into share
    pledging agreements with HSBC and JAFCO under which he pledged
    1,568,826 and 809,717 of our common shares to HSBC and JAFCO,
    respectively, as continuing collateral security for his
    obligations under the put option agreement. The put option
    terminated upon the completion of our initial public offering in
    November 2006.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Retained
    Earnings</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the conversion of the convertible notes into our common
    shares, HSBC and JAFCO acknowledged and agreed that
    Dr.&#160;Qu&#146;s right to our retained earnings as of
    February&#160;28, 2006 under the convertible notes would remain
    in effect. In July 2006, HSBC, JAFCO and Dr.&#160;Qu agreed that
    all of the rights and obligations of the parties with respect to
    our retained earnings as of February&#160;28, 2006 were fully
    satisfied and discharged upon the completion of the following
    actions in July 2006: (i)&#160;the transfer to Dr.&#160;Qu of
    30,761 and 15,877 common shares from HSBC and JAFCO,
    respectively; and (ii)&#160;the issuance under our Share
    Incentive Plan of 50,000 restricted shares and options to
    purchase 20,000 common shares at an exercise price of US$10.00
    per common share, both with vesting periods of four years from
    the date of grant, to Ms.&#160;Hanbing Zhang, the wife of
    Dr.&#160;Qu.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Investment
    Agreement</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our issuance and sale of convertible notes,
    we entered into an investment agreement, dated November&#160;30,
    2005, with HSBC, JAFCO and Dr.&#160;Qu. Under the investment
    agreement, HSBC and JAFCO were granted certain rights, including
    with respect to any proposed share transfers by Dr.&#160;Qu,
    including the right of first refusal to purchase such common
    shares and the right of co-sale to sell their common shares
    alongside the proposed share transfer. In addition, they had
    preemptive rights with respect to any issuance of new securities
    by us with certain exceptions. These rights did not apply to the
    initial public offering, and the investment agreement terminated
    automatically upon the completion of our initial public offering
    in November 2006.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2006, ATS entered into a joinder agreement to the
    investment agreement with us, Dr.&#160;Qu, HSBC and JAFCO. Under
    the joinder agreement, ATS was granted certain rights, including
    with respect to any proposed share transfers by Dr.&#160;Qu,
    including the right of first refusal to purchase such shares and
    the right of co-sale to sell its shares alongside the proposed
    share transfer. In addition, ATS had preemptive rights with
    respect to any issuance of new securities by us with certain
    exceptions. These rights did not apply to an initial public
    offering, and the joinder agreement terminated along with the
    investment agreement automatically upon the completion of our
    initial public offering in November 2006. ATS was also granted
    observer status on the board of directors. This right terminated
    upon the completion of our initial public offering in November
    2006.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights Agreements with HSBC, JAFCO and ATS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We granted HSBC and JAFCO customary registration rights. Set
    forth below is a description of the registration rights granted
    to HSBC and JAFCO.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Demand Registration Rights.</I>&#160;&#160;At any time
    commencing six months after the initial public offering, holders
    of at least 25% of the registrable securities had the right to
    demand that we file a registration statement covering the offer
    and sale of their securities. However, we were not obligated to
    effect any such demand registration if we had within the twelve
    month period preceding the demand already effected two or more
    demand registrations or
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    or <FONT style="white-space: nowrap">S-3</FONT>
    registrations. We had the right to defer the filing of a
    registration statement for up to 120&#160;days if our board of
    directors determines in good faith that there is a valid
    business reason to delay the filing. We were not obligated to
    effect such demand registrations on more than three occasions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    Registration Rights.</I>&#160;&#160;Upon our becoming eligible
    to use
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    or <FONT style="white-space: nowrap">S-3,</FONT>
    holders of at least 75% of the registrable securities had the
    right to request that we file a registration statement under
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    or <FONT style="white-space: nowrap">S-3</FONT> if
    the aggregate amount of securities to be sold under the
    registration statement is not less than US$1.0&#160;million.
    Such requests for registrations were not counted as demand
    registrations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    77
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Piggyback Registration Rights.</I>&#160;&#160;If we proposed
    to file a registration statement with respect to an offering for
    our own account or for the account of any person that is not a
    holder of registrable securities, we had to offer holders of
    registrable securities the opportunity to include their
    securities in the registration statement, other than pursuant to
    a registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-4,</FONT>
    <FONT style="white-space: nowrap">S-4</FONT> or
    <FONT style="white-space: nowrap">S-8,</FONT> or a
    registration statement in connection with any demand or
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    registration initiated by the holder(s) of registrable
    securities. Such requests for registrations were not counted as
    demand registrations.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expenses of Registration.</I>&#160;&#160;We were to pay all
    expenses relating to any demand, piggyback or
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    registration, except that holders of registrable securities were
    to bear the expense of any underwriting discounts or commission
    relating to registration and sale of their shares.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2006, we also granted registration rights to ATS. The
    registration rights granted to ATS were substantially similar as
    that granted to HSBC and JAFCO, except that we were not
    obligated to effect a demand registration of ATS on more than
    two occasions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Termination of Registration Rights
    Agreements.</I>&#160;&#160;The registration rights of HSBC,
    JAFCO and ATS are no longer in effect as of the date of this
    annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consultancy
    Agreements</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We paid consultancy fees pursuant to a non-written agreement, on
    a monthly basis, to a consulting company owned by Robert
    Patterson, our former president of Canadian Solar
    (USA)&#160;Inc., prior to his joining us as an officer in
    January 2006. Under the agreement, Mr.&#160;Patterson provided
    project consulting services to us, in particular in connection
    with our large-scale CIDA projects, for 40&#160;hours per month
    with a minimum retainer of C$2,000 per month. For additional
    work beyond the initial period and minimum retainer,
    Mr.&#160;Patterson was paid on an hourly basis. We terminated
    the consulting agreement with Mr.&#160;Patterson&#146;s company
    in December 2005. In 2005 and 2006, we paid consulting fees to
    Mr.&#160;Patterson&#146;s consulting company in the amount of
    C$60,495 and nil, respectively. We paid all outstanding amounts
    in the first quarter of 2006.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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
    Loans</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dr.&#160;Qu made loans to us from time to time during 2006 and
    2007. These loans were unsecured, interest free and had no fixed
    repayment term. As of December&#160;31, 2006 and 2007 these
    loans amounted to $101,489 and $5,615, respectively. These loans
    were settled as of March&#160;31, 2008. In June 2008,
    Dr.&#160;Qu made a loan to us of $30.0&#160;million. This loan
    was unsecured, bore interest at the rate of 7% per annum and had
    no fixed repayment term. This loan was repaid in full before
    December&#160;31, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Guarantees
    and Share Pledges</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May and September 2006, Dr.&#160;Qu provided counter
    guarantees to a third-party guarantor over our short-term loan
    facilities from Industrial Commercial Bank of China and Bank of
    Communications totaling RMB80&#160;million. We repaid all
    amounts outstanding under the loan facilities in January 2007 at
    the expiration of their terms, and the counter-guarantees
    provided by Dr.&#160;Qu terminated.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March and April 2007, Dr.&#160;Qu fully guaranteed a one-year
    RMB39&#160;million loan facility from the Construction Bank of
    China to CSI Solartronics. In June 2007, Dr.&#160;Qu also fully
    guaranteed a one-year $4.0&#160;million loan facility from the
    Bank of Communications to CSI Manufacturing. Both of these loan
    facilities expire 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June and November 2007, CSI Solartronics fully guaranteed
    loan facilities made available to CSI Manufacturing by the Bank
    of Communications and by China Everbright Bank, totaling
    $4.0&#160;million and $3.4&#160;million, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2007, CSI Manufacturing guaranteed a RMB30&#160;million
    loan facility from the Bank of Communications to CSI Luoyang.
    The loan facility expired 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2007, CSI Manufacturing fully guaranteed a
    RMB20&#160;million loan facility from the Industrial Commercial
    Bank of China to CSI Solartronics. With respect to other
    guarantees, the Changshu Industry Public Ownership Managing and
    Investing Corporation and the Property Managing and Investing
    Corporation,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    78
</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">
    Xinzhuang, Changshu, fully guaranteed a RMB39&#160;million loan
    facility from the China Construction Bank to CSI Solartronics.
    Both of these loan facilities expired 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In July 2007, Canadian Solar Inc. fully guaranteed a
    $20&#160;million three-year syndicate loan facility from the
    Bank of Communications and the Industrial Commercial Bank of
    China to CSI Manufacturing.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2007, Canadian Solar Inc. guaranteed a
    $20&#160;million three-year syndicate loan facility from the
    Industrial Commercial Bank of China and the Bank of
    Communications to CSI Cells that was secured by the land use
    rights and buildings of CSI Cells.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March, June and August 2008, CSI Cells fully guaranteed
    one-year loan facilities made available to CSI Luoyang by the
    Bank of Communications, the Bank of Luoyang and the Bank of
    China, totaling RMB60&#160;million, RMB30&#160;million and
    RMB30&#160;million, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2008, CSI Cells fully guaranteed a
    <FONT style="white-space: nowrap">two-and-a-half-year</FONT>
    loan facility of RMB140&#160;million and a
    <FONT style="white-space: nowrap">three-year</FONT>
    loan facility of RMB200&#160;million made available to CSI
    Luoyang by the Bank of Communications and the Bank of China,
    respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March and April 2008, Dr.&#160;Qu, Canadian Solar Inc. and
    CSI Cells jointly guaranteed a one-year RMB39&#160;million loan
    facility from the Construction Bank of China to CSI
    Solartronics. The loan facility expires in 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2008, CSI Advanced and CSI Cells jointly guaranteed a
    one-year RMB60&#160;million loan facility from the China Citic
    Bank to CSI Solartronics. The loan facility expires in 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2008, CSI Manufacturing fully guaranteed a
    RMB100&#160;million one-year loan facility from the Agricultural
    Bank of China to CSI Cells.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Item&#160;6.C., &#147;Item&#160;6. Directors, Senior
    Management and Employees&#160;&#151; C. Board
    Practices&#160;&#151; Employment Agreements.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Equity
    Incentive Plan</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Item&#160;6.B., &#147;Item&#160;6. Directors, Senior
    Management and Employees&#160;&#151; B. Compensation of
    Directors and Executive Officers&#160;&#151; Share-based
    Remuneration&#160;&#151; 2006&#160;Share Incentive Plan.&#148;
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Interests
    of Experts and Counsel</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;8.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='110'></A><B><I><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    INFORMATION</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statements and Other Financial Information</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have appended audited consolidated financial statements filed
    as part of this annual report.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Legal
    and Administrative Proceedings</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2002, 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 president of European sales,
    Gregory&#160;Spanoudakis, and ATS. ICP Global contends that
    Mr.&#160;Spanoudakis, who was previously employed by ICP Global,
    misappropriated its proprietary and commercial business
    opportunity to sell solar-powered car battery chargers to a
    prospective customer, Volkswagen Mexico, by directing that
    opportunity to its competitor ATS. In August 2003, ICP Global
    amended its 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 that business opportunity
    away from ICP Global to us, as purportedly evidenced by our
    selling of car battery chargers to Volkswagen Mexico. ICP
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    79
</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">
    Global claims damages consisting of an accounting of all profits
    obtained by the defendants as a result of any misappropriated
    business opportunity. In its amended complaint, ICP Global
    claims that the business opportunity could have represented
    sales of up to $3.0&#160;million.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the parties have conducted some basic and minimal
    discovery, there has been no meaningful discovery, court filings
    or communications from the plaintiff on this matter since early
    2004. We will continue to defend our rights vigorously if ICP
    Global decides to move forward with this action. Furthermore, we
    believe that the outcome of the action, even if adversely
    determined, will not have a material adverse effect on our
    business or 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In April 2009, CSI Manufacturing instructed eighty-three
    employees to temporarily support production at its factory in
    Changshu. The employees did not comply and were absent from work
    for three days. CSI Manufacturing subsequently terminated the
    labor contract for each of these employees on the grounds that
    they were in violation of corporate internal rules. Fifty-eight
    of these eighty-three employees then filed an arbitration notice
    with the Labor Dispute Arbitration Committee of the High-tech
    Zone and Huqiu District in Suzhou seeking compensation for
    termination of labor contracts, for termination of labor
    contracts without advance notice, and for losses caused by the
    illegal termination of labor contracts. The Labor Dispute
    Arbitration Committee has accepted their filings and has
    scheduled arbitration hearings for sometime in June 2009. Our
    management team is prepared for the arbitration hearings but is
    also jointly with local labor authorities making every effort to
    demonstrate to the local labor authority that CSI
    Manufacturing&#146;s instruction to the employees did not
    violate relevant labor laws and regulations and that CSI
    Manufacturing lawfully terminated the labor contracts of these
    employees. However, we cannot assure you that the labor dispute
    arbitration committee will find in our favor. If the
    employees&#146; demands are sustained by the Labor Dispute
    Arbitration Committee, we may incur costs of approximately
    $0.15&#160;million, which may have an adverse effect on our
    results of operation.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividend
    Policy</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: 4%; 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 declare or pay any cash dividends on our common
    shares in the foreseeable future. We currently intend to retain
    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: 4%; 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. 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>

<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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Significant
    Changes</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Between January&#160;1, 2009 and April&#160;30, 2009, an
    additional 202,229 options granted under our 2006&#160;Share
    Incentive Plan vested.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as described above, we have not experienced any
    significant changes since the date of our audited consolidated
    financial statements included in this annual report.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    80
</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;9.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='111'></A><B><I><FONT style="font-family: 'Times New Roman', Times">THE
    OFFER AND LISTING</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Offering
    and Listing Details</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common shares have been listed on the NASDAQ under the
    symbol &#147;CSIQ&#148; since November&#160;9, 2006. The
    following table sets forth the high and low trading prices for
    our common shares on the NASDAQ for the periods indicated.
</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>Trading Price</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>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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Annual Highs and Lows</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: 20pt">
    2006 (from November&#160;9, 2006)
</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: 20pt">
    2007
</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">
    6.50
</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">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51.80
</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">
    3.11
</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">
    <B>Quarterly Highs and Lows</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: 20pt">
    First Quarter 2007
</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">
    8.72
</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">
    Second Quarter 2007
</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">
    8.78
</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">
    Third Quarter 2007
</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">
    6.50
</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">
    Fourth Quarter 2007
</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">
    8.67
</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">
    First Quarter 2008
</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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Second Quarter 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51.80
</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">
    21.15
</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">
    Third Quarter 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.22
</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">
    16.74
</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">
    Fourth Quarter 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.11
</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">
    First Quarter 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.49
</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">
    3.00
</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">
    <B>Monthly Highs and Lows</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">
    <B>2008</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: 20pt">
    December
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.95
</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">
    4.15
</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>2009</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: 20pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.49
</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">
    4.16
</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">
    5.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.50
</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">
    March
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</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: 20pt">
    April
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.49
</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">
    5.44
</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">
    May
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.25
</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">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    June (through June 4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.65
</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">
    12.00
</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: 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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Plan
    of Distribution</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Markets</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common shares have been listed on the Nasdaq Global Market
    since November&#160;9, 2006 under the symbol &#147;CSIQ.&#148;
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">D.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Selling
    Shareholders</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">E.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Dilution</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    81
</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">F.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Expenses
    of the Issue</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;10.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='112'></A><B><I><FONT style="font-family: 'Times New Roman', Times">ADDITIONAL
    INFORMATION</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Share
    Capital</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Memorandum
    and Articles of Association</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We incorporate by reference into this annual report the
    description of our Articles of Continuance, as amended,
    contained in our F-1 registration statement (File
    <FONT style="white-space: nowrap">No.&#160;333-138144),</FONT>
    as amended, initially filed with the Commission on
    October&#160;23, 2006.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Material
    Contracts</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not entered into any material contracts other than in
    the ordinary course of business and other than those described
    in &#147;Item&#160;4. Information on the Company&#148; or
    elsewhere in this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">D.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Exchange
    Controls</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Item&#160;4. Information on the Company&#160;&#151; B.
    Business Overview&#160;&#151; Government Regulation&#160;&#151;
    Foreign Currency Exchange&#148; and &#147;Item&#160;4.
    Information on the Company&#160;&#151; B. Business
    Overview&#160;&#151; Government Regulation&#160;&#151; Dividend
    Distribution.&#148;
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">E.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Taxation</FONT></U></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Material
    Canadian Federal Tax Considerations</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary is of the material Canadian federal tax
    implications applicable to a holder (a
    &#147;U.S.&#160;Holder&#148;) who holds our common shares (the
    &#147;Common Shares&#148;) and who, at all relevant times, for
    purposes of the Income Tax Act (Canada) (the &#147;Canadian Tax
    Act&#148;) (i)&#160;has not been, is not and will not be
    resident (or deemed resident) in Canada at any time while such
    U.S.&#160;Holder has held or holds the Common Shares;
    (ii)&#160;holds the Common Shares as capital property;
    (iii)&#160;deals at arm&#146;s length with and is not affiliated
    with us; (iv)&#160;does not use or hold, and is not deemed to
    use or hold, the Common Shares in the course of carrying on a
    business in Canada; (v)&#160;did not acquire the Common Shares
    in respect of, in the course of or by virtue of employment with
    our company; (vi)&#160;is not a financial institution, specified
    financial institution, partnership or trust as defined in the
    Canadian Tax Act; (vii)&#160;is a resident of the United States
    for purposes of the Canada-United States Income Tax Convention
    (1980), as amended (the &#147;Convention&#148;); and
    (viii)&#160;has not, does not and will not have a fixed base or
    permanent establishment in Canada within the meaning of the
    Convention at any time while such U.S.&#160;Holder has held or
    holds the Common Shares. Special rules, which are not addressed
    in this summary, may apply to a U.S.&#160;Holder that is a
    &#147;registered non-resident insurer&#148; or &#147;authorized
    foreign bank&#148;, as defined in the Canadian Tax Act, carrying
    on business in Canada and elsewhere.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is based on the current provisions of the Canadian
    Tax Act, and the regulations thereunder, the Convention, and
    counsel&#146;s understanding of the published administrative
    practices and policies of the CRA, all in effect as of the date
    of this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
    This summary takes into account all specific proposals to amend
    the Canadian Tax Act or the regulations thereunder publicly
    announced by or on behalf of the Minister of Finance (Canada)
    prior to the date of this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
    No assurances can be given that such proposed amendments will be
    enacted in the form proposed, or at all. This summary is not
    exhaustive of all potential Canadian federal tax consequences to
    a U.S.&#160;Holder and does not take into account or anticipate
    any other changes in law or administrative practices, whether by
    judicial, governmental or legislative action or decision, nor
    does it take into account provincial, territorial or foreign tax
    legislation or considerations, which may differ from the
    Canadian federal tax considerations described herein.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    82
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary assumes that we are a resident of Canada for
    purposes of the Canadian Tax Act. The Canada-China Income Tax
    Convention coupled with the PRC&#146;s new income tax law may
    affect this assumption. In the event that we are consequently
    determined to be a resident of China and not a resident of
    Canada, U.S.&#160;Holders should refer to the discussion under
    &#147;United States Federal Income Taxation&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>TAX MATTERS ARE VERY COMPLICATED AND THE CANADIAN FEDERAL TAX
    CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF COMMON
    SHARES WILL DEPEND ON THE SHAREHOLDER&#146;S PARTICULAR
    SITUATION. THIS SUMMARY IS NOT INTENDED TO BE A COMPLETE
    ANALYSIS OF OR DESCRIPTION OF ALL POTENTIAL CANADIAN FEDERAL TAX
    CONSEQUENCES, AND SHOULD NOT BE CONSTRUED TO BE, LEGAL, BUSINESS
    OR TAX ADVICE DIRECTED AT ANY PARTICULAR HOLDER OR PROSPECTIVE
    PURCHASER OF COMMON SHARES. ACCORDINGLY, HOLDERS OR PROSPECTIVE
    PURCHASERS OF COMMON SHARES SHOULD CONSULT THEIR OWN TAX
    ADVISORS FOR ADVICE WITH RESPECT TO THE CANADIAN FEDERAL TAX
    CONSEQUENCES OF AN INVESTMENT IN COMMON SHARES BASED ON THEIR
    PARTICULAR CIRCUMSTANCES.</B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amounts paid or credited, or deemed under the Canadian Tax Act
    to be paid or credited, on account or in lieu of payment of, or
    in satisfaction of, dividends to a U.S.&#160;Holder that is a
    beneficial owner of Common Shares will be subject to Canadian
    non-resident withholding tax at the reduced rate of 15% under
    the Convention. This rate is further reduced to 5% in the case
    of a U.S.&#160;Holder that is a beneficial owner of Common
    Shares and is a company for purposes of the Convention that owns
    at least 10% of our voting shares at the time the dividend is
    paid or deemed to be paid. Under the Convention, dividends paid
    or credited to certain religious, scientific, literary,
    educational or charitable organizations and certain pension
    organizations that are resident in the United States and that
    have complied with certain administrative procedures may be
    exempt from Canadian withholding tax.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Our Common Shares</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A U.S.&#160;Holder will not be subject to tax under the Canadian
    Tax Act in respect of any capital gain realized on the
    disposition or deemed disposition of the Common Shares unless,
    at the time of disposition, the Common Shares constitute
    &#147;taxable Canadian property&#148; of the U.S.&#160;Holder
    for the purposes of the Canadian Tax Act. The Common Shares will
    not constitute &#147;taxable Canadian property&#148; to a
    U.S.&#160;Holder provided that (i)&#160;the Common Shares are,
    at the time of disposition, listed on a designated stock
    exchange for purposes of the Canadian Tax Act (which currently
    includes Nasdaq); and (ii)&#160;at no time during the
    <FONT style="white-space: nowrap">60-month</FONT>
    period immediately preceding the disposition of the Common
    Shares did the U.S.&#160;Holder, persons with whom the
    U.S.&#160;Holder did not deal at arm&#146;s length, or the
    U.S.&#160;Holder together with such persons, own 25% or more of
    the issued shares of any class or series of our capital stock.
    Provided the Common Shares are listed on Nasdaq or another
    designated stock exchange at the time of a disposition thereof,
    the preclearance provisions of the Canadian Tax Act will not
    apply to the disposition. If the Common Shares are not so held
    at the time of disposition, preclearance and post-closing
    notification procedures as set out in the Canadian Tax Act will
    apply.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Convention, even if the Common Shares constitute
    &#147;taxable Canadian property&#148; of a particular
    U.S.&#160;Holder, any capital gain realized on the disposition
    of the Common Shares by the U.S.&#160;Holder generally will be
    exempt from tax under the Canadian Tax Act, unless, at the time
    of disposition, the Common Shares derive their value principally
    from real property situated in Canada within the meaning of the
    Convention.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">United
    States Federal Income Taxation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion describes the material
    U.S.&#160;federal income tax consequences to U.S.&#160;Holders
    (defined below) under present law of an investment in our common
    shares. This summary applies only to investors that hold our
    common shares as capital assets and that have the
    U.S.&#160;dollar as their functional currency. This discussion
    is based on the tax laws of the United States as in effect on
    the date of this annual report and on U.S.&#160;Treasury
    regulations in effect or, in some cases, proposed, as of the
    date of this annual report, as well as judicial
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    83
</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">
    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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion does not deal with the tax consequences
    to any particular investor or to persons in special tax
    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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    banks;
</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;
</TD>
    <TD align="left">
    certain financial institutions;
</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;
</TD>
    <TD align="left">
    regulated investment 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;
</TD>
    <TD align="left">
    real estate investment trusts;
</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;
</TD>
    <TD align="left">
    insurance 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;
</TD>
    <TD align="left">
    broker dealers;
</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;
</TD>
    <TD align="left">
    U.S.&#160;expatriates;
</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;
</TD>
    <TD align="left">
    traders that elect to mark to 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;
</TD>
    <TD align="left">
    tax-exempt 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;
</TD>
    <TD align="left">
    persons liable for alternative minimum tax;
</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;
</TD>
    <TD align="left">
    persons holding a common share as part of a straddle, hedging,
    constructive sale, conversion or integrated transaction;
</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;
</TD>
    <TD align="left">
    persons that actually or constructively own 10% or more of our
    voting stock;
</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;
</TD>
    <TD align="left">
    persons who acquired common shares pursuant to the exercise of
    any employee share option or otherwise as compensation;&#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;
</TD>
    <TD align="left">
    persons holding common shares through partnerships or other
    pass-through entities for U.S.&#160;federal income tax purposes.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>U.S.&#160;HOLDERS 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 AND LOCAL
    AND FOREIGN TAX CONSEQUENCES TO THEM OF THE PURCHASE, OWNERSHIP
    AND DISPOSITION OF 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The discussion below of the U.S.&#160;federal income tax
    consequences to &#147;U.S.&#160;Holders&#148; will apply if you
    are a beneficial owner of common shares and you are, 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</TD>
    <TD align="left">
    a corporation (or other entity taxable as a corporation)
    organized under the laws of the United States, any State or the
    District of Columbia;
</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;
</TD>
    <TD align="left">
    an estate whose income 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;
</TD>
    <TD align="left">
    a trust that (1)&#160;is subject to the supervision of a court
    within the United States and the control of one or more
    U.S.&#160;persons or (2)&#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: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are a partner in partnership or other entity taxable as a
    partnership that holds common shares, your tax treatment will
    depend on your status and the activities of the partnership.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Dividends
    and Other Distributions on the Common Shares</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 or PRC taxes withheld therefrom) will be included
    in the U.S.&#160;Holder&#146;s gross income as foreign
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    84
</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">
    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 currently, and
    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: 4%; 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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain limitations, Canadian and PRC 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
    the PRC or under the income tax treaty between the United States
    and Canada or the income tax treaty between the United States
    and the PRC, 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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Dispositions
    of Common Shares</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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. 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    However, in the event we are deemed to be a Chinese
    &#147;resident enterprise&#148; under PRC tax law, we may be
    eligible for the benefits of the income tax treaty between the
    United States and the PRC. Under that treaty, if PRC tax were to
    be imposed on any gain from the disposition of the common
    shares, the gain may be treated as PRC source income.
    U.S.&#160;Holders should consult their tax advisors regarding
    the creditability of any PRC tax.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    85
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Passive
    Foreign Investment Company</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, 2008.
    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>
    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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    at least 75% of its gross income is passive income,&#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;
</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: 4%; 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: 4%; 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: 4%; 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</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;
</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;
</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: 4%; 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    86
</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">
    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 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: 4%; 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: 4%; 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 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: 4%; 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: 4%; 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 the ownership and
    disposition of common shares.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting and Backup Withholding</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends on common shares and the proceeds of a sale or
    redemption of a common share may 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: 4%; 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>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">F.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Dividends
    and Paying Agents</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">G.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Statement
    by Experts</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    87
</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" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">H.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Documents
    on Display</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have previously filed with the Commission our registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;F-1,</FONT>
    initially filed on October&#160;23, 2006 (Registration Number
    <FONT style="white-space: nowrap">333-138144).</FONT>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to the periodic reporting and other informational
    requirements of the Securities Exchange Act of 1934, as amended,
    or the Exchange Act. Under the Exchange Act, we are required to
    file reports and other information with the SEC. Specifically,
    we are required to file annually a
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    no later than six months after the close of each fiscal year,
    which is December&#160;31. Copies of reports and other
    information, when so filed, may be inspected without charge and
    may be obtained at prescribed rates at the public reference
    facilities maintained by the Securities and Exchange Commission
    at 100&#160;F&#160;Street, N.E., Room&#160;1580,
    Washington,&#160;D.C. 20549. The public may obtain information
    regarding the Washington,&#160;D.C. Public Reference Room by
    calling the Commission at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    The SEC also maintains a web site at www.sec.gov that contains
    reports, proxy and information statements, and other information
    regarding registrants that make electronic filings with the SEC
    using its EDGAR system. As a foreign private issuer, we are
    exempt from the rules under the Exchange Act prescribing the
    furnishing and content of quarterly reports and proxy
    statements, and 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our financial statements have been prepared in accordance with
    U.S.&#160;GAAP.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will furnish our shareholders with annual reports, which will
    include a review of operations and annual audited consolidated
    financial statements prepared in conformity with U.S.&#160;GAAP.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">I.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Subsidiary
    Information</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a listing of our subsidiaries, see
    &#147;Item&#160;4.&#160;&#160;Information on the
    Company&#160;&#151; C. Organizational Structure.&#148;
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;11.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='113'></A><B><I><FONT style="font-family: 'Times New Roman', Times">QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></I></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Foreign
    Exchange Risk</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial portion of our sales is currently denominated in
    Euros, with the remainder in Renminbi and U.S.&#160;dollars,
    while a substantial portion of our costs and expenses is
    denominated in U.S.&#160;dollars and Renminbi. Therefore,
    fluctuations in currency exchange rates could have a significant
    impact on our financial stability due to a mismatch among
    various foreign currency-denominated sales and costs.
    Fluctuations in exchange rates, particularly between the
    U.S.&#160;dollar, Renminbi and the Euro, affect our gross and
    net profit margins and could result in foreign exchange and
    operating losses. Our exposure to foreign exchange risk
    primarily relates to currency gains or losses resulting from
    timing differences between signing of sales contracts and
    settling of these contracts. As of December&#160;31, 2008, we
    held $57.2&#160;million in accounts receivable, of which
    $52.0&#160;million were denominated in Euro. Assuming a 10%
    depreciation of the Euro against the U.S.&#160;dollar, our
    accounts receivable would have decreased by $5.2&#160;million to
    $52.0&#160;million as of December&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Due to the depreciation of Euro against the U.S.&#160;dollar in
    2008, we recorded a net foreign exchange loss of
    $20.1&#160;million. In 2008, we began to hedge our Euro exposure
    against the U.S.&#160;dollar using single put and call collars
    and forward contracts, and we were able to mitigate a
    substantial portion, but not all, of our exchange rate losses
    for 2008 in this way. We recorded a net foreign exchange loss of
    $20.1&#160;million in 2008 as against gain on foreign currency
    derivative assets of $14.5&#160;million. We cannot predict the
    impact of future exchange rate fluctuations on our results of
    operations and may incur net foreign currency losses in the
    future. We will continue to hedge our Euro exposure against the
    U.S.&#160;dollar in order to minimize our foreign exchange
    exposure. Also we expect our U.S.&#160;dollar-denominated sales
    to increase.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008, we still have foreign currency
    collars and call forward contracts of the Euro against the
    U.S.&#160;dollar with notional value of &#128;58.0&#160;million
    and &#128;70.0&#160;million outstanding, respectively. Assuming
    a 10.0% appreciation of the Euro against the U.S.&#160;dollar,
    the mark-to-market value of our outstanding foreign exchange
    collars and call forward contracts of the Euro against the
    U.S.&#160;dollar would have decreased by approximately
    $12.8&#160;million as of December&#160;31, 2008.
</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 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our financial statements are expressed in U.S.&#160;dollars.
    Most of our subsidiaries&#146; transactional currency is in
    Renminbi. The value of your investment in our common shares will
    be affected by the foreign exchange rate between
    U.S.&#160;dollars and Renminbi. To the extent our subsidiaries
    hold assets denominated in U.S.&#160;dollars, any appreciation
    of the Renminbi against the U.S.&#160;dollar could result in a
    change to our statement of operations and a reduction in the
    value of our U.S.&#160;dollar-denominated assets. On the other
    hand, a decline in the value of Renminbi against the
    U.S.&#160;dollar could reduce the U.S.&#160;dollar equivalent
    amounts of our financial results, the value of your investment
    in our company and the dividends we may pay in the future, if
    any, all of which may have a material adverse effect on the
    prices of our common shares.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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
    Rate Risk</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our exposure to interest rate risk primarily relates to interest
    expenses incurred by our short-term and long-term bank
    borrowings, as well as interest income generated by excess cash
    invested in demand deposits and liquid investments with original
    maturities of three months or less. Such interest-earning
    instruments carry a degree of interest rate risk. We have not
    used any derivative financial instruments to manage our interest
    risk exposure. We have not been exposed nor do we anticipate
    being exposed to material risks due to changes in interest
    rates. However, our future interest expense may increase due to
    changes in market interest rates.
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;12.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='114'></A><B><I><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF SECURITIES OTHER THAN EQUITY SECURITIES</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>
<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">PART&#160;II</FONT></B>
</DIV>
</A>
<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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;13.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='116'></A><B><I><FONT style="font-family: 'Times New Roman', Times">DEFAULTS,
    DIVIDEND ARREARAGES AND DELINQUENCIES</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of these events occurred in any of the years ended
    December&#160;31, 2006, 2007 and 2008.
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;14.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='117'></A><B><I><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
    PROCEEDS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following &#147;Use of Proceeds&#148; information relates to:
</DIV>

<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="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    the registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    (File number:
    <FONT style="white-space: nowrap">333-149497)</FONT>
    for our registration of convertible senior notes, initially sold
    in a private transaction on December&#160;10, 2007, which
    registration statement was declared effective by the SEC on
    March&#160;27, 2008;&#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;
</TD>
    <TD align="left">
    the automatic shelf registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    (File number:
    <FONT style="white-space: nowrap">333-152325),</FONT>
    which automatically became effective upon filing on
    July&#160;14, 2008.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We received net proceeds of approximately $72.8&#160;million
    from the sale of our convertible senior notes in December 2007
    and approximately $112.8&#160;million from the public offering
    of our common shares in July 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We used the net proceeds of the sale of our convertible senior
    notes in December 2007 as follows: $12.0&#160;million for
    capital injection into CSI Luoyang, $6.2&#160;million for
    capital injection into CSI Cells and $54.6&#160;million for
    working capital purposes. As of December&#160;31, 2008, all of
    the net offering proceeds from the sale of our convertible
    senior notes had been applied.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Piper Jaffray served as the initial purchaser for the sale of
    our convertible senior notes.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We used the net proceeds of the public offering of our common
    shares in July 2008 as follows: $24.4&#160;million for capital
    injection into CSI Cells, $5.9&#160;million for capital
    injection into CSI Luoyang, $42.0&#160;million for a loan to CSI
    Cells for working capital purposes and $30.9&#160;million for
    working capital purposes. As of December&#160;31, 2008, all of
    the net offering proceeds from the public offering of our common
    shares had been applied.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Deutsche Bank Securities, Piper Jaffray and
    Oppenheimer&#160;&#038; Co. were the underwriters for the public
    offering of our common shares.
</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    See &#147;Item&#160;10. Additional Information&#148; for a
    description of the rights of securities holders, which remain
    unchanged.
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;15.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='118'></A><B><I><FONT style="font-family: 'Times New Roman', Times">CONTROLS
    AND PROCEDURES</FONT></I></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Disclosure
    Controls and 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the supervision and with the participation of our
    management, including our chief executive officer and our chief
    financial officer, we conducted an evaluation of our disclosure
    controls and procedures, as such term is defined under
    <FONT style="white-space: nowrap">Rule&#160;13a-15(e)</FONT>
    promulgated under the Securities Exchange Act of 1934, as
    amended. Based on that evaluation, our chief executive officer
    and chief financial officer have concluded that our disclosure
    controls and procedures were effective as of the end of the
    period covered by this annual report.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Management&#146;s
    Annual Report on Internal Control Over Financial
    Reporting</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our management is responsible for establishing and maintaining
    adequate internal control over financial reporting, as such term
    is defined in
    <FONT style="white-space: nowrap">Rule&#160;13a-15(f)</FONT>
    under the Securities Exchange Act of 1934, as amended, for our
    company. Internal control over financial reporting is a process
    designed to provide reasonable assurance regarding the
    reliability of financial reporting and the preparation of
    consolidated financial statements in accordance with generally
    accepted accounting principles and includes those policies and
    procedures that (1)&#160;pertain to the maintenance of records
    that, in reasonable detail, accurately and fairly reflect the
    transactions and dispositions of a company&#146;s assets,
    (2)&#160;provide reasonable assurance that transactions are
    recorded as necessary to permit preparation of consolidated
    financial statements in accordance with generally accepted
    accounting principles, and that a company&#146;s receipts and
    expenditures are being made only in accordance with
    authorizations of a company&#146;s management and directors, and
    (3)&#160;provide reasonable assurance regarding prevention or
    timely detection of unauthorized acquisition, use, or
    disposition of a company&#146;s assets that could have a
    material effect on the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because of its inherent limitations, a system of internal
    control over financial reporting can provide only reasonable
    assurance with respect to consolidated financial statement
    preparation and presentation and may not prevent or detect
    misstatements. Also, projections of any evaluation of
    effectiveness to future periods are subject to the risk that
    controls may become inadequate because of changes in conditions,
    or that the degree of compliance with the policies or procedures
    may deteriorate.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As required by Section&#160;404 of the Sarbanes-Oxley Act of
    2002 and related rules as promulgated by the Securities and
    Exchange Commission, management assessed the effectiveness of
    our internal control over financial reporting as of
    December&#160;31, 2008 using criteria established in Internal
    Control-Integrated Framework issued by the Committee of
    Sponsoring Organizations of the Treadway Commission.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on this assessment, management concluded that our internal
    control over financial reporting was effective as of
    December&#160;31, 2008 based on the criteria established in
    Internal Control-Integrated Framework issued by the Committee of
    Sponsoring Organizations of the Treadway Commission.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The effectiveness of internal control over financial reporting
    as of December&#160;31, 2008 has been audited by Deloitte Touche
    Tohmatsu CPA Ltd., an independent registered public accounting
    firm, who has also audited our consolidated financial statements
    for the year ended December&#160;31, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Attestation
    Report of the Independent Registered Public Accounting
    Firm</FONT></I></B>
</DIV>

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

<DIV align="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 Board of Directors and Stockholders of<BR>
    Canadian Solar Inc.:
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the internal control over financial reporting of
    Canadian Solar Inc. and subsidiaries (the &#147;Company&#148;)
    as of December&#160;31, 2008, based on criteria established in
    <I>Internal Control&#160;&#151; Integrated Framework </I>issued
    by the Committee of Sponsoring Organizations of the Treadway
    Commission. The Company&#146;s management is responsible for
    maintaining effective internal control over financial reporting
    and for its assessment of the effectiveness of internal control
    over financial reporting, included in the accompanying
    Management&#146;s Annual Report on Internal Control over
    Financial Reporting. Our responsibility is to express an opinion
    on the Company&#146;s internal control over financial reporting
    based on our audit.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether effective internal control
    over financial reporting was maintained in all material
    respects. Our audit included obtaining an understanding of
    internal control over financial reporting, assessing the risk
    that a material weakness exists, testing and evaluating the
    design and operating effectiveness of internal control based on
    the assessed risk, and performing such other procedures as we
    considered necessary in the circumstances. We believe that our
    audit provides a reasonable basis for our opinion.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A company&#146;s internal control over financial reporting is a
    process designed by, or under the supervision of, the
    company&#146;s principal executive and principal financial
    officers, or persons performing similar functions, and effected
    by the company&#146;s board of directors, management, and other
    personnel to provide reasonable assurance regarding the
    reliability of financial reporting and the preparation of
    financial statements for external purposes in accordance with
    generally accepted accounting principles. A company&#146;s
    internal control over financial reporting includes those
    policies and procedures that (1)&#160;pertain to the maintenance
    of records that, in reasonable detail, accurately and fairly
    reflect the transactions and dispositions of the assets of the
    company; (2)&#160;provide reasonable assurance that transactions
    are recorded as necessary to permit preparation of financial
    statements in accordance with generally accepted accounting
    principles, and that receipts and expenditures of the company
    are being made only in accordance with authorizations of
    management and directors of the company; and (3)&#160;provide
    reasonable assurance regarding prevention or timely detection of
    unauthorized acquisition, use, or disposition of the
    company&#146;s assets that could have a material effect on the
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because of the inherent limitations of internal control over
    financial reporting, including the possibility of collusion or
    improper management override of controls, material misstatements
    due to error or fraud may not be prevented or detected on a
    timely basis. Also, projections of any evaluation of the
    effectiveness of the internal control over financial reporting
    to future periods are subject to the risk that the controls may
    become inadequate because of changes in conditions, or that the
    degree of compliance with the policies or procedures may
    deteriorate.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the Company maintained, in all material
    respects, effective internal control over financial reporting as
    of December&#160;31, 2008, based on the criteria established in
    <I>Internal Control&#160;&#151; Integrated Framework</I> issued
    by the Committee of Sponsoring Organizations of the Treadway
    Commission.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have also audited, in accordance with the standards of the
    Public Company Accounting Oversight Board (United States), the
    consolidated financial statements and financial statement
    schedule as of and for the year ended December&#160;31, 2008 of
    the Company and our report dated June&#160;5, 2009 expressed an
    unqualified opinion on those financial statements and financial
    statement schedule and included an explanatory paragraphs
    regarding the Company&#146;s adoption of a new accounting
    standard.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Deloitte
    Touche Tohmatsu CPA Ltd</FONT>.</DIV>
</DIV>

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    June&#160;5, 2009
</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: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in Internal Controls</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There were no adverse changes in our internal controls over
    financial reporting that occurred during the period covered by
    this annual report that have materially affected, or are
    reasonably likely to materially affect, our internal controls
    over financial reporting. As a result, the independent
    registered public accounting firm has concluded that we
    maintained, in all material respects, effective internal control
    over financial reporting as of December&#160;31, 2008.
</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="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16A.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='119'></A><B><I><FONT style="font-family: 'Times New Roman', Times">AUDIT
    COMMITTEE FINANCIAL EXPERT</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has determined that each of Lars-Eric
    Johansson and Michael G. Potter qualifies as an &#147;audit
    committee financial expert&#148; as defined in Item&#160;16A of
    <FONT style="white-space: nowrap">Form&#160;20-F.</FONT>
    Each of the members of the audit committee is an
    &#147;independent director&#148; as defined in the Nasdaq
    Marketplace Rules.
</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="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16B.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='120'></A><B><I><FONT style="font-family: 'Times New Roman', Times">CODE
    OF ETHICS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has adopted a code of ethics that applies
    to our directors, officers, employees and agents, including
    certain provisions that specifically apply to our chief
    executive officer, chief financial officer, chief operating
    officer, chief technology officer, vice presidents and any other
    persons who perform similar functions for us. We have filed our
    code of business conduct and ethics as an exhibit to this annual
    report on
    <FONT style="white-space: nowrap">Form&#160;20-F,</FONT>
    and posted the code on our website www.canadian-solar.com. We
    hereby undertake to provide to any person without charge, a copy
    of our code of business conduct and ethics within ten working
    days after we receive such person&#146;s written request.
</DIV>
<A name='121'>
<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">Item&#160;16C.&#160;&#160;<I>PRINCIPAL
    ACCOUNTANT FEES AND SERVICES</I></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the aggregate fees by categories
    specified below in connection with certain professional services
    rendered by Deloitte Touche Tohmatsu CPA Ltd., our principal
    external auditors, for the periods indicated. We did not pay any
    other fees to our auditors during the periods indicated below.
</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="64%">&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="6%" 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 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>For the Years Ended December&#160;31,</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>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>
<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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit
    fees<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    334,857
</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">
    1,350,000
</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">
    1,360,000
</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">
    Audit-related
    fees<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    378,224
</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">
    565,862
</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">
    Tax fees
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All other fees
</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>
</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=456 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="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    &#147;Audit fees&#148; means the aggregate fees billed for
    professional services rendered by our principal auditors for the
    audit of our annual financial statements.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    &#147;Audit-related fees&#148; represents aggregate fees billed
    for professional services rendered by our principal auditors for
    assurance and related services. In 2007, these mainly consisted
    of the review of financial statements and offering documents in
    connection with our offering of 6.0%&#160;Convertible Senior
    Notes due 2017. In 2008, these mainly consisted of the review of
    financial statements and offering documents in connection with
    our follow-on public offering of common shares in July 2008.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The policy of our audit committee is to pre-approve all audit
    and non-audit services provided by Deloitte Touche Tohmatsu CPA
    Ltd., including audit services, audit-related services, tax
    services and other services as described above, other than those
    for <I>de&#160;minimus </I>services which are approved by the
    Audit Committee prior to the completion of the audit. We have a
    written policy on the engagement of an external auditor.
</DIV>

<DIV style="margin-top: 8pt; 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="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16D.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='122'></A><B><I><FONT style="font-family: 'Times New Roman', Times">EXEMPTIONS
    FROM THE LISTING STANDARDS FOR AUDIT
    COMMITTEES<FONT style="font-variant: SMALL-CAPS">
    </FONT></FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>

<DIV style="margin-top: 8pt; 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="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16E.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='123'></A><B><I><FONT style="font-family: 'Times New Roman', Times">PURCHASES
    OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
    PURCHASERS<FONT style="font-variant: SMALL-CAPS">
    </FONT></FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None.
</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 -->

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

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item<FONT style="font-variant: SMALL-CAPS">
    16F.</FONT></FONT><I><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <A name='124'></A><B><I><FONT style="font-family: 'Times New Roman', Times">CHANGE
    IN REGISTRANT&#146;S CERTIFYING
    ACCOUNTANT<FONT style="font-variant: SMALL-CAPS">
    </FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</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="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item<FONT style="font-variant: SMALL-CAPS">
    16G.</FONT></FONT><I><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <A name='125'></A><B><I><FONT style="font-family: 'Times New Roman', Times">CORPORATE
    GOVERNANCE</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None.
</DIV>
<A name='126'>
<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">PART&#160;III</FONT></B>
</DIV>
</A>
<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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;17.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='127'></A><B><I><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have elected to provide financial statements pursuant to
    Item&#160;18.
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;18.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='128'></A><B><I><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Canadian Solar Inc. are
    included at the end of this annual report.
</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="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;19.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='129'></A><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="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" 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 colspan="3" 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">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Document</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended Articles of Continuance (incorporated by reference to
    Exhibit&#160;3.2 from our F-1 registration statement (File
    <FONT style="white-space: nowrap">No.&#160;333-138144),</FONT>
    as amended, initially filed with the SEC on October&#160;23,
    2006)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Equity Underwriting Agreement (incorporated by reference
    to Exhibit&#160;1.1 from our
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    (File
    <FONT style="white-space: nowrap">No.&#160;001-33107),</FONT>
    initially filed with the SEC on July&#160;17, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of amended Director Indemnity Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2*&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    English translation of Supplementary Agreement between CSI Cells
    Co., Ltd. and Jiangxi LDK Solar Hi-Tech Co., Ltd. dated
    February&#160;14, 2009, supplementing the original Wafer Supply
    Agreement dated October&#160;17, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .3*&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    English translation of Supplementary Agreement between Jiangsu
    Zhongneng Polysilicon Technology Development Co., Ltd., CSI
    Cells Co., Ltd., Changshu CSI Advanced Solar Inc. and CSI
    Central Solar Power Co., Ltd., dated May&#160;22, 2009,
    supplementing the original Polysilicon Supply Contract dated
    August&#160;20, 2008 and the original Solar Wafer Supply
    Contract dated August&#160;20, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .4*&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Sales Contract between Canadian Solar Inc. and Solpower GmbH
    dated September&#160;1, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .5*&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Sales Contract between Canadian Solar Inc. and Iliotec Solar
    GmbH dated October&#160;2, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .6*&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Sales Contract between Canadian Solar Inc. and Iliotec
    International GmbH dated October&#160;2, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    List of Subsidiaries
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    11
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Code of Business Conduct (incorporated by reference to
    Exhibit&#160;99.1 from our F-1 registration statement (File
    <FONT style="white-space: nowrap">No.&#160;333-138144),</FONT>
    as amended, initially filed with the SEC on October&#160;23,
    2006)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    12
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    CEO Certification Pursuant to Section&#160;302 of the
    Sarbanes-Oxley Act of 2002
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    12
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    CFO Certification Pursuant to Section&#160;302 of the
    Sarbanes-Oxley Act of 2002
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    13
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    CEO Certification Pursuant to Section&#160;906 of the
    Sarbanes-Oxley Act of 2002
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    13
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    CFO Certification Pursuant to Section&#160;906 of the
    Sarbanes-Oxley Act of 2002
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Deloitte Touche Tohmatsu CPA Ltd.
</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=456 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">
    Filed with this annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT></TD>
</TR>


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


<TR>
    <TD valign="top">
    &#134; </TD>
    <TD></TD>
    <TD valign="bottom">
    Confidential treatment is being requested with respect to
    portions of these exhibits and such confidential treatment
    portions have been deleted and replaced with &#147;****&#148;
    and filed separately with the Securities and Exchange Commission
    pursuant to Rule&#160;24b-2 under the Exchange Act.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    93
</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: 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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The registrant hereby certifies that it meets all of the
    requirements for filing on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    and that it has duly caused and authorized the undersigned to
    sign this annual report on its behalf.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CANADIAN SOLAR INC.
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></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:left;">/s/&#160;&#160;Shawn
    (Xiaohua) Qu</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 53%; 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="53%"></TD>
    <TD width="8%"></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>    Title:&#160;
</TD>
    <TD align="left">
    Chairman, President and
</TD>
</TR>

</TABLE>

<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">
    Chief Executive Officer
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Date: June&#160;8, 2009
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    94
</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">CANADIAN
    SOLAR INC.<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">INDEX TO
    CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; 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="95%">&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='#301'>Report of Independent Registered Public
    Accounting Firm</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Consolidated Balance Sheets as of
    December&#160;31, 2007 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Consolidated Statements of Operations for the
    Years Ended December&#160;31, 2006, 2007 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Consolidated Statements of Stockholders&#146;
    Equity and Comprehensive Income (Loss) for the Years Ended
    December&#160;31, 2006, 2007 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#305'>Consolidated Statements of Cash Flows for the
    Years Ended December&#160;31, 2006, 2007 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#306'>Notes to the Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#307'>Schedule&#160;I</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-35
</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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-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 -->
<A name='301'>
<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">REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></B>
</DIV>
</A>

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

<DIV align="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 Board of Directors and Stockholders of
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheets of
    Canadian Solar Inc. and subsidiaries (the &#147;Company&#148;)
    as of December&#160;31, 2007 and 2008, and the related
    consolidated statements of operations, stockholders&#146; equity
    and comprehensive income (loss), and cash flows for each of the
    three years in the period ended December&#160;31, 2008, and the
    related financial statement schedule included in
    Schedule&#160;I. These financial statements and financial
    statement schedule are the responsibility of the Company&#146;s
    management. Our responsibility is to express an opinion on these
    financial statements and financial statement schedule based on
    our audits.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audits provide a
    reasonable basis for our opinion.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, such consolidated financial statements present
    fairly, in all material respects, the financial position of
    Canadian Solar Inc. and subsidiaries as of December&#160;31,
    2007 and 2008 and the results of their operations and their cash
    flows for each of the three years in the period ended
    December&#160;31, 2008, in conformity with accounting principles
    generally accepted in the United States of America. Also, in our
    opinion, such financial statement schedule, when considered in
    relation to the basic consolidated financial statements taken as
    a whole, present fairly in all material respects, the
    information set forth therein.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed in Note&#160;2 to the consolidated financial
    statements, effective January&#160;1, 2007, the Company adopted
    FASB Interpretation No.&#160;48 &#147;Accounting for Uncertainty
    in Income Taxes&#148;.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have also audited, in accordance with the standards of the
    Public Company Accounting Oversight Board (United States), the
    Company&#146;s internal control over financial reporting as of
    December&#160;31, 2008, based on the criteria established in
    <I>Internal Control&#160;&#151; Integrated Framework </I>issued
    by the Committee of Sponsoring Organizations of the Treadway
    Commission and our report dated June&#160;5, 2009 expressed an
    unqualified opinion on the Company&#146;s internal control over
    financial reporting.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Deloitte
    Touche Tohmatsu CPA Ltd</FONT>.</DIV>
</DIV>

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    June&#160;5, 2009
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-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 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">CANADIAN
    SOLAR INC.<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">

    <A name='302'><B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    BALANCE SHEETS</FONT></B></A>
</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 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>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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 colspan="9" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>ASSETS</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets:
</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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,667,120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,660,921
</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">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,625,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,621,749
</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">
    Accounts receivable, net of allowance for doubtful accounts of
    $376,178 and $5,605,983 on December&#160;31, 2007 and 2008,
    respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,637,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,611,312
</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">
    Inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,920,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,682,547
</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">
    Value added tax recoverable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,246,989
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,899,703
</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">
    Advances to suppliers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,744,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,654,392
</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">
    Foreign currency derivative 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">
    6,974,064
</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">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,057,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,918,581
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219,900,342
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    339,023,269
</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">
    Property, plant and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,486,258
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165,541,885
</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">
    Deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,965,886
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,997,918
</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">
    Advances to suppliers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,102,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,087,142
</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">
    Prepaid land use right
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,616,011
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,782,147
</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">
    Investment
</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">
    3,000,000
</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">
    Other non-current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,431,321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    299,038
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL ASSETS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    284,502,529
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    570,731,399
</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>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="9">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="9" align="center" valign="bottom">
    <B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities:
</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">
    Short-term borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,373,932
</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">
    110,664,813
</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">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,250,826
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,957,188
</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">
    Amounts due to related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    208,718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93,641
</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">
    Other payables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,153,217
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,043,309
</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">
    Advances from customers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,962,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,570,883
</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">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,264,499
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,332,229
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,213,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    172,662,063
</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">
    Accrued warranty costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,878,755
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,846,719
</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">
    Convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000,000
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,866,203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,357,340
</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">
    Liability for uncertain tax positions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,278,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,703,830
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL LIABILITIES
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158,236,656
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    238,569,952
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and contingencies (Note&#160;14)&#160;
</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">
    Stockholders&#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>
<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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common shares&#160;&#151; no par value: unlimited authorized
    shares, 27,320,389 and 35,744,563&#160;shares issued and
    outstanding at December&#160;31, 2007 and 2008, respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,454,214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294,707,048
</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">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,435,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,537,691
</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">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,604,572
</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">
    (12,992,818
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accumulated other comprehensive income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,980,542
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,909,526
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126,265,873
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    332,161,447
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    284,502,529
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    570,731,399
</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>
</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>

<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">
    See notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-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">CANADIAN
    SOLAR INC.<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">

    <A name='303'><B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    STATEMENTS OF OPERATIONS</FONT></B></A>
</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="58%">&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="10%" 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="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Net revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,212,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    302,797,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    705,006,356
</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">
    Cost of revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,871,959
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    279,022,155
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    633,998,620
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,340,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,775,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,007,736
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating 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">
&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">
    Selling expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,908,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,530,970
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,607,562
</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">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,923,923
</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">
    17,203,761
</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">
    34,510,263
</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">
    Research and development expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    397,859
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    997,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,824,753
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,230,457
</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">
    25,732,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,942,578
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income (Loss) from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,109,840
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,957,047
</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">
    24,065,158
</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">
    Other income (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">
&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">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,193,551
</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">
    (2,367,131
</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">
    (11,265,576
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    362,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    562,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,530,957
</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">
    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">
    (8,186,500
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Gain on foreign currency derivative 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">
    14,454,814
</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">
    Debt conversion inducement expense
</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">
    (10,170,118
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Foreign exchange gain (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (481,019
</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">
    2,688,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,087,375
</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: -10pt; margin-left: 20pt">
    Other&#160;&#151; net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    390,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    679,070
</TD>
<TD 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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income (Loss) before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,997,870
</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">
    (394,654
</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">
    527,860
</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">
    Income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (431,994
</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">
    184,978
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,916,106
</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: 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: -10pt; margin-left: 10pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,429,864
</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">
    (209,676
</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">
    (9,388,246
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss per share&#160;&#151; basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.30
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shares used in computation&#160;&#151; basic and diluted
</DIV>
</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">
    27,283,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,566,503
</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>
</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>

<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">
    See notes to consolidated financial statements.
</DIV>

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

<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">CANADIAN
    SOLAR INC.<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">

    <A name='304'><B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    STATEMENTS OF STOCKHOLDERS&#146; EQUITY AND COMPREHENSIVE<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">INCOME
    (LOSS)</FONT></B></A>
</DIV>
</A>

<DIV style="margin-top: 12pt; 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="33%">&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="5%" 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="6%" 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="5%" 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="8%" 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="8%" 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="6" 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>Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<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>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Earnings<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<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="6" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Comprehensive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stockholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Comprehensive<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="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deficit)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Income</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Equity</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Income/(Loss)</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>Number</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</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">
    Balance at December&#160;31, 2005
</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">
    210,843
</TD>
<TD 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">
    6,647,167
</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">
    109,070
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,967,080
</TD>
<TD 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: -8pt; margin-left: 8pt">
    Share-based compensation
</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">
    6,144,879
</TD>
<TD 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">
    6,144,879
</TD>
<TD 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 align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Conversion of convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,542,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,162,215
</TD>
<TD 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">
    10,162,215
</TD>
<TD 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: -8pt; margin-left: 8pt">
    De-recognition of conversion option derivative liability
</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">
    10,928,031
</TD>
<TD 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">
    10,928,031
</TD>
<TD 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 align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Issuance of ordinary shares, net of issuance cost
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,300,000
</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">
    83,323,942
</TD>
<TD 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">
    83,323,942
</TD>
<TD 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: -8pt; margin-left: 8pt">
    Deferred tax on issuance cost of ordinary shares
</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">
    3,605,391
</TD>
<TD 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">
    3,605,391
</TD>
<TD 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 align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Forgiveness of payable to shareholders
</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">
    260,987
</TD>
<TD 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">
    260,987
</TD>
<TD 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: -8pt; margin-left: 8pt">
    Net loss
</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">
    (9,429,864
</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">
    (9,429,864
</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">
    (9,429,864
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Foreign currency translation adjustment
</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">
    941,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    941,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    941,194
</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: -8pt; margin-left: 8pt">
    Balance at December&#160;31, 2006
</DIV>
</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">
    97,302,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,333,897
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,782,697
</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">
    1,050,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,903,855
</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">
    (8,488,670
</TD>
<TD nowrap align="left" valign="bottom">
    )
</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>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<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>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Adjustment for adoption of FIN&#160;48
</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">
    (612,199
</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">
    (612,199
</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">
&nbsp;
</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">
    Share-based compensation
</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">
    9,101,792
</TD>
<TD 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">
    9,101,792
</TD>
<TD 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 align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Exercise of stock options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,823
</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">
    &#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">
    151,823
</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">
&nbsp;
</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">
    Net loss
</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">
    (209,676
</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">
    (209,676
</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">
    (209,676
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Foreign currency translation adjustment
</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">
    4,930,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,930,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,930,278
</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: -8pt; margin-left: 8pt">
    Balance at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,320,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,454,214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,435,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,604,572
</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">
    5,980,542
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126,265,873
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,720,602
</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>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<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>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Share-based compensation
</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">
    9,102,002
</TD>
<TD 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">
    9,102,002
</TD>
<TD 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: -8pt; margin-left: 8pt">
    Conversion of convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,966,841
</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">
    82,103,558
</TD>
<TD 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">
    82,103,558
</TD>
<TD 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 align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Issuance of ordinary shares, net of issuance cost
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,500,000
</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">
    110,659,864
</TD>
<TD 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">
    110,659,864
</TD>
<TD 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: -8pt; margin-left: 8pt">
    Deferred tax on issuance costs of ordinary shares
</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">
    2,552,082
</TD>
<TD 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">
    2,552,082
</TD>
<TD 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: -8pt; margin-left: 8pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    566,190
</TD>
<TD 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>
<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: -8pt; margin-left: 8pt">
    Exercise of stock options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    391,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,937,330
</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">
    &#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">
    1,937,330
</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">
&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: -8pt; margin-left: 8pt">
    Net loss
</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">
    (9,388,246
</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">
    (9,388,246
</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">
    (9,388,246
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Foreign currency translation adjustment
</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">
    8,928,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,928,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,928,984
</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: -8pt; margin-left: 8pt">
    Balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,744,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294,707,048
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,537,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,992,818
</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">
    14,909,526
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    332,161,447
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (459,262
</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>

<DIV align="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>

<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">
    See notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-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="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">CANADIAN
    SOLAR INC.<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">

    <A name='305'><B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    STATEMENTS OF CASH FLOWS</FONT></B></A>
</DIV>
</A>

<DIV style="margin-top: 12pt; 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="61%">&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 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Operating activities:
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,429,864
</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">
    (209,676
</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">
    (9,388,246
</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">
    Adjustments to reconcile net loss to net cash provided by (used
    in) operating activities:
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    201,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,627,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,282,276
</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: 30pt">
    Loss on disposal of property, plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,072
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,126,852
</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: 30pt">
    Allowance for doubtful debts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,318
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    456,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,445,028
</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: 30pt">
    Write down of inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    274,947
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    482,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,784,578
</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: 30pt">
    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">
    8,186,500
</TD>
<TD 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: -10pt; margin-left: 30pt">
    Amortization of discount on debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    706,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    243,729
</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: 30pt">
    Unrealized gain on foreign currency derivative 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">
    (6,629,291
</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: -10pt; margin-left: 30pt">
    Share-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,144,879
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,101,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,102,002
</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: 30pt">
    Debt conversion inducement expense
</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">
    10,170,118
</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">
    Changes in operating assets and liabilities:
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (27,812,410
</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">
    (27,099,561
</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">
    (39,994,140
</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: -10pt; margin-left: 30pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,836,433
</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">
    (37,675,531
</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">
    2,126,297
</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: 30pt">
    Value added tax recoverable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,396,221
</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">
    (9,479,472
</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">
    (2,671,677
</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: 30pt">
    Advances to suppliers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,479,625
</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">
    (16,796,871
</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">
    (33,572,770
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,861,085
</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">
    (4,847,423
</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">
    783,021
</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: 30pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,361,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    719,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,685,549
</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: 30pt">
    Other payables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    672,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,986,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,369,498
</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: 30pt">
    Advances from customers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    324,890
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,822,752
</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">
    1,367,209
</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: 30pt">
    Amounts due to related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (282,528
</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">
    60,082
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (119,706
</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: 30pt">
    Accrued warranty costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530,826
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,979,414
</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">
    6,893,681
</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: 30pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (868,923
</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">
    906,584
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,893,489
</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: 30pt">
    Prepaid land use right
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,080,232
</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">
    (429,637
</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">
    (10,508,489
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Liability for uncertain tax positions
</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">
    1,666,283
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,425,348
</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">
    Deferred taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294,296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,929,089
</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">
    (621,658
</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: 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: -10pt; margin-left: 10pt">
    Net cash provided by (used in) operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (46,276,174
</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">
    (80,223,988
</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">
    3,192,698
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Investing activities:
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Increase in restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (686,214
</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">
    (695,893
</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">
    (17,950,833
</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: 20pt">
    Purchase of investment
</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">
    (3,000,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchase of property, plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,113,912
</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">
    (42,006,616
</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">
    (104,817,010
</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: 20pt">
    Proceeds from disposal of property, plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,157
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    220,009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,322
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,769,969
</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">
    (42,482,500
</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">
    (125,761,521
</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: 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>
</TABLE>

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

<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">CANADIAN
    SOLAR INC.<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">CONSOLIDATED
    STATEMENTS OF CASH FLOWS&#160;&#151; (Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="61%">&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 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Financing activities:
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Proceeds from short-term borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,333,379
</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">
    92,090,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    234,096,606
</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">
    Repayment of short-term borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,429,420
</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">
    (56,157,679
</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">
    (169,919,741
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Proceeds from long-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">
    16,712,795
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,964,230
</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">
    Proceeds from issuance of convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,650,000
</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">
    75,000,000
</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;
</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">
    Issuance cost paid on convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (571,315
</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">
    (2,970,138
</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">
    (381,900
</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: 20pt">
    Proceeds from issuance of common shares, net of issuance costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,323,942
</TD>
<TD 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">
    110,659,864
</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">
    Proceeds from exercise of stock options
</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">
    151,823
</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">
    1,937,330
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,306,586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124,827,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    201,356,389
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Effect of exchange rate changes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    370,521
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,364,950
</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">
    (793,765
</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: 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: -10pt; margin-left: 10pt">
    Net increase (decrease) in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,630,964
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,243,639
</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">
    77,993,801
</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">
    Cash and cash equivalents at the beginning of the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,279,795
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,910,759
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,667,120
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents at the end of the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,910,759
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,667,120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,660,921
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental disclosure of cash flow information:
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,471,498
</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">
    (823,040
</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">
    (11,103,634
</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: 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: -10pt; margin-left: 10pt">
    Income taxes paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,340,014
</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">
    (177,790
</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">
    (2,683,014
</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: 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: -10pt; margin-left: 10pt">
    Supplemental schedule of non-cash activities:
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Issuance cost included in other payables
</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">
    (381,496
</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="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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant and equipment cost included in other payables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,712,773
</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">
    (17,339,148
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Conversion of convertible notes to ordinary shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,162,215
</TD>
<TD 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">
    82,103,963
</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>
</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>

<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">
    See notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-7
</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">CANADIAN
    SOLAR INC.<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">

    <A name='306'><B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL STATEMENTS</FONT></B></A>
</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>FOR THE YEARS ENDED DECEMBER 31, 2006, 2007 AND 2008</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>(In U.S. dollars)</B>
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ORGANIZATION
    AND PRINCIPAL ACTIVITIES</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Canadian Solar Inc. (&#147;CSI&#148;) was incorporated pursuant
    to the laws of the Province of Ontario in October 2001, and
    changed its jurisdiction by continuing under the Canadian
    federal corporate statute, the Canada Business Corporations Act,
    or CBCA, effective June&#160;1, 2006.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CSI and its subsidiaries (collectively, the &#147;Company&#148;)
    are principally engaged in the design, development,
    manufacturing and marketing of solar power products for global
    markets. During the periods covered by the consolidated
    financial statements, substantially all of the Company&#146;s
    business was conducted through both CSI and the following
    operating subsidiaries:
</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="51%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="19%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 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 nowrap align="center" valign="bottom">
    <B>Date of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Place of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</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>Subsidiary</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Incorporation</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Incorporation</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership</B>
</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">
    CSI Solartronics (Changshu) Co., Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    November 23, 2001
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    PRC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CSI Solar Technologies Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 8, 2003
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    PRC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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">
    CSI Solar Manufacture Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    January 7, 2005
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    PRC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CSI Central Solar Power Co., Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 24, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    PRC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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">
    Changshu CSI Advanced Solar Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 1, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    PRC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CSI Cells Co., Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 23, 2006
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    PRC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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">
    Canadian Solar (USA) Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 8, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    USA
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CSI Solar Power Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    April 28, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    PRC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</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: 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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF PRINCIPAL ACCOUNTING POLICIES</FONT></B>
</TD>
</TR>

</TABLE>

<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: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(a)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Basis
    of presentation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of the Company have been
    prepared in accordance with accounting principles generally
    accepted in the United States of America (&#147;US GAAP&#148;).
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(b)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Basis
    of Consolidation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements include the financial
    statements of CSI and its wholly-owned subsidiaries. All
    significant inter-company transactions and balances are
    eliminated on consolidation.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(c)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Use of
    estimates</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preparation of financial statements in conformity with
    generally accepted accounting principles requires management to
    make estimates and assumptions that affect reported amounts of
    assets and liabilities and disclosure of contingent assets and
    liabilities at the date of the financial statements and the
    reported amounts of revenues and expenses during the reporting
    period. Actual results could differ from those estimates.
    Significant accounting estimates reflected in the Company&#146;s
    financial statements include allowance for doubtful accounts and
    advances to suppliers, market values of inventories, accrual for
    warranty, fair value of foreign exchange derivative assets,
    provision for uncertain tax positions and tax valuation
    allowances, assumptions used in the computation of share-based
    compensation including the associated forfeiture rates and
    useful lives of and impairment for property, plant and equipment
    and intangible assets.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(d)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    and cash equivalents</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cash and cash equivalents are stated at cost, which approximates
    fair value. Cash and cash equivalents consist of cash on hand
    and demand deposits, which are unrestricted as to withdrawal and
    use, and which have original maturities of three months or less.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-8
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Restricted cash represented bank deposits for import and export
    transactions through China Customs and for bank acceptance notes.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(e)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Advances
    to suppliers</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to secure a stable supply of silicon materials, the
    Company makes prepayments to certain suppliers based on written
    purchase orders detailing product, quantity and price. The
    Company&#146;s supply contracts grant the Company the right to
    inspect products prior to acceptance. Such amounts are recorded
    in advances to suppliers in the consolidated balance sheets.
    Advances to suppliers expected to be utilized within twelve
    months as of each balance sheet date are recorded as current
    assets and the portion expected to be utilized after twelve
    months are classified as non-current assets in the consolidated
    balance sheets.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company makes the prepayments without receiving collateral.
    Such prepayments are unsecured and expose the Company to
    supplier credit risk. As of December&#160;31, 2007 and 2008,
    prepayments made to individual suppliers in excess of 10% of
    total advances to suppliers are as follows:
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Supplier A
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,541,574
</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">
    25,583,405
</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">
    Supplier B
</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">
    15,997,973
</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">
    Supplier C
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,102,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,528,000
</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">
    Supplier D
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,027,574
</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">
    Supplier E
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,324,889
</TD>
<TD 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>
</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=456 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">
    Less than 10%</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(f)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Inventories</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inventories are stated at the lower of cost or market. Cost is
    determined by the weighted-average method. Cost is comprised of
    direct materials and, where applicable, direct labor costs,
    tolling costs and those overheads that have been incurred in
    bringing the inventories to their present location and condition.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjustments are recorded to write down the cost of obsolete and
    excess inventory to the estimated market value based on
    historical and forecast demand.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company outsources portions of its manufacturing process,
    including converting silicon into ingots, cutting ingots into
    wafers, and converting wafers into solar cells, to various
    third-party manufacturers. These outsourcing arrangements may or
    may not include transfer of title of the raw material inventory
    (silicon, ingots or wafers) to the third-party manufacturers.
    Such raw materials are recorded as raw materials inventory when
    purchased from suppliers. For those outsourcing arrangements in
    which title is not transferred, the Company maintains such
    inventory on the Company&#146;s balance sheet as raw materials
    inventory while it is in physical possession of the third-party
    manufacturer. Upon receipt of the processed inventory, it is
    reclassified to
    <FONT style="white-space: nowrap">work-in-process</FONT>
    inventory and a processing fee is paid to the third-party
    manufacturer. For those outsourcing arrangements, which are
    characterized as sales, in which title (including risk of loss)
    does transfer to the third-party manufacturer, the Company is
    constructively obligated, through raw materials sales agreements
    and processed inventory purchase agreements which have been
    entered into simultaneously with the third-party manufacturer,
    to repurchase the inventory once processed. In this case, the
    raw material inventory remains classified as raw material
    inventory while in the physical possession of the third-party
    manufacturer and cash is received, which is classified as
    &#147;advances from customers&#148; on the balance sheet and not
    as revenue or deferred revenue. Cash payments for outsourcing
    arrangements which require prepayment for repurchase of the
    processed inventory is classified as &#147;advances to
    suppliers&#148; on the balance sheet. There is no right of
    offset for these arrangements and accordingly,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-9
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;advances from customers&#148; and &#147;advances to
    suppliers&#148; remain on the balance sheet until the processed
    inventory is repurchased.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(g)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Property,
    plant and equipment</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, plant and equipment is recorded at cost less
    accumulated depreciation and amortization. The cost of property,
    plant and equipment comprises its purchase price and any
    directly attributable costs, including interest cost capitalized
    in accordance with SFAS&#160;No.&#160;34,
    <I>&#147;Capitalization of Interest Costs&#148;
    </I>(&#147;SFAS&#160;No.&#160;34&#148;), during the period the
    assets is brought to its working condition and location for its
    intended use.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation is computed on a straight-line basis over the
    following estimated useful lives:
</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="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="64%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Buildings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    20&#160;years
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Over the shorter of the lease term or their estimated useful
    lives
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Machinery
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    5-10&#160;years
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture, fixtures and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    5&#160;years
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Motor vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    5&#160;years
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Costs incurred in constructing new facilities, including
    progress payment and other costs relating to the construction,
    are capitalized and transferred to property, plant and equipment
    on completion and depreciation commences from that time.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(h)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Prepaid
    land use right</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prepaid land use right represents amounts paid for the
    Company&#146;s lease for the use right of lands located in
    Changshu City, Suzhou City, and Luoyang City of mainland China.
    Amounts are charged to earning ratably over the term of the
    lease of 50&#160;years.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(i)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Investment</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s investment is in the preferred shares of a
    privately-held entity and is recorded under the cost method as
    the Company is unable to exert significant influence over such
    investment.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investments are evaluated for impairment when facts or
    circumstances indicate that the fair value of the investment is
    less than its carrying value. An impairment is recognized when a
    decline in fair value is determined to be
    <FONT style="white-space: nowrap">other-than-temporary.</FONT>
    The Company reviews several factors to determine whether a loss
    is
    <FONT style="white-space: nowrap">other-than-temporary.</FONT>
    These factors include, but are not limited to, the:
    (1)&#160;nature of the investment; (2)&#160;cause and duration
    of the impairment; (3)&#160;extent to which fair value is less
    than cost; (4)&#160;financial conditions and near term prospects
    of the issuers; and (5)&#160;ability to hold the security for a
    period of time sufficient to allow for any anticipated recovery
    in fair value.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(j)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Impairment
    of long-lived assets</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company evaluates its long-lived assets for impairment
    whenever events or changes in circumstances indicate that the
    carrying amount of an asset may not be recoverable. When these
    events occur, the Company measures impairment by comparing the
    carrying amount of the assets to future undiscounted net cash
    flows expected to result from the use of the assets and their
    eventual disposition. If the sum of the expected undiscounted
    cash flow is less than the carrying amount of the assets, the
    Company would recognize an impairment loss based on the fair
    value of the assets. There was no impairment charge recognized
    during the years ended December&#160;31, 2006, 2007 and 2008.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-10
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(k)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    taxes</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Deferred income taxes are recognized for temporary differences
    between the tax basis of assets and liabilities and their
    reported amounts in the financial statements, net tax loss carry
    forwards and credits by applying enacted statutory tax rates
    applicable to future years. Deferred tax assets are reduced by a
    valuation allowance when, in the opinion of management, it is
    more likely than not that some portion or all of the deferred
    tax assets will not be realized. Current income taxes are
    provided for in accordance with the laws of the relevant taxing
    authorities. The components of the deferred tax assets and
    liabilities are individually classified as current and
    non-current based on the characteristics of the underlying
    assets and liabilities, or the expected timing of their use when
    they do not relate to a specific asset or liability.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Financial Accounting Standard Board (&#147;FASB&#148;)
    issued Financial Interpretation No.&#160;48
    (&#147;FIN&#160;48&#148;) &#147;Accounting for Uncertainty in
    Income Taxes,&#148; which clarifies the accounting for
    uncertainty in income taxes recognized in the financial
    statements in accordance with SFAS&#160;No.&#160;109,
    &#147;Accounting for Income Taxes.&#148; FIN&#160;48 provides
    that a tax benefit from an uncertain tax position may be
    recognized when it is more likely than not that the position
    will be sustained upon examination, including resolutions of any
    related appeals or litigation processes, based on the technical
    merits. Income tax positions must meet a more-likely-than-not
    recognition threshold at the effective date to be recognized
    upon the adoption of FIN&#160;48 and in subsequent periods. This
    interpretation also provides guidance on measurement,
    derecognition, classification, interest and penalties,
    accounting in interim periods, disclosure and transition.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company adopted the provisions of FIN&#160;48 on
    January&#160;1, 2007 and recognized a $612,199 increase in the
    liability for uncertain tax positions, which was accounted for
    as a reduction to the January&#160;1, 2007 balance of retained
    earnings.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(l)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue
    recognition</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales of modules and silicon material are recorded when products
    are delivered and title has passed to the customers. The Company
    only recognizes revenues when prices to the seller are fixed or
    determinable, and collectibility is reasonably assured. Revenues
    also include reimbursements of shipping and handling costs of
    products sold to customers. Sales agreements typically contain
    the customary product warranties but do not contain any
    post-shipment obligations nor any return or credit provisions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A majority of the Company&#146;s contracts provide that products
    are shipped under the term of free on board (&#147;FOB&#148;),
    ex-works, or cost, insurance and freight (&#147;CIF&#148;).
    Under FOB, the Company fulfils its obligation to deliver when
    the goods have passed over the ship&#146;s rail at the named
    port of shipment. The customer has to bear all costs and risks
    of loss or damage to the goods from that point. Under ex-works,
    the Company fulfils its obligation to deliver when it has made
    the goods available at its premises to the customer. The
    customer bears all costs and risks involved in taking the goods
    from the Company&#146;s premises to the desired destination.
    Under CIF, the Company must pay the costs, marine insurance and
    freight necessary to bring the goods to the named port of
    destination but the risk of loss of or damage to the goods, as
    well as any additional costs due to events occurring after the
    time the goods have been delivered on board the vessel, is
    transferred to the customer when the goods pass the ship&#146;s
    rail in the port of shipment. Sales are recorded when the risk
    of loss or damage is transferred from the Company to the
    customers.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company enters into toll manufacturing arrangements in which
    the Company receives wafers and returns finished modules. The
    Company recognizes a service fee as revenue when the processed
    modules are delivered.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(m)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of revenues</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of revenues from modules includes production and indirect
    costs such as shipping and handling costs for products sold.
    Cost of revenues from silicon materials includes acquisition
    costs. Cost of revenues from services includes labor and
    material costs associated with provision of the services.
</DIV>

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

<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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(n)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Research
    and development</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Research and development costs are expensed when incurred.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(o)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Advertising
    expenses</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Advertising expenses are expensed as incurred and amounted to
    $55,448, $512,465 and $304,978 for the years ended
    December&#160;31, 2006, 2007 and 2008, respectively.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(p)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Warranty
    cost</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s solar modules and products are typically sold
    with up to a two-year guarantee for defects in materials and
    workmanship and
    <FONT style="white-space: nowrap">10-year</FONT> and
    <FONT style="white-space: nowrap">25-year</FONT>
    warranties against specified declines in the initial minimum
    power generation capacity at the time of delivery. The Company
    has the right to repair or replace solar modules, at its option,
    under the terms of the warranty policy. The Company maintains
    warranty reserves to cover potential liabilities that could
    arise under these guarantees and warranties. Due to limited
    warranty claims to date, the Company accrues the estimated costs
    of warranties based on an assessment of the Company&#146;s
    competitors&#146; accrual history, industry-standard accelerated
    testing, estimates of failure rates from the Company&#146;s
    quality review, and other assumptions that the Company believes
    to be reasonable under the circumstances. Actual warranty costs
    are accumulated and charged against the accrued warranty
    liability. To the extent that accrual warranty costs differ from
    the estimates, the Company will prospectively revise its accrual
    rate.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(q)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Foreign
    currency translation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The United States dollar (&#147;U.S.&#160;dollar&#148;), the
    currency in which a substantial amount of the Company&#146;s
    transactions are denominated, is used as the functional and
    reporting currency of CSI. Monetary assets and liabilities
    denominated in currencies other than the U.S.&#160;dollar are
    translated into U.S.&#160;dollars at the rates of exchange
    ruling at the balance sheet date. Transactions in currencies
    other than the U.S.&#160;dollar during the year are converted
    into the U.S.&#160;dollar at the applicable rates of exchange
    prevailing on the transaction date. Transaction gains and losses
    are recognized in the statements of operations. The Company
    recorded an exchange loss of $481,019 for the year ended
    December&#160;31, 2006, an exchange gain of $2,688,448 for the
    year ended December&#160;31, 2007, and an exchange loss of
    $20,087,375 for the year ended December&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial records of certain of the Company&#146;s
    subsidiaries are maintained in local currencies other than the
    U.S.&#160;dollar, such as Renminbi (&#147;RMB&#148;), which are
    their functional currencies. Assets and liabilities are
    translated at the exchange rates at the balance sheet date,
    equity accounts are translated at historical exchange rates and
    revenues, expenses, gains and losses are translated using the
    average rate for the year. Translation adjustments are reported
    as foreign currency translation adjustment and are shown as a
    separate component of other comprehensive income (loss) in the
    statements of stockholders&#146; equity and comprehensive income
    (loss).
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(r)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Foreign
    currency risk</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The RMB is not a freely convertible currency. The PRC State
    Administration for Foreign Exchange, under the authority of the
    People&#146;s Bank of China, controls the conversion of RMB into
    foreign currencies. The value of the RMB is subject to changes
    in central government policies and to international economic and
    political developments affecting supply and demand in the China
    foreign exchange trading system market. The Company&#146;s cash
    and cash equivalents and restricted cash denominated in RMB
    amounted to $8,827,341 and $96,543,991 as of December&#160;31,
    2007 and 2008, respectively.
</DIV>

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

<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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(s)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Concentration
    of credit risk</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Financial instruments that potentially expose the Company to
    concentrations of credit risk consist primarily of cash and cash
    equivalents, accounts receivable and advances to suppliers. All
    of the Company&#146;s cash and cash equivalents are held with
    financial institutions that Company management believes to be
    high credit quality.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company conducts credit evaluations of customers and
    generally does not require collateral or other security from its
    customers. The Company establishes an allowance for doubtful
    accounts primarily based upon the age of the receivables and
    factors surrounding the credit risk of specific customers. With
    respect to advances to suppliers, such suppliers are primarily
    suppliers of raw materials. The Company performs ongoing credit
    evaluations of its suppliers&#146; financial conditions. The
    Company generally does not require collateral or security
    against advances to suppliers, however, it maintains a reserve
    for potential credit losses and such losses have historically
    been within management&#146;s expectation.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(t)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Fair
    value of derivatives and financial instruments</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The carrying value of cash and cash equivalents, trade
    receivables, advances to suppliers, accounts payable and
    short-term borrowings approximate their fair values due to the
    short-term maturity of these instruments. Long-term bank
    borrowings approximate their fair value since the contracts were
    entered into with floating market interest rates.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The carrying amount of the Company&#146;s outstanding
    convertible notes as of December&#160;31, 2008 was
    $1.0&#160;million. The estimated fair value of those notes was
    $0.8&#160;million as of December&#160;31, 2008. The Company did
    not compute the fair value of its $3,000,000 investment (as of
    December&#160;31, 2008)&#160;as it was impracticable to do so
    without incurring significant cost.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s primary objective for holding derivative
    financial instruments is to manage currency risk. The Company
    records derivative instruments as assets or liabilities,
    measured at fair value. The recognition of gains or losses
    resulting from changes in fair values of those derivative
    instruments is based on the use of each derivative instrument
    and whether it qualifies for hedge accounting.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company entered into certain foreign currency derivative
    contracts to protect against volatility of future cash flows
    caused by the changes in foreign exchange rates. The foreign
    currency derivative contracts do not qualify for hedge
    accounting and, as a result, the changes in fair value of the
    foreign currency derivative contracts are recognized in the
    statement of operations. The Company recorded gain on foreign
    currency derivative contracts as $nil, $nil and $14,454,814 for
    the years ended December&#160;31, 2006, 2007 and 2008,
    respectively.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(u)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Earnings
    per Share</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Basic income per share is computed by dividing income
    attributable to holders of common shares by the weighted average
    number of common shares outstanding during the year. Diluted
    income per common share reflects the potential dilution that
    could occur if securities or other contracts to issue common
    shares were exercised or converted into common shares.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(v)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Share-based
    compensation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company account for share-based compensation in accordance
    with Statement of Financial Accounting Standards
    (&#147;SFAS&#148;) No.&#160;123 (revised 2004),
    &#147;Share-Based Payment,&#148; (&#147;SFAS&#160;123R&#148;).
    SFAS&#160;123R requires the Company to use a fair-value based
    method to account for share-based compensation. Accordingly,
    share-based compensation cost is measured at the grant date,
    based on the fair value of the award, and is recognized as
    expense over the requisite service period. As required by
    SFAS&#160;123R, the Company have made an estimate of expected
    forfeitures and are recognizing compensation cost only for those
    equity awards expected to vest.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-13
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(w)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Reclassifications</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain reclassification have been made to prior year numbers to
    conform to current year presentation.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">(x)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Recently
    issued accounting pronouncements</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued Statement of Financial
    Accounting Standards No.&#160;141R (revised 2007), <I>Business
    Combination </I>(&#147;SFAS&#160;141R&#148;), to improve
    reporting and to create greater consistency in the accounting
    and financial reporting of business combinations. The standard
    requires the acquiring entity in a business combination to
    recognize all (and only) the assets acquired and liabilities
    assumed in the transaction; establishes the acquisition-date
    fair value as the measurement objective for all assets acquired
    and liabilities assumed; and requires the acquirer to disclose
    to investors and other users all of the information they need to
    evaluate and understand the nature and financial effect of the
    business combination. SFAS&#160;141R applies prospectively to
    business combinations for which the acquisition date is on or
    after the beginning of the first annual reporting period
    beginning on or after December&#160;15, 2008, with the exception
    of the accounting for valuation allowances on deferred taxes and
    acquired tax contingencies. SFAS&#160;141R amends SFAS&#160;109,
    &#147;Accounting for Income Taxes,&#148; such that adjustments
    made to valuation allowances on deferred taxes and acquired tax
    contingencies associated with acquisitions that closed prior to
    the effective date of SFAS&#160;141R would also apply the
    provisions of SFAS&#160;141R. The adoption of SFAS&#160;141R
    will change the Company&#146;s accounting treatment for business
    combinations on a prospective basis beginning on January&#160;1,
    2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;1, 2009, the FASB issued FASB Staff Position
    (&#147;FSP&#148;) No.&#160;141(R)-1, <I>Accounting for Assets
    Acquired and Liabilities Assumed in a Business Combination That
    Arise from Contingencies </I>(&#147;FSP&#160;141(R)-1&#148;),
    which amends the guidance in SFAS&#160;141R to establish a model
    for pre-acquisition contingencies that is similar to the one
    entities used under SFAS&#160;141. Under the FSP, an acquirer is
    required to recognize at fair value an asset acquired or a
    liability assumed in a business combination that arises from a
    contingency if the acquisition-date fair value of that asset or
    liability can be determined during the measurement period. If
    the acquisition-date fair value cannot be determined, then the
    acquirer follows the recognition criteria in SFAS&#160;5 and
    FIN&#160;14 to determine whether the contingency should be
    recognized as of the acquisition date or after it. The FSP is
    effective for business combinations whose acquisition date is on
    or after the beginning of the first annual reporting period
    beginning on or after December&#160;15, 2008. The adoption of
    FSP&#160;141(R)-1 will change the Company&#146;s accounting
    treatment for business combinations on a prospective basis
    beginning on January&#160;1, 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued SFAS&#160;No.&#160;160,
    <I>Noncontrolling Interests in Consolidated Financial
    Statements&#160;&#151; an amendment of ARB No.&#160;51
    </I>(&#147;SFAS&#160;160&#148;), to improve the relevance,
    comparability, and transparency of financial information
    provided to investors by requiring all entities to report
    non-controlling interests in subsidiaries in the same way as
    required in the consolidated financial statements. SFAS&#160;160
    eliminates the diversity that currently exists in accounting for
    transactions between an entity and noncontrolling interests by
    requiring they be treated as equity transactions. SFAS&#160;160
    is effective for fiscal years, and interim periods within those
    fiscal years, beginning on or after December&#160;15, 2008. The
    Company does not expect that the adoption of SFAS&#160;160 will
    have an impact on the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2008, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;157-2,</FONT>
    <I>Effective Date of FASB Statement No.&#160;157
    </I><FONT style="white-space: nowrap">(&#147;FSP&#160;157-2&#148;).</FONT>
    <FONT style="white-space: nowrap">FSP&#160;157-2</FONT>
    delays the effective date of SFAS&#160;157 for nonfinancial
    assets and nonfinancial liabilities, except for items that are
    recognized or disclosed at fair value in the financial
    statements on a recurring basis, until fiscal years beginning
    after November&#160;15, 2008. As a result of
    <FONT style="white-space: nowrap">FSP&#160;157-2,</FONT>
    the Company will adopt SFAS&#160;157 for its nonfinancial assets
    and nonfinancial liabilities beginning with the first interim
    period of its fiscal year 2009. The Company does not expect that
    the adoption of SFAS&#160;157 for its nonfinancial assets and
    nonfinancial liabilities will have a material impact on its
    financial position, results of operations or cash flows.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2008, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;157-3,</FONT>
    <I>Determining the Fair Value of a Financial Asset When the
    Market for That Asset Is Not Active
    </I><FONT style="white-space: nowrap">(&#147;FSP&#160;157-3&#148;).</FONT>
    <FONT style="white-space: nowrap">FSP&#160;157-3</FONT>
    clarifies the application of SFAS&#160;157 in a market that
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-14
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    is not active, and addresses application issues such as the use
    of internal assumptions when relevant observable data does not
    exist, the use of observable market information when the market
    is not active, and the use of market quotes when assessing the
    relevance of observable and unobservable data.
    <FONT style="white-space: nowrap">FSP&#160;157-3</FONT>
    is effective for all periods presented in accordance with
    FAS&#160;157. The Company does not expect the adoption of
    <FONT style="white-space: nowrap">FSP&#160;157-3</FONT>
    to have a material impact on the Company&#146;s consolidated
    financial statements or the fair values of its financial assets
    and liabilities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;9, 2009, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;157-4,</FONT>
    <I>Determining Fair Value When the Volume and Level of Activity
    for the Asset or Liability Have Significantly Decreased and
    Identifying Transactions That Are Not Orderly
    </I><FONT style="white-space: nowrap">(&#147;FSP&#160;157-4&#148;).</FONT>
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    provides additional guidance for estimating fair value in
    accordance with FASB 157 when the volume and level of activity
    for the asset or liability have significantly decreased. This
    FSP also includes guidance on identifying circumstances that
    indicate a transaction is not orderly. The Company does not
    expect the adoption of
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    to have a material impact on the Company&#146;s consolidated
    financial statements or the fair values of its financial assets
    and liabilities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2008, the FASB issued SFAS&#160;No.&#160;161,
    <I>Disclosures About Derivative Instruments and Hedging
    Activities </I>(&#147;SFAS&#160;161&#148;), an amendment of FASB
    Statement No.&#160;133. The new standard requires enhanced
    disclosures to help investors better understand the effect of an
    entity&#146;s derivative instruments and related hedging
    activities on its financial position, financial performance and
    cash flows. SFAS&#160;161 is effective for financial statements
    issued for fiscal years and interim periods beginning after
    November&#160;15, 2008, with early application encouraged.
    SFAS&#160;161 does not change the accounting treatment for
    derivative instruments but will impact the Company&#146;s
    disclosures related to derivative instruments and hedging
    activities effective from January&#160;1, 2009.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In April 2008, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;142-3,</FONT>
    <I>Determining the Useful Life of Intangible Assets
    </I><FONT style="white-space: nowrap">(&#147;FSP&#160;142-3&#148;).</FONT>
    <FONT style="white-space: nowrap">FSP&#160;142-3</FONT>
    amends the factors to be considered in determining the useful
    life of intangible assets. Its intent is to improve the
    consistency between the useful life of an intangible asset and
    the period of expected cash flows used to measure such
    asset&#146;s fair value.
    <FONT style="white-space: nowrap">FSP&#160;142-3</FONT>
    is effective for fiscal years beginning after December&#160;15,
    2008. The Company does not expect that the adoption of
    <FONT style="white-space: nowrap">FSP&#160;142-3</FONT>
    will have a material impact on the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2008, the FASB issued FSP Accounting Principles Board
    (&#147;APB&#148;) Opinion
    <FONT style="white-space: nowrap">14-1,</FONT>
    <I>Accounting for Convertible Debt Instruments That May Be
    Settled in Cash upon Conversion (Including Partial Cash
    Settlement) </I>(&#147;FSP APB
    <FONT style="white-space: nowrap">14-1&#148;).</FONT>
    FSP APB <FONT style="white-space: nowrap">14-1</FONT>
    requires recognition of both the liability and equity components
    of convertible debt instruments with cash settlement features.
    The debt component is required to be recognized at the fair
    value of a similar instrument that does not have an associated
    equity component. The equity component is recognized as the
    difference between the proceeds from the issuance of the note
    and the fair value of the liability. FSP APB
    <FONT style="white-space: nowrap">14-1</FONT> also
    requires an accretion of the resulting debt discount over the
    expected life of the debt. Retrospective application to all
    periods presented is required. This standard is effective for
    the Company beginning in the first quarter of fiscal year 2009.
    The convertible notes issued in December 2007&#160;may be
    settled in cash upon conversion under the original contract
    terms. The cumulative effect of implementing FSP APB
    <FONT style="white-space: nowrap">14-1</FONT> will be
    an increase of $100.4&#160;million in common shares, a decrease
    in additional paid-in capital of $102.2&#160;million and an
    increase in retained earnings of $1.9&#160;million as of
    December&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At its June&#160;25, 2008 meeting, the FASB ratified the
    consensus reached in the Emerging Issues Task Force
    (&#147;EITF&#148;) Issue
    <FONT style="white-space: nowrap">No.&#160;07-5,</FONT>
    <I>Determining Whether an Instrument (or Embedded Feature) Is
    Indexed to an Entity&#146;s Own Stock
    </I><FONT style="white-space: nowrap">(&#147;EITF&#160;07-5&#148;).</FONT>
    <FONT style="white-space: nowrap">EITF&#160;07-5</FONT>
    is effective for fiscal years and interim periods beginning
    after December&#160;15, 2008. This Issue&#146;s
    <FONT style="white-space: nowrap">&#147;fixed-for-fixed,</FONT>
    plus fair value inputs&#148; model is largely consistent with
    current interpretations of the phrase &#147;indexed to an
    entity&#146;s own stock.&#148; However, in certain
    circumstances, Issue
    <FONT style="white-space: nowrap">07-5</FONT> may
    result in changes to those accounting conclusions and may have
    impact on issuers of equity-linked financial instruments (e.g.,
    options or forward contracts) or instruments containing embedded
    features (e.g., embedded conversion options in a convertible
    instrument) that have (1)&#160;exercise or settlement
    contingency provisions, (2)&#160;a strike price that is subject
    to adjustment, or (3)&#160;a strike price that is denominated in
    a currency other than the entity&#146;s functional currency. The
    Company is currently evaluating the impact of this statement on
    its consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-15
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In April 2009, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;115-2</FONT>
    and <FONT style="white-space: nowrap">124-2,</FONT>
    <I>Recognition and Presentation of
    <FONT style="white-space: nowrap">Other-Than-Temporary</FONT>
    Impairments </I>(&#147;FSP
    <FONT style="white-space: nowrap">FAS&#160;115-2</FONT>
    and
    <FONT style="white-space: nowrap">FAS&#160;124-2&#148;).</FONT>
    The FSP amends the
    <FONT style="white-space: nowrap">other-than-temporary</FONT>
    impairment guidance in U.S.&#160;GAAP for debt securities to
    make the guidance more operational and to improve the
    presentation and disclosure of
    <FONT style="white-space: nowrap">other-than-temporary</FONT>
    impairments on debt and equity securities in the financial
    statements. This FSP does not amend existing recognition and
    measurement guidance related to
    <FONT style="white-space: nowrap">other-than-temporary</FONT>
    impairments of equity securities. The Company does not expect
    the adoption of FSP
    <FONT style="white-space: nowrap">FAS&#160;115-2</FONT>
    and
    <FONT style="white-space: nowrap">FAS&#160;124-2</FONT>
    to have a material impact on the Company&#146;s consolidated
    financial statements.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ALLOWANCE
    FOR DOUBTFUL RECEIVABLES</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Allowance for doubtful receivables are comprised of allowances
    for account receivable and advances to suppliers.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An analysis of allowances for accounts receivable at
    December&#160;31, 2007 and 2008 is as follows:
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Beginning of the year
</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">
    376,178
</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">
    Allowances made during the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    456,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,218,944
</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">
    Accounts written-off against allowances
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (83,954
</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">
    (19,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Foreign exchange effect
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,861
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Closing balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    376,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,605,983
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An analysis of allowances for advances to suppliers at
    December&#160;31, 2007 and 2008 is as follows:
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Beginning of the year
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allowances made during the year
</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">
    2,226,084
</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">
    Foreign exchange effect
</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">
    115,601
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Closing balance
</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">
    2,341,685
</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>
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">INVENTORIES</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inventories consist of the following:
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Raw materials
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,184,973
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,121,994
</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">
    <FONT style="white-space: nowrap">Work-in-process</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,082,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,220,906
</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">
    Finished goods
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,653,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,339,647
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,920,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,682,547
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The company wrote down obsolete inventories amounting to
    $274,947, $482,544 and $23,784,578 during the years ended
    December&#160;31, 2006, 2007 and 2008 respectively.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-16
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">PROPERTY,
    PLANT AND EQUIPMENT, NET</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, plant and equipment, net consists of the following:
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Buildings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,313,884
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,854,814
</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">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    475,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,674,838
</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">
    Machinery
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,572,316
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,017,929
</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">
    Furniture, fixtures and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,723,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,569,500
</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">
    Motor vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    311,831
</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">
    1,055,123
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,397,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,172,204
</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">
    Less: Accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,060,207
</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">
    (11,888,864
</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: 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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,337,462
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,283,340
</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">
    Construction in process
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,148,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73,258,545
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,486,258
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165,541,885
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was $205,124, $1,611,885 and $9,213,765 for
    the years ended December&#160;31, 2006, 2007 and 2008,
    respectively. Construction in process represents production
    facilities under construction.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">FAIR
    VALUE MEASUREMENT</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2008, the Company adopted SFAS&#160;157,
    <I>Fair Value Measurements </I>(&#147;SFAS&#160;157&#148;).
    SFAS&#160;157 defines fair value, establishes a framework for
    measuring fair value in accordance with generally accepted
    accounting principles and expands financial statement disclosure
    requirements for fair value measurements. The Company&#146;s
    adoption of SFAS&#160;157 was limited to its financial assets
    and financial liabilities, as permitted by
    <FONT style="white-space: nowrap">FSP&#160;157-2.</FONT>
    The Company does not have any non financial assets or non
    financial liabilities that it recognizes or discloses at fair
    value in its financial statements on a recurring basis. The
    implementation of the fair value measurement guidance of
    SFAS&#160;157 did not result in any material changes to the
    carrying values of the Company&#146;s financial instruments on
    its opening balance sheet on January&#160;1, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SFAS&#160;157 defines fair value as the price that would be
    received from the sale of an asset or paid to transfer a
    liability (an exit price) on the measurement date in an orderly
    transaction between market participants in the principal or most
    advantageous market for the asset or liability. SFAS&#160;157
    specifies a hierarchy of valuation techniques, which is based on
    whether the inputs into the valuation technique are observable
    or unobservable. The hierarchy is 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></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;
</TD>
    <TD align="left">
    <I>Level&#160;1</I>&#160;&#151; Valuation techniques in which
    all significant inputs are unadjusted quoted prices from active
    markets for assets or liabilities that are identical to the
    assets or liabilities being measured.
</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;
</TD>
    <TD align="left">
    <I>Level&#160;2</I>&#160;&#151; Valuation techniques in which
    significant inputs include quoted prices from active markets for
    assets or liabilities that are similar to the assets or
    liabilities being measured
    <FONT style="white-space: nowrap">and/or</FONT>
    quoted prices for assets or liabilities that are identical or
    similar to the assets or liabilities being measured from markets
    that are not active. Also, model-derived valuations in which all
    significant inputs and significant value drivers are observable
    in active markets are Level&#160;2 valuation techniques.
</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;
</TD>
    <TD align="left">
    <I>Level&#160;3</I>&#160;&#151; Valuation techniques in which
    one or more significant inputs or significant value drivers are
    unobservable. Unobservable inputs are valuation technique inputs
    that reflect the Company&#146;s own assumptions about the
    assumptions that market participants would use in pricing an
    asset or liability.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-17
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When available, the Company uses quoted market prices to
    determine the fair value of an asset or liability. If quoted
    market prices are not available, the Company measures fair value
    using valuation techniques that use, when possible, current
    market-based or independently-sourced market parameters, such as
    interest rates and currency rates.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s foreign currency derivative assets relate to
    foreign exchange option or forward contracts involving major
    currencies such as Euro and USD. Since its derivative assets are
    not traded on an exchange, the Company values them using
    valuation models. Interest rate yield curves and foreign
    exchange rates are the significant inputs into these valuation
    models. These inputs are observable in active markets over the
    terms of the instruments the Company holds, and accordingly, it
    classifies these valuation techniques as Level&#160;2 in the
    hierarchy. The Company considers the effect of its own credit
    standing and that of its counterparties in valuations of its
    derivative financial instruments.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008, the fair value measurement of the
    Company&#146;s foreign currency derivative assets that are
    measured at fair value on a recurring basis in periods
    subsequent to their initial recognition is as follows:
</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="46%">&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="9%" 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="9%" 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="8%" 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="9%" 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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fair Value Measurements at Reporting Date Using</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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Quoted Prices<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>
</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>Total Fair<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>in Active<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Significant<BR>
    </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="2" nowrap align="center" valign="bottom">
    <B>Value and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Markets for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Significant<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">
    <B>Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Identical<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Observable<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unobservable<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">
    <B>Value on the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Assets<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Inputs<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Inputs<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>Balance Sheet</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 3)</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">
    Assets:
</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">
    Foreign exchange option contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,136,044
</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">
    &#151;
</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">
    6,136,044
</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">
    &#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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Foreign exchange forward contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    838,020
</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">
    &#151;
</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">
    838,020
</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">
    &#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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,974,064
</TD>
<TD 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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,974,064
</TD>
<TD 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>
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">BANK
    BORROWING</FONT></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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Bank borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,240,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156,022,153
</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">
    Analysis as:
</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">
    Short-term
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,373,932
</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">
    110,664,813
</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">
    Long-term
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,866,203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,357,340
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,240,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156,022,153
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the years ended December&#160;31, 2007 and 2008, the maximum
    bank credit facilities granted to the Company were $79,477,082
    and $216,506,113, respectively, of which $58,240,135 and
    $156,022,153 were drawn down and $21,236,947 and $60,483,960
    were available, respectively.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">a)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Short-term</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The average interest rate on short-term borrowings was 5.85% and
    5.64% per annum for the years ended December&#160;31, 2007 and
    2008, respectively. The borrowings are repayable within one
    year. As of December&#160;31, 2007 and 2008, borrowings of
    $9,339,101 and $5,706,246, respectively, were guaranteed by
    Mr.&#160;Shawn Qu, Chairman, President and Chief Executive
    Officer of the Company.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;19, 2007, CSI Cells Co., Ltd. entered into a
    syndicate loan agreement with local Chinese commercial banks for
    the expansion of solar cell production capacity. The total
    credit facility under this agreement is
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-18
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    $30.0&#160;million or equivalent RMB amount with two tranches.
    The first tranche has a credit limit of $10.0&#160;million,
    which requires repayment within one year. The second tranche has
    a credit limit of $20.0&#160;million which requires repayment of
    $10.0&#160;million in 2009 and $10&#160;million in 2010. CSI
    Cells Co., Ltd. has fully utilized the credit facility drawing
    of $5.0&#160;million in US dollars and $25.0&#160;million in
    RMB. Both tranches bear interest at a floating rate of six-month
    LIBOR+0.8% for US dollar denominated borrowings or the base
    interest rate published by People&#146;s Bank of China for the
    same maturity for RMB denominated borrowings. Interest under the
    first tranche is due monthly in arrears and interest under the
    second tranche is due quarterly in arrears. Outstanding
    borrowings under this agreement were $17,866,203 and $31,312,012
    at December&#160;31, 2007 and 2008, respectively, and were
    secured by the land use right and buildings of CSI Cells Co.,
    Ltd and are guaranteed by Canadian Solar Inc. The borrowing
    contains financial covenants which require that for any fiscal
    year, (i)&#160;the ratio of total liabilities to EBITDA be no
    higher than 3.21, (ii)&#160;the ratio of operating cash flows to
    liabilities be no lower than 0.25 and (iii)&#160;the ratio of
    liabilities to assets be no higher than 60%. CSI Cells Co., Ltd.
    failed to meet all of these covenants as of December&#160;31,
    2008. As CSI Cells Co., Ltd. has not obtained a written waiver
    from the banks, the total outstanding balance as of
    December&#160;31, 2008 is subject to accelerated repayment and
    has been classified as a short-term borrowing.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;19, 2007, CSI Solar Manufacture Inc. entered into a
    syndicated loan agreement with local Chinese commercial banks
    for working capital purposes. The total credit facility under
    this agreement is $20.0&#160;million and is available for three
    years. Each withdrawal is to be repaid within one year. The
    borrowing bears a floating interest rate of six-month LIBOR+0.8%
    for US dollar denominated borrowings or the base interest rate
    published by People&#146;s Bank of China for the same maturity
    for RMB denominated borrowings. Interest is due monthly in
    arrears. The outstanding balance under this agreement was
    $13,000,000 and $10,000,000 as of December&#160;31, 2007 and
    2008 respectively, and was guaranteed by Canadian Solar Inc. The
    borrowing contains financial covenants which require that for
    any fiscal year, (i)&#160;the ratio of liabilities to assets be
    no higher than 65%, (ii)&#160;the ratio of accounts receivable
    balance to revenues be no higher than 45% and (iii)&#160;the
    current ratio be no lower than 125%. CSI Solar Manufacture Inc.
    met all of the above financial covenants as of December&#160;31,
    2007 and 2008.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">b)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-term</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The average interest rate on long-term borrowings was 6.83% and
    7.23% per annum for the years ended December&#160;31, 2007 and
    2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;14, 2008, CSI Cells Co., Ltd. entered into a
    loan agreement of $1,463,140 with the local government for the
    research and development of low-cost solar cells. The borrowing
    was unsecured, interest-free, has a maturity of three years and
    does not contain any financial covenants or restrictions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;18, 2008, CSI Central Solar Power Co., Ltd. entered
    into a loan agreement with a local Chinese commercial bank for
    the purchase of properties. The total credit facility under this
    agreement is $20,483,960 which requires repayment of $5,852,560
    and $14,631,400 in 2009 and 2010, respectively. Interest is due
    quarterly in arrears. The outstanding balance as of
    December&#160;31, 2008 was $20,483,960 and was guaranteed by CSI
    Cells Co., Ltd. The borrowing bears a floating base interest
    rate published by People&#146;s Bank of China for borrowings
    with the same maturities and does not contain any financial
    covenants or restrictions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;27, 2008, CSI Central Solar Power Co., Ltd. entered
    into a loan agreement with a local Chinese commercial bank for
    the construction of solar wafer production lines. The total
    credit facility under this agreement is $29,262,800 which
    requires repayment of $14,631,400 in 2010 and 2011. Interest is
    due quarterly in arrears. The outstanding balance as of
    December&#160;31, 2008 was $29,262,800 and was guaranteed by CSI
    Cells Co., Ltd. The borrowing bears a floating base interest
    rate published by People&#146;s Bank of China for borrowings
    with the same maturities and does not contain any financial
    covenants or restrictions.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-19
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Future principal repayment on the long-term bank loans are as
    follows:
</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="86%">&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="10%" 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 valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,852,560
</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">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,262,800
</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">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,094,540
</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">
    2012
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013 and after
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,209,900
</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">
    Less: future principal repayment related to long-term loan,
    current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,852,560
</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: 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: 10pt">
    Future principal repayment related to long-term loan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,357,340
</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: 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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">c)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest
    expense</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="64%">&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="7%" 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="7%" 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="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Interest capitalized
</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">
    46,617
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,188,135
</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">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,193,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,367,131
</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">
    11,265,576
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total interest incurred
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,193,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,413,748
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,453,711
</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>
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ACCRUED
    WARRANTY COSTS</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s warranty activity is summarized below:
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Beginning balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    874,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,878,755
</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">
    Warranty provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,015,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,978,411
</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">
    Warranty costs incurred
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,633
</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">
    (10,447
</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: 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: -10pt; margin-left: 10pt">
    Ending balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,878,755
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,846,719
</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>
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">CONVERTIBLE
    NOTES</FONT></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">2005
    Convertible Note Subscription Agreement</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;30, 2005, the Company signed a subscription
    agreement with a group of third-party investors to issue two
    tranches of convertible notes. The first tranche of notes with a
    principal value of $8,100,000 was issued on November&#160;30,
    2005. The second tranche of notes with a principal value of
    $3,650,000 was issued on March&#160;30, 2006.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of all two tranches of convertible notes are described
    as follows:
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Maturity date.</I>&#160;&#160;The convertible notes mature on
    November&#160;30, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest.</I>&#160;&#160;The note holders are entitled to
    receive interest at 2% per annum on the principal outstanding,
    in four equal quarterly installments, payable in arrears.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Company fails to pay any principal or interest amounts,
    or other payments in respect of the notes, when due, or if the
    convertible notes are not converted in full into common shares
    on the date requested by the note holders, the convertible notes
    shall bear an extraordinary interest, compounded at a rate of
    twelve percent (12%) per annum for any amounts of overdue
    principal, interest or other payment under the convertible notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-20
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Company has not completed a qualified initial public
    offering (defined as (i)&#160;an offering size of not less than
    $30,000,000, (ii)&#160;total market capitalization of not less
    than $120,000,000, and (iii)&#160;public float of not less than
    twenty-five percent (25%) of the enlarged share capital) prior
    to maturity of the convertible notes, the Company must pay an
    interest premium of ten percent (10%) per annum in respect of
    principal, paid and unpaid interest, unpaid dividends, and
    extraordinary interest.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Withholding taxes.</I>&#160;&#160;All payments in respect of
    the note will be made without withholding or deduction of or on
    account of any present or future taxes, duties, assessments or
    governmental charges of whatever nature imposed or levied by or
    on behalf of the government of Hong Kong, Canada or any
    authority therein or thereof having power to tax unless the
    withholding or deduction of such taxes, duties, assessments or
    governmental charges is required by law.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dividends.</I>&#160;&#160;The stockholder as of the issue
    date is entitled to all audited retained earnings as of
    28&#160;February 2006. The Company shall not declare or pay any
    dividend before the completion of a qualified initial public
    offering or redemption of all convertible notes, except with the
    prior written consent of all holders of the outstanding
    convertible notes.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Conversion.</I>&#160;&#160;The notes are convertible into
    2,378,543 common shares at a conversion rate of $4.94 per share,
    representing 23.79% of the 10,000,000 total expected number of
    Common Shares to be issue on a Fully-Diluted Basis as set forth
    in the subscription agreement. The fair value of the
    Company&#146;s common stock on November&#160;30, 2005 was $5.67
    per share. The notes are convertible (i)&#160;at any time after
    the date of issuance of such notes upon obtaining written
    consents from the note holders requesting conversion to common
    shares, and (ii)&#160;automatically upon the consummation of a
    qualified initial public offering. The conversion rate is
    subject to standard anti-dilutive adjustments and is also
    subject to adjustment in the event that (i)&#160;the
    Company&#146;s audited profit after tax for the twelve month
    period ended February&#160;28, 2006 is less than certain
    predefined amounts, (ii)&#160;the Company&#146;s number of
    shares issued or issuable on a fully diluted basis is different
    from a predefined quantity at conversion, or (iii)&#160;the
    Company issues equity securities at a price below the conversion
    price then in effect.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is required to bifurcate the conversion feature
    pursuant to FASB Statement No.&#160;133, Accounting for
    Derivative Instruments and Hedging Activities
    (&#147;SFAS&#160;133&#148;).
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Redemption.</I>&#160;&#160;If the Company experiences an
    event of default under the subscription agreement (including but
    not limited to a change of control of the Company) prior to
    maturity and upon written demand from the note holders (referred
    to as &#147;early redemption right&#148;), the Company must pay
    the greater of (i)&#160;an interest premium of twelve percent
    (12%) per annum in respect of principal, paid and unpaid
    interest, unpaid dividends, and extraordinary interest, or
    (ii)&#160;the fair value of the Company&#146;s common shares
    that would be held by the note holders on an if-converted basis.
    The Company is required to bifurcate the early redemption right
    pursuant to SFAS&#160;133.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Liquidation preference.</I>&#160;&#160;The convertible notes
    are senior to any common shareholder claims in the event of
    liquidation.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Pledge of shares.</I>&#160;&#160;The Company&#146;s sole
    shareholder pledged 1,133,684&#160;shares to the note holders of
    convertible notes as of December&#160;31, 2005. The pledge
    represents 20% of the shares held by the sole shareholder and
    are pledged as collateral for repayment of the convertible notes.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The $8,100,000 purchase price of convertible notes issued on
    November&#160;30, 2005 was reduced by issuance costs of
    $641,000. The Company allocated $3,363,000 of the net proceeds
    of $7,459,000 to the compound embedded derivative liability
    which was comprised of the bifurcated conversion feature and the
    early redemption right, $843,996 to the freestanding financial
    instruments liability associated with the obligation to issue
    the second tranche of convertible debt to the investors and the
    investors&#146; option to subscribe for a third tranche of
    convertible debt, and $3,252,004 to the convertible debt. The
    resulting discount on the convertible debt is being amortized
    over the three year term using the straight-line method which
    approximates the effective interest rate method.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-21
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2005, the fair values of the convertible
    debt, compound embedded derivative liability, the freestanding
    financial instrument liability were $11,595,000, $3,679,000, and
    $1,107,084, respectively. Changes in the fair value of the
    compound embedded derivative and the freestanding option, which
    is classified within the freestanding financial liability, are
    recognized at each reporting date and are classified as loss on
    change in value of derivatives in the statements 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subsequent to the November&#160;30, 2005 issuance, the Company
    and the note holders amended the terms of the note agreement as
    follows:
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;30, 2006, the Company and the note holders
    executed a supplemental agreement amending certain provisions
    related to events of default prior to conversion or maturity (as
    defined in the subscription agreement). The original terms
    required that, in the event of default, the Company pay the note
    holders the greater of a 12% interest premium or the fair value
    of the common stock underlying the convertible notes on an
    if-converted basis. The terms of the supplemental agreement
    state that in an event of default the Company must pay an
    interest premium of 18% per annum. The terms of the original
    agreement created a provision which allowed for potential net
    settlement of the Company&#146;s common shares, and accordingly,
    prior to the supplemental agreement, the Company was required to
    bifurcate the conversion option from the host debt instrument as
    it met the test of a derivative instrument.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since the supplemental agreement removed the net settlement
    provision the Company was no longer required to bifurcate the
    conversion option. Accordingly, on March&#160;30, 2006, the
    Company derecognized the embedded derivative liability related
    to the conversion option. Because the early redemption put
    option continues to meet the definition of a derivative
    instrument after the March&#160;30, 2006 modification, the early
    redemption option continues to be recorded by the Company as a
    derivative liability and reported at its fair value with changes
    in its fair value recognized in the statements of operations.
    The early redemption option was valued by an independent valuer
    using the Black-Scholes option pricing model.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to revising the provisions related to events of
    default, the March&#160;30, 2006 supplemental agreement revised
    the original subscription agreement to revise the profit after
    tax computation to exclude all costs and charges related to the
    issuance of the convertible notes, including all costs and
    charges related to the recording of the derivative and
    freestanding financial instruments associated with the
    convertible notes, including changes to their fair values. The
    supplemental agreement effectively requires that the Company
    achieve a profit after tax of $6&#160;million for the
    <FONT style="white-space: nowrap">12-month</FONT>
    period ended February&#160;28, 2006, reduced by the amount of
    all costs and charges related to the issuance of the convertible
    notes and related derivative and freestanding financial
    instruments.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, the supplemental agreement revised the requirement
    under the original subscription agreement that the Company
    deliver to the note holders audited financial statements for the
    year ended December&#160;31, 2004 of profit after tax of
    $1&#160;million, and the eight-month period ended
    August&#160;31, 2005 of profit after tax of $4.5&#160;million,
    under IFRS and delivered to the note holders by January&#160;31,
    2006. The supplement agreement changed the date of delivery of
    the audited financial statements to April&#160;30, 2006.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;9, 2006, the Company and the note holders executed
    a supplemental agreement removing the provision that would have
    given the note holders an adjustment on the conversion price in
    the event the Company&#146;s profit after tax for the
    <FONT style="white-space: nowrap">12-month</FONT>
    period ended February&#160;28, 2006 was less than certain
    predefined amounts.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;1, 2006, the Company and the note holders executed
    a supplemental agreement amending the following provisions:
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest</I>&#160;&#160;The note shall bear interest from the
    issuance date at the rate of 12% per annum on the principal
    amount of the note outstanding. Such interest shall be payable
    as follows:
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;2% per annum shall be payable in cash by four equal
    quarterly installments in arrears, and (ii)&#160;10% per annum
    shall be payable in a balloon payment as at the date of
    conversion or redemption as the case may be.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-22
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Taxes</I>&#160;&#160;No withholding taxes shall be payable by
    the Company in respect of any amounts deemed under the Canadian
    income tax laws to constitute interest paid upon conversion 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Conversion</I>&#160;&#160;The conversion price per common
    share shall be adjusted to be US$5.77 upon the full conversion
    of all notes of an aggregate principal amount of $11,750,000.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Share split</I>&#160;&#160;Immediately following the full
    conversion of all notes, the outstanding common shares owned by
    Mr.&#160;Shawn Qu and the note holders will be split on a 1.17
    for 1 basis such that the aggregate shareholding of the note
    holders in the Company following the share split shall be
    23.79%, or a conversion ratio of $4.94, effectively the original
    conversion ratio on a post-split basis.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;1, 2006, the notes of an aggregate principal amount
    of $11,750,000 were converted into 2,036,196 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;1, 2006, Mr.&#160;Shawn Qu, the sole shareholder
    prior to conversion of the notes entered into a put option
    agreement with the note holders to grant the note holders an
    option to sell back all the common shares from conversion of the
    notes to Mr.&#160;Shawn Qu at the principal amount of the notes
    of $11,750,000. The put option is exercisable from time to time
    in whole or in part (i)&#160;at any time from March&#160;31,
    2007 (inclusive) to April&#160;10, 2007 (inclusive) in the event
    that the Company has not completed a Qualified IPO on or before
    March&#160;31, 2007 or (ii)&#160;at any time after the
    occurrence and during the continuance of an event of default. On
    July&#160;1, 2006, Mr.&#160;Shawn Qu, stockholder of the
    Company, pledged 6,757,000&#160;shares in favor of the note
    holders. The put option terminated upon the initial public
    offering on November&#160;9, 2006.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;11, 2006, the Board of Directors approved the share
    split on a 1.17 for 1 basis for the shares owned by
    Mr.&#160;Shawn Qu and the note holders. On October&#160;19,
    2006, the Board of Directors approved the share split on a 2.33
    for 1 basis for 9,000,000&#160;shares owned by Mr.&#160;Shawn Qu
    and the note holders. After the share split,
    15,427,995&#160;shares are owned by Mr.&#160;Shawn Qu, 5,542,005
    are owned by the note holders. All share information relating to
    common shares of the Company in the accompanying financial
    statements have been adjusted retroactively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the note holders converted all of their convertible notes
    into the Company&#146;s common shares on July&#160;1, 2006, they
    acknowledged and agreed that Mr.&#160;Shawn Qu&#146;s right to
    the Company&#146;s retained earnings as of February&#160;28,
    2006 under the dividend provision of the convertible notes would
    remain in effect. The note holders and Mr.&#160;Shawn Qu agreed
    to give effect to Mr.&#160;Shawn Qu&#146;s right by:
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;the transfer to Mr.&#160;Shawn Qu of 108,667 common
    shares from the note holders;&#160;and
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;the issue under the Company&#146;s stock-based
    compensation plan of (a)&#160;116,500 restricted shares, and
    (b)&#160;options to purchase 46,600 common shares at an exercise
    price of $4.29 per common share, both with vesting periods of
    four years, to Hanbing Zhang, who is the wife of Mr.&#160;Shawn
    Qu.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">2007
    Convertible Note Subscription Agreement</FONT></U></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;11, 2007, the Company signed a subscription
    agreement for the issuance of convertible notes of $75,000,000
    (the &#147;2007 Notes&#148;).
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the 2007 Notes are described as follows:
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Maturity date.</I>&#160;&#160;The 2007 Notes mature on
    December&#160;15, 2017.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest.</I>&#160;&#160;The 2007 Note holders are entitled
    to receive interest at 6% per annum on the principal
    outstanding, in semi-annually installments, payable in arrears.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Conversion.</I>&#160;&#160;The initial conversion rate is
    50.6073&#160;shares per $1,000 initial principal amount, which
    represents an initial conversion price of approximately $19.76
    per share. The 2007 Notes are convertible at any time prior to
    maturity. The conversion rate is subject to change for certain
    anti-dilution events and upon a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-23
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    change in control. If the holders elect to convert the 2007
    Notes upon a change of control, the conversion rate will
    increase by a number of additional shares as determined by
    reference to an adjustment schedule based on the date on which
    the change in control becomes effective and the price paid per
    common share in the transaction (referred to as the
    &#147;Fundamental Change Make-Whole Premium&#148;). The
    Make-Whole Premium is intended to compensate holders for the
    loss of time value upon early exercise.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Redemption.</I>&#160;&#160;The holders may require the
    Company to repurchase the 2007 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. The Company may redeem the notes on
    or after December&#160;24, 2012 at a redemption price equal 100%
    of the principal amount of the notes, plus accrued and unpaid
    interest, (i)&#160;in whole or in part 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 2007 Notes originally issued
    have been redeemed, converted or repurchased and, in each case,
    cancelled.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Offering costs incurred for the issuance of the 2007 Notes
    amounted to $3,351,634, which were deferred and amortized
    through interest expense over the period from December&#160;10,
    2007, the date of issuance, to December&#160;24, 2012, the
    earliest redemption date, using the effective interest rate
    method. Amortization expense of $55,861 and $243,729 was
    recorded for the years ended December&#160;31, 2007 and 2008,
    respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;27, 2008, the Company offered to increase the
    conversion rate, based on a specified formula, to induce the
    holders of the 2007 Notes to convert their notes into the
    Company&#146;s common shares (the &#147;Offer&#148;) on or
    before June&#160;24, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;27, 2008, the Company announced an increased
    conversion rate of 53.6061 in accordance with the terms of the
    Offer and issued 3,966,841 common shares in exchange for
    $74&#160;million in principal amount of the 2007 Notes. The
    induced conversion resulted in a charge to earnings of
    $10,170,118, which was equal to the fair value of all common
    shares and cash consideration transferred in the transaction in
    excess of the fair value of the common shares issuable pursuant
    to the original conversion terms. In addition, upon conversion,
    $3,016,287 in unamortized debt issuance costs were reclassified
    to common shares.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">RESTRICTED
    NET ASSETS</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As stipulated by the relevant laws and regulations applicable to
    China&#146;s foreign investment enterprise, the Company&#146;s
    PRC subsidiaries are required to make appropriations from net
    income as determined under accounting principles generally
    accepted in the PRC (&#147;PRC GAAP&#148;) to non distributable
    reserves which include a general reserve, an enterprise
    expansion reserve and a staff welfare and bonus reserve.
    Wholly-owned PRC subsidiaries are not required to make
    appropriations to the enterprise expansion reserve but
    appropriations to the general reserve are required to be made at
    not less than 10% of the profit after tax as determined under
    PRC GAAP. The staff welfare and bonus reserve is determined by
    the board 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The general reserve is used to offset future losses. The
    subsidiaries may, upon a resolution passed by the stockholder,
    convert the general reserve into capital. The staff welfare and
    bonus reserve is used for the collective welfare of the employee
    of the subsidiaries. The enterprise expansion reserve is for the
    expansion of the subsidiaries&#146; operations and can be
    converted to capital subject to approval by the relevant
    authorities. These reserves represent appropriations of the
    retained earnings determined in accordance with Chinese law.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the general reserve, the Company&#146;s PRC
    subsidiaries are required to obtain approval from the local PRC
    government prior to distributing any registered share capital.
    Accordingly, both the appropriations to general reserve and the
    registered share capital of the Company&#146;s PRC subsidiaries
    are considered as restricted net assets amounting to $82,408,533
    and $178,287,562 as of December&#160;31, 2007 and 2008,
    respectively.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-24
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">INCOME
    TAXES</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision for income taxes is comprised of the following:
</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="60%">&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="9%" 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 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Income (Loss) before Income Tax
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Canada
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,218,572
</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">
    (2,628,043
</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">
    (32,968,698
</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: -10pt; margin-left: 20pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,220,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,233,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,496,558
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,997,870
</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">
    (394,654
</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">
    527,860
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Tax
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Canada
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (115,061
</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">
    569,396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,268,794
</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">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    363,719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    471,220
</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">
    2,837,939
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    248,658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,040,616
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,106,733
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred Tax
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Canada
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    263,309
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (263,279
</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">
    834,187
</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">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (79,973
</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">
    (962,315
</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">
    (3,024,814
</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: 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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    183,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,225,594
</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">
    (2,190,627
</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: 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: -10pt; margin-left: 10pt">
    Total Income Tax Provision
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Canada
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    148,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    306,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,102,981
</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">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    283,746
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (491,095
</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">
    (186,875
</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: 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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    431,994
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (184,978
</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">
    9,916,106
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company was incorporated in Ontario, Canada and is subject
    to both federal and Ontario provincial corporate income taxes at
    a rate of 36.12%, 36.12% and 33.50% for the years ended 2006,
    2007 and 2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The major operating subsidiaries, CSI Solartronics (Changshu)
    Co., Ltd., CSI Solar Manufacture Inc., CSI Cells Co., Ltd., CSI
    Central Solar Power Co., Ltd., and Changshu CSI Advanced Solar
    Inc. were governed by the PRC Enterprise Income Tax Law
    (&#147;EIT Law&#148;), which replaced the old Income Tax Law of
    PRC Concerning Foreign Investment and Foreign Enterprises and
    various local income tax regulations (the old &#147;FEIT
    Law&#148;) effective from January&#160;1, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the old FEIT Law, foreign-invested manufacturing
    enterprises were subject to income tax at a statutory rate of
    33% (30% of state income tax plus 3% local income tax) on PRC
    taxable income. However, a preferential tax rate (24% or 15% of
    state income tax) was available for foreign-investment
    manufacturing enterprises located in specific geographical
    areas. In addition, under the old FEIT Law, foreign-invested
    manufacturing enterprises were entitled to tax exemption from
    the state income tax for their first two profitable years of
    operation, after taking into account any tax losses brought
    forward from prior years, and a 50% tax deduction for the
    succeeding three years. Local income tax was fully exempted
    during the tax holiday.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;16, 2007, the PRC government promulgated the EIT
    Law. The PRC EIT Law provides that enterprises established under
    the laws of foreign jurisdictions and whose &#147;de facto
    management bodies&#148; are located within the PRC territory are
    considered PRC resident enterprises, and will be subject to the
    PRC EIT at the rate of 25% on worldwide income. While the
    Chinese tax residency concept of place of management and control
    is vaguely defined in the new EIT Law, the Implementation Rules
    (&#147;IRs&#148;) of the new EIT Law look to substantial and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-25
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    comprehensive management and control over the manufacturing and
    business operations, personnel, accounting and properties of an
    enterprise.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the new EIT Law, domestically-owned enterprises and
    foreign-invested enterprises (&#147;FIEs&#148;) are subject to a
    uniform tax rate of 25%. While the new EIT Law equalizes the tax
    rates for FIEs and domestically-owned companies, preferential
    tax treatment (e.g. tax rate of 15%) will continue to be given
    to companies in certain encouraged sectors and to entities
    classified as state-encouraged &#147;New High Technology&#148;
    companies regardless of whether they are domestically-owned
    enterprises or FIEs. In 2008, CSI Solartronics (Changshu) Co.,
    Ltd. was recognized as a state-encouraged &#147;New High
    Technology&#148; company and was entitled to a 15% preferential
    tax rate for fiscal 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The new EIT Law also provides a five-year transition period
    starting from its effective date for those enterprises which
    were established before the promulgation date of the new EIT Law
    and which were entitled to a preferential lower tax rate and tax
    holiday under the old FEIT Law or regulations. The tax rate of
    such enterprises will transition to the 25% uniform tax rate
    within a five-year transition period and the tax holiday, which
    was enjoyed by such enterprises before the effective date of the
    new EIT Law, may continue to be enjoyed until the end of the tax
    holiday.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the circular promulgated by the PRC State Council on
    the Implementation of the Grandfathering Preferential Policies
    under the PRC Enterprise Income Tax Law (Decree No. [2007] 39),
    or the Implementation Circular, only a certain number of the
    preferential policies provided under the former Income Tax Law,
    regulations, and documents promulgated under the legal authority
    of the State Council are eligible to be grandfathered in
    accordance with Implementation Circular. With respect to our PRC
    operations, the &#147;two-year exemption&#148; and
    &#147;three-year half reduction&#148; tax preferential policies
    enjoyed by our PRC subsidiaries are included in the scope of
    those grandfathered by the Implementation Circular.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accordingly, from January&#160;1, 2008, the tax rates applicable
    on the Company&#146;s major operating subsidiaries are
    summarized as follows:
</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: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="27%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Tax Rate under the old FEIT law
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Tax holiday under the old EIT Law
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Transitional Tax rate under the new EIT Law
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    CSI Solartronics (Changshu) Co., Ltd.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    27% (24% state tax + 3% local tax)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2-year exemption ended December 31, 2003 + 3&#160;year half
    reduction ended December 31, 2006; 12% for 2007 due to the
    technology advanced enterprise status
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    15% (obtained &#147;New High Technology&#148; status under the
    new EIT law in 2008)
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    CSI Solar Manufacture Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    18% (15% state tax + 3% local tax)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2-year exemption ended December 31, 2006 + 3&#160;year half
    reduction ended December 31, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    12.5% (half reduction on 25%) for 2008 and 2009 and 25% for 2010
    and after
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    CSI Cells Co., Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    27% (24% state tax + 3% local tax)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2-year exemption ended December 31, 2008 + 3&#160;year half
    reduction ended December 31, 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Exempted for 2008 and 12.5% for 2009, 2010 and 2011 (half
    reduction on 25%)
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    CSI Central Solar Power Co., Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    33% (30% state tax + 3% local tax)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2-year exemption ended December 31, 2008 + 3&#160;year half
    reduction ended December 31, 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Exempted for 2008 and 12.5% for 2009, 2010 and 2011 (half
    reduction on 25%)
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Changshu CSI Advanced Solar Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    27% (24% state tax + 3% local tax)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2- year exemption ended December 31, 2009 + 3&#160;year half
    reduction ended December 31, 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Exempted for 2008 and 2009 and 12.5% for 2010, 2011 and 2012
    (half reduction on 25%)
</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>
    F-26
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the EIT Law and IRs issued by the State Council, PRC
    income tax at the rate of 10% is applicable to interest and
    dividends payable to investors that are &#147;non-resident
    enterprises,&#148; which do not have an establishment or place
    of business in the PRC, or which have such establishment or
    place of business but the relevant income is not effectively
    connected with the establishment or place of business, to the
    extent such interest or dividends have their sources within the
    PRC. If the Company is deemed to be a PRC &#147;resident
    enterprise&#148;, dividends distributed from the Company&#146;s
    PRC subsidiaries to the Company, could be exempt from Chinese
    dividend withholding tax. However, dividends from the Company to
    ultimate shareholders would be subject to Chinese withholding
    tax at 10% or a lower treaty rate. Undistributed earnings of the
    Company&#146;s foreign subsidiaries of approximately
    $49.3&#160;million at December&#160;31, 2008 are considered to
    be indefinitely reinvested and no provision for withholding
    taxes has been provided thereon.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective from January&#160;1, 2007, the Company adopted
    FIN&#160;48, which prescribes a more-likely-than-not threshold
    for financial statement recognition and measurement of a tax
    position taken in the tax return. This interpretation also
    provides guidance on de-recognition of income tax assets and
    liabilities, classification of current and deferred income tax
    assets and liabilities, accounting for interest and penalties
    associated with tax positions, accounting for income taxes in
    interim periods and income tax disclosures.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The adoption of FIN&#160;48 reduced retained earnings as of
    January&#160;1, 2007, by $612,199, including interest and
    penalties, with a corresponding increase in the liability for
    uncertain tax positions. The aforementioned liability is
    recorded in liability for uncertain tax positions in the
    consolidated balance sheet. In accordance with the
    Company&#146;s policies, it accrues and classifies interest and
    penalties related to unrecognized tax benefits as a component of
    the income tax provision. The amount of interest and penalties
    as of January&#160;1, 2007 was approximately $65,467, and the
    additional interest and penalties as of December&#160;31, 2007
    and 2008 was approximately $197,636 and $588,671, respectively.
    The Company does not anticipate any significant increases or
    decreases to its liabilities for unrecognized tax benefits
    within the next 12&#160;months.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is subject to taxation in Canada and China. The
    Company&#146;s tax years from 2004 through 2008 are subject to
    examination by the tax authorities of Canada. With few
    exceptions, the Company is no longer subject to federal taxes
    for years prior to 2005 and Ontario taxes for years prior to
    2004. The Company&#146;s tax years from 2002 through 2008 are
    subject to examination by the PRC tax authorities due to its
    permanent establishment in China.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s major operating entity in China is subject to
    examination by the PRC tax authorities from 2003 through 2008 on
    non-transfer pricing matters, and from inception through the end
    of 2008 on transfer pricing matters.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table indicates the changes to the recorded
    liabilities for the Company&#146;s unrecognized tax benefits for
    the years ended December&#160;31, 2007 and 2008, respectively.
    The term &#147;unrecognized tax benefits&#148; in FIN&#160;48
    refers to the differences between a tax position taken or
    expected to be taken in a tax return and the benefit measured
    and recognized in the financial statements in accordance with
    the guidelines of FIN&#160;48.
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Beginning balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    612,199
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,278,482
</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">
    Gross increases&#160;&#151; additions for tax positions and the
    additional interest and penalties taken for the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,666,283
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,425,348
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ending balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,278,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,703,830
</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>
</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>
    F-27
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal components of deferred income tax assets are as
    follows:
</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="69%">&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="3%">&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 -->
</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>At December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At December&#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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Deferred tax assets:
</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">
    Issuance costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,439,086
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,584,143
</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">
    Accrued warranty costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,260,517
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,448,387
</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">
    Inventory write-down
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    247,982
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,138,259
</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">
    Foreign tax credit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,048,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,064,301
</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">
    Net loss carried forward
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,123,320
</TD>
<TD 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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Others
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    663,447
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    893,387
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,782,527
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,128,477
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Analysis as:
</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">
    Current
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,816,641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,130,559
</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">
    Non-current
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,965,886
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,997,918
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,782,527
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,128,477
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reconciliation between the provision for income tax computed by
    applying Canadian federal and provincial statutory tax rates to
    income before income taxes and the actual provision and benefit
    for income taxes is as follows:
</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="77%">&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="4%" 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 -->
</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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Combined federal and provincial income tax rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</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">
    36
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Taxable income (loss) not included in pre-tax income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (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">
    701
</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">
    1,540
</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">
    Expenses not deductible for tax purpose
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (55
</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">
    (1,126
</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">
    1,037
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tax exemption and tax relief granted to the Company
</DIV>
</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">
    %
</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">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,000
</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">
    Effect of different tax rate of subsidiary operation in other
    jurisdiction
</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">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132
</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">
    (708
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FIN&#160;48 liability
</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">
    (144
</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">
    1,495
</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">
    Change of tax rates in the following years
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (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">
    65
</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">
    (644
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exchange gain (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (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">
    42
</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">
    125
</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: 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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (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">
    47
</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">
    1,879
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate amount and per share effect of the tax holiday are
    as follows:
</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="65%">&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="7%" 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="7%" 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="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    The aggregate dollar effect
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,429,352
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,345,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,281,258
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per share effect&#160;&#151; basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.08
</TD>
<TD 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">
    0.17
</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>
</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>
    F-28
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">12.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">EARNINGS
    PER SHARE</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the computation of basic and
    diluted loss per share for the periods indicated:
</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="56%">&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="10%" 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="10%" 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="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Loss available to common stockholder&#160;&#151; basic and
    diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,429,864
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (209,676
</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">
    (9,388,246
</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: 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: -10pt; margin-left: 10pt">
    Weighted average number of common shares&#160;&#151; basic and
    diluted
</DIV>
</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">
    27,283,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,566,503
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Basic and diluted loss per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.30
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Diluted loss per share calculation excludes 2,361,376, 468,947
    and 790,933 common shares issuable upon the assumed conversion
    of the convertible debt, share options and restricted shares for
    2006, 2007 and 2008, respectively, as their effect would have
    been anti-dilutive.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">13.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">RELATED
    PARTY BALANCES AND TRANSACTIONS</FONT></B>
</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 2%; 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 balances:</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount due to related party as of December&#160;31, 2008 is
    a government award payable to Mr.&#160;Shawn Qu, CEO, director
    and stockholder of the Company, who has beneficial interest in
    the Company.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount due to related party as of December&#160;31, 2007
    represents consulting fees payable to Swift Allies Inc., owned
    by Mr.&#160;Shawn Qu, CEO, director and stockholder of the
    Company. The amount of consulting fee payable was unsecured and
    interest free and was fully repaid during the year ended
    December&#160;31, 2008.
</DIV>

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

<DIV align="left" style="margin-left: 2%; 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company borrowed $30&#160;million in June 2008 from
    Mr.&#160;Shawn Qu, CEO, director and stockholder of the Company,
    with an interest rate of 7%. The borrowing was used for working
    capital purposes and was repaid in December 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the years ended December&#160;31, 2006, 2007 and 2008,
    the Company paid loan interest to Mr.&#160;Shawn Qu, CEO,
    director and stockholder of the Company, in the amount of $nil,
    $nil and $737,543, respectively.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">14.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">COMMITMENTS
    AND CONTINGENCIES</FONT></B>
</TD>
</TR>

</TABLE>

<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: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">a)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Operating
    lease commitments</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has operating lease agreements principally for its
    office properties in the PRC. Such leases have remaining terms
    ranging from 1 to 97&#160;months and are renewable upon
    negotiation. Rental expenses were $218,785, $521,778, $1,202,904
    for the years ended December&#160;31, 2006, 2007 and 2008,
    respectively.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-29
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Future minimum lease payments under non-cancelable operating
    lease agreements at December&#160;31, 2008 were as follows:
</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="89%">&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="7%" 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="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>December 31</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</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">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    930,012
</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">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    514,708
</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">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,462
</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">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,884
</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">
    2013 and after
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124,516
</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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,646,582
</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: 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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">b)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Property,
    plant and equipment purchase commitments</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008, short-term commitments outstanding
    for the purchase of property, plant and equipment approximated
    $55,704,628.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">c)&#160;&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Supply
    purchase commitments</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to secure future silicon materials, solar wafers and
    solar cell supply, the Company entered into several long-term
    supply agreements with overseas and domestic suppliers in the
    past four years. Under such agreements, the suppliers agreed to
    provide the Company with specified quantities of silicon
    materials, solar wafers and solar cells, and the Company has
    made prepayments to these suppliers in accordance with the
    supply contracts. The prices of some supply contracts were
    pre-determined and others were subject to adjustment to reflect
    the prevailing market level when transactions occur.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total purchases under these long-term agreements were
    $3&#160;million, $50&#160;million and $45&#160;million in 2006,
    2007 and 2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Company has entered into several short-term
    purchase agreements with certain suppliers whereby the Company
    is committed to purchase a minimum amount of raw materials to be
    used in the manufacture of its products. As of December&#160;31,
    2008, future minimum purchases outstanding under the agreements
    approximated $25,822,140.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a schedule, by year, of future minimum
    obligation under all supply agreements as of December&#160;31,
    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 -->
<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="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Twelve Months Ending December 31:</B>
</DIV>
</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">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    296,344,577
</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">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    627,281,028
</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">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    765,861,464
</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">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    774,894,841
</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">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    738,161,388
</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">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,354,886,978
</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: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,557,430,276
</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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-30
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; 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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">15.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SEGMENT
    INFORMATION</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company primarily operates in a single reportable business
    segment that includes the design, development and manufacture of
    solar power products.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the Company&#146;s net revenues
    generated from different geographic locations:
</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="58%">&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="10%" 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="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Europe:
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#151; Germany
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,787,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    206,740,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    438,101,658
</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">
    &#151; Spain
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,825,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,628,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188,133,256
</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">
    &#151; Others
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,367,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,218,476
</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">
    4,912,021
</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: 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: -10pt; margin-left: 10pt">
    Europe Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,980,783
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    286,587,917
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    631,146,935
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Asia:
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#151; China
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,091,562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,608,046
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,356,557
</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">
    &#151; Others
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,996,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,214,174
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Asia Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,200,623
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,604,697
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,570,731
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    America
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,030,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,605,057
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,288,690
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total net revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,212,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    302,797,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    705,006,356
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Substantially all of the Company&#146;s long-lived assets are
    located in the PRC.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">16.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">MAJOR
    CUSTOMERS</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Details of customers accounting for 10% or more of total net
    revenues are as follows:
</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="61%">&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="7%" 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 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Company A
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,119,666
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103,620,514
</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">
    Company B
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,540,156
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,628,315
</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">
    Company C
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,361,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,660,435
</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">
    Company D
</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">
    63,926,118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Company E
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,737,337
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</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">
    Company F
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,893,121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD 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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Company G
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,189,588
</TD>
<TD 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>
</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=456 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">
    Less than 10%</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accounts receivable from the three customers with the
    largest receivable balances represents 42%, 29%, 10% of the
    balance of the account at December&#160;31, 2007, and 55%, 18%,
    16% of the balance of the account at December&#160;31, 2008,
    respectively.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">17.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">EMPLOYEE
    BENEFIT PLANS</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Employees of the Company located in the PRC are covered by the
    retirement schemes defined by local practice and regulations,
    which are essentially defined contribution schemes. The
    calculation of contributions for these eligible employees is
    based on 18% of the applicable payroll cost. The expense paid by
    the Company to these
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-31
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    defined contributions schemes was $79,982, $351,822 and
    $1,408,764 for the years ended December&#160;31, 2006, 2007 and
    2008, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Company is required by PRC law to contribute
    approximately 9%, 8%, 2% and 2% of applicable salaries for
    medical insurance benefits, housing funds, unemployment and
    other statutory benefits, respectively. The PRC government is
    directly responsible for the payment of the benefits to these
    employees. The amounts contributed for these benefits were
    $87,281, $335,891 and $1,294,408 for the years ended
    December&#160;31, 2006, 2007 and 2008, respectively.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">18.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SHARE
    OPTIONS</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to 2006, the Company did not grant share-based awards to
    employees, directors or external consultants who rendered
    services to the Company.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;30, 2006, the Board of Directors approved the
    adoption of a share incentive plan to provide additional
    incentives to employees, directors or external consultants. The
    maximum aggregate number of shares which may be issued pursuant
    to all awards (including options) is 2,330,000&#160;shares, plus
    for awards other than incentive option shares, an annual
    increase to be added on the first business day of each calendar
    year beginning in 2007 equal to the lesser of one percent (1%)
    of the number of common shares outstanding as of such date, or a
    lesser number of common shares determined by the Board of
    Directors or a committee designated by the Board. The share
    incentive plan will expire on, and no awards may be granted
    after, March&#160;15, 2016. Under the terms of the share
    incentive plan, options are generally granted with an exercise
    price equal to the fair market value of the Company&#146;s
    ordinary shares and expire ten years from the date of grant.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Options
    to Employees</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008, there was $7,341,136 in total
    unrecognized compensation expense related to share-based
    compensation awards, which is expected to be recognized over a
    weighted-average period of 1.98&#160;years. During the year
    ended December&#160;31, 2006, 2007 and 2008, $3,612,911,
    $4,833,422 and $6,477,909 was recognized as compensation
    expense, respectively. There is no income tax benefit recognized
    in the income statement for the share-based compensation
    arrangements in 2006, 2007 and 2008.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to November&#160;15, 2006, the date of our initial public
    offering, the derived fair value of the ordinary shares
    underlying the options was determined by management based on a
    number of factors, including a retrospective third-party
    valuation using generally accepted valuation methodologies. Such
    methodologies included a weighted-average equity value derived
    by using a combination of the discounted cash flow method, a
    method within the income approach whereby the present value of
    future expected net cash flows is calculated using a discount
    rate and the guideline companies method, which incorporates
    certain assumptions including the market performance of
    comparable listed companies as well as the financial results and
    growth trends of the Company.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For all stock options granted before December&#160;31, 2006, the
    Company used the Black-Scholes option-pricing model to estimate
    the fair value of each stock option grant. The use of a
    valuation model requires the Company to make certain assumptions
    with respect to selected model inputs. Effective from
    January&#160;1, 2007, the Company began utilizing the Binomial
    option-pricing model as the Company believes that such model
    produces a more accurate result in estimating the fair value of
    stock options.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-32
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following assumptions were used to estimate the stock
    options granted in 2006, 2007 and 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 -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</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 nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</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">
    Risk free rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5.27%<FONT style="font-family: Symbol; font-variant: normal">&#126;</FONT>5.72%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5.31%<FONT style="font-family: Symbol; font-variant: normal">&#126;</FONT>6.15%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5.14%<FONT style="font-family: Symbol; font-variant: normal">&#126;</FONT>5.95%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average expected exercise term
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    6.13&#160;years
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    n/a
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    n/a
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Volatility ratio
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    66%<FONT style="font-family: Symbol; font-variant: normal">&#126;</FONT>69%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    79%<FONT style="font-family: Symbol; font-variant: normal">&#126;</FONT>81%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    78%<FONT style="font-family: Symbol; font-variant: normal">&#126;</FONT>79%
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividend yield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual exit rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    n/a
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    6%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    8%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Suboptimal exercise factor
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    n/a
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3.27
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3.27<FONT style="font-family: Symbol; font-variant: normal">&#126;</FONT>3.70
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the option activity is as follows:
</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="53%">&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="7%" 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="5%" 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="6%" 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="10%" 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="center" valign="bottom">
&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>Weighted<BR>
    </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="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </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="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Remaining<BR>
    </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="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Contract<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate<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>of Options</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Terms</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Intrinsic Value</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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Options outstanding at January&#160;1, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,630,395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.55
</TD>
<TD 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">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.00
</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">
&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">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (391,143
</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">
    4.95
</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">
&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: 20pt">
    Cancelled or Forfeited
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (87,715
</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">
    4.18
</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">
&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="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>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options outstanding at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,368,873
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.33
</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">
    8&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,285,886
</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>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options vested or expected to vest at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,298,614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.41
</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">
    8&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,150,374
</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>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options exercisable at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    568,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.61
</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">
    8&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    737,372
</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>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&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 align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The weighted average grant-date fair values of options in 2006,
    2007 and 2008 were $12.98, $6.13 and $22.15, respectively. The
    total intrinsic value of options exercised during the year ended
    December&#160;31, 2006, 2007 and 2008 was $nil, $650,086 and
    $13,594,533, respectively.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Options
    and Restricted shares to Non-employees</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;30, 2006, the Company granted 116,500 restricted
    shares to certain consultants for services to be rendered in the
    two-year period from the date of grant. These shares vested on
    the anniversary date of June&#160;30, 2007 and 2008 on the
    straight-line basis. On April&#160;13, 2007, the Company granted
    11,650&#160;share options to its external consultants in
    exchange for its consulting services. The options had an
    exercise price of $15 and vested immediately. The Company
    recorded compensation expenses of $488,392, $952,693 and
    $1,521,353 during the years ended December&#160;31, 2006, 2007
    and 2008 over the vesting period, with the final computation of
    fair value measured on the vesting date of these non-employee
    awards.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restricted
    shares to Employees</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company granted 333,190 and 116,500, restricted shares to
    employees in May 2006 and July 2006, respectively. The
    restricted shares were granted at nominal value and generally
    vest over periods from one to four years based on the specific
    terms of the grants. The difference between the exercise price
    of the options and the fair market value of the Company&#146;s
    ordinary share at the date of grant resulted in total
    compensation cost of approximately $7.1&#160;million that will
    be recognized ratably over the vesting period. During the years
    ended December&#160;31, 2006, 2007 and 2008, $2,043,576,
    $3,315,677 and $1,102,740 were amortized as compensation
    expenses, respectively.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-33
</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: 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">CANADIAN
    SOLAR INC.<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">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008, there was $646,536 of total
    unrecognized share-based compensation related to unvested
    restricted share awards. That cost is expected to be recognized
    over an estimated weighted average amortization period of
    1.57&#160;years.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the status of the Company&#146;s unvested
    restricted shares granted to both employee and non-employee is
    presented below:
</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="73%">&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="6%" 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="12%" 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="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted Average<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">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Grant-Date<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>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fair Value</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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Unvested at January&#160;1, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    311,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.83
</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">
    Granted
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vested
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (252,805
</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">
    16.22
</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">
    Cancelled or Forfeited
</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">
&nbsp;
</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>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unvested at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.12
</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>
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total fair value of restricted shares vested during the year
    ended December&#160;31, 2006, 2007 and 2008 was $nil, $4,138,995
    and $6,365,572, respectively.
</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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">19.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUBSEQUENT
    EVENTS</FONT></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subsequent to December&#160;31, 2008, the following events
    occurred:
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the first quarter of 2009, the Company executed several
    agreements with Chinese commercial banks for working capital
    loans totaling $41.7&#160;million with maturities ranging from
    six months to one year and bearing interest from 2.936% to
    5.310% per annum.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-34
</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='307'>
<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">Additional
    Information&#160;&#151; Financial Statements
    Schedule&#160;1</A><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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Schedule&#160;I has been provided pursuant to the requirements
    of
    <FONT style="white-space: nowrap">Rule&#160;12-04(a)</FONT>
    and 4-08(e)(3) of
    <FONT style="white-space: nowrap">Regulation&#160;S-X,</FONT>
    which require condensed financial information as to financial
    position, changes in financial position and results of
    operations of a parent company as of the same dates and for the
    same periods for which audited consolidated financial statements
    have been presented as the restricted net assets of Canadian
    Solar Inc.&#146;s consolidated and unconsolidated subsidiaries
    not available for distribution to Canadian Solar Inc. as of
    December&#160;31, 2007 and 2008 of $82,408,533 and $178,287,562
    , respectively, exceeded the 25% threshold.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These financial statements have been prepared in conformity with
    accounting principles generally accepted in the United States.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-35
</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">Financial
    Information of Parent Company<BR>
    <BR>
    <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">Balance
    Sheets</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; 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 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>December&#160;31,</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>2007</B>
</TD>
<TD>
&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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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 colspan="9" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>ASSETS</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets:
</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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,411,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,289,610
</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">
    Accounts receivable, net of allowance for doubtful accounts of
    $204,382 and $5,062,312 at December&#160;31, 2007 and 2008,
    respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,990,021
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,682,715
</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">
    Inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    895,472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,257,231
</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">
    Advances to suppliers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,359,795
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,005,903
</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">
    Amounts due from related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,250,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,496,732
</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">
    Deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,226,879
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,396,854
</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">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    848,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    624,118
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132,982,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,753,163
</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">
    Advances to suppliers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,102,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,528,000
</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">
    Investment in subsidiaries
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94,130,246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    229,598,581
</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">
    Deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,609,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,512,202
</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">
    Other non-current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,295,775
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,057,175
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL ASSETS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    238,120,388
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,449,121
</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>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="9">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="9" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>LIABILITIES AND STOCKHOLDER&#146;S EQUITY</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities:
</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">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,536,003
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124,742
</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">
    Amounts due to related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,671,919
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,986,636
</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">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,946,606
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,981,007
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,154,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,092,385
</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">
    Accrued warranty costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,421,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,491,459
</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">
    Convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000,000
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Liability for uncertain tax positions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,278,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,703,830
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL LIABILITIES
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,854,515
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,287,674
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholder&#146;s 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>
<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 align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common shares&#160;&#151; no par value: unlimited authorized
    Shares, 27,320,389&#160;shares issued and outstanding, as of
    December&#160;31, 2007; 35,744,563&#160;shares issued and
    outstanding, as of December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,454,214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294,707,048
</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">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,435,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,537,691
</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">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,604,572
</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">
    (12,992,818
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accumulated other comprehensive income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,980,542
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,909,526
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126,265,873
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    332,161,447
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    238,120,388
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,449,121
</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>
</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>
    F-36
</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">Financial
    Information of Parent Company<BR>
    Statements of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; 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="57%">&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="9%" 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="10%" 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="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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">
    Net revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77,427,512
</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">
    323,884,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    624,574,503
</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">
    Cost of revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,844,151
</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">
    313,554,507
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    624,628,119
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gross profit (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,583,361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,329,734
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (53,616
</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: 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: -10pt; margin-left: 10pt">
    Operating 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">
&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">
    Selling expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,510,642
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,382,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,455,132
</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">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,903,722
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,504,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,553,100
</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">
    Research and development expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    405,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    622,383
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,490,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,292,816
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,630,615
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,907,087
</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">
    (5,963,082
</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">
    (24,684,231
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other income (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">
&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">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,598,415
</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">
    (409,179
</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">
    (3,465,019
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    304,636
</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">
    316,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,557,683
</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">
    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">
    (8,186,500
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Debt conversion inducement expense
</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">
    (10,170,118
</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: 20pt">
    Foreign exchange gain (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (165,498
</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">
    2,582,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,789,748
</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">
    Other&#160;&#151; net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,529
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (140,972
</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="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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,431,335
</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">
    (3,614,802
</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">
    (32,971,937
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (125,606
</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">
    (145,141
</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">
    (10,102,981
</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">
    Equity in earnings of subsidiaries
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,127,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,550,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,686,672
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,429,864
</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">
    (209,676
</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">
    (9,388,246
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss per share&#160;&#151; basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</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">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.30
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shares used in computation&#160;&#151; basic and diluted
</DIV>
</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">
    27,283,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,566,503
</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>
</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>
    F-37
</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">Financial
    Information of Parent Company<BR>
    <BR>
    <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">Statements
    of Cash Flows</FONT></B>
</DIV>

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

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&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="3%">&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="3%">&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 -->
</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="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</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>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>
<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="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>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>$</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: -9pt; margin-left: 9pt">
    Operating activities:
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,429,864
</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">
    (209,676
</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">
    (9,388,246
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Adjustments to reconcile net loss to net cash used in operating
    activities:
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Depreciation and amortization
</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">
    757
</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: 27pt">
    Allowance for doubtful debts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,880,241
</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: 27pt">
    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">
    8,186,500
</TD>
<TD 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: 27pt">
    Amortization of discount on debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    722,053
</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">
    55,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    243,729
</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: 27pt">
    Equity in earnings of subsidiaries
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,127,077
</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">
    (3,550,266
</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">
    (33,686,672
</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: 27pt">
    Share-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,144,879
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,101,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,102,002
</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: 27pt">
    Debt conversion inducement expense
</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">
    10,170,118
</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: 9pt">
    Changes in operating assets and liabilities:
</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>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (355,654
</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">
    1,519,318
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,361,759
</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: 18pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (402,208
</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">
    (53,876,699
</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">
    8,430,376
</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: 18pt">
    Amounts due from related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,984,917
</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">
    (16,306,266
</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">
    (40,246,289
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Advances to suppliers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,469,789
</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">
    (1,742,545
</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">
    (6,074,708
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (316,269
</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">
    214,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    224,152
</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: 18pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,888,641
</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">
    2,026,184
</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">
    (2,411,261
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Advances from customers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,607,870
</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">
    1,198,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,483,914
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Amounts due to related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,786,340
</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">
    16,392,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,314,717
</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: 18pt">
    Accrued warranty costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    275,746
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,817,725
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,069,954
</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: 18pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    247,719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    597,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (100,189
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Liability for uncertain tax positions
</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">
    1,666,283
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,425,348
</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: 9pt">
    Deferred taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (959,255
</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">
    2,429,153
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net cash used in operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,606,238
</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">
    (40,865,959
</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">
    (25,462,491
</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: 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: 9pt">
    Investing activities:
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Investment in subsidiaries
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (46,800,000
</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">
    (20,460,000
</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">
    (93,600,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Purchase of equity investment
</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">
    (3,000,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Purchases of property, plant and equipment
</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">
    (22,174
</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: 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: 9pt">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (46,800,000
</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">
    (20,460,000
</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">
    (96,622,174
</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: 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: 9pt">
    Financing activities:
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Proceeds from 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">
    30,000,000
</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: 18pt">
    Repayment of short-term borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,300,000
</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">
    (30,000,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Proceeds from issuance of convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,650,000
</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">
    75,000,000
</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;
</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: 18pt">
    Issuance cost paid on convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (571,315
</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">
    (2,970,138
</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">
    (381,900
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Proceeds from issuance of common shares, net off issuance costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,323,942
</TD>
<TD 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">
    110,659,864
</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: 18pt">
    Proceeds from exercise of stock options
</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">
    151,823
</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">
    1,937,330
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net cash provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85,102,627
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,181,685
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,215,294
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Effect of exchange rate changes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,661
</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">
    (4,789,309
</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">
    747,321
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net increase in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,818,050
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,066,417
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,122,050
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash and cash equivalents at the beginning of the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,527,193
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,345,243
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,411,660
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash and cash equivalents at the end of the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,345,243
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,411,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,289,610
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Supplemental disclosure of cash flow information:
</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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Interest paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (876,362
</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">
    (58,814
</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">
    (2,601,581
</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: 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: 9pt">
    Income taxes paid
</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">
    (98,681
</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="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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Supplemental schedule of non-cash activities:
</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>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Issuance cost included in other payable
</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">
    (381,496
</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="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>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Conversion of convertible notes to ordinary shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,162,215
</TD>
<TD 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">
    82,103,963
</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>
</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>
    F-38
</DIV><!-- END PAGE WIDTH -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>h03379exv4w1.htm
<DESCRIPTION>EX-4.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT&nbsp;4.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>FORM OF<BR>DIRECTOR INDEMNITY AGREEMENT</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement is made as of 10 May&nbsp;2009 between:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt"><B>Canadian Solar Inc. </B>(<B><I>&#147;Corporation&#148;</I></B>),<BR>
a corporation existing under the laws of Canada,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt"><FONT style="font-family: Wingdings">&#108;</FONT> (<B><I>&#147;Director&#148;</I></B>),<BR>
a director of the Corporation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>WHEREAS</B>, as a condition of his agreeing to act or continue to act as a director of the Corporation,
the Director has requested the Corporation, and the Corporation has agreed, to indemnify the
Director, to the fullest extent permitted by law, against certain liabilities that the Director may
incur in connection with the Director&#146;s acting or continuing to act as a director of the
Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NOW THEREFORE</B>, for good and valuable consideration, the parties agree as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION&nbsp;1 &#151; INTERPRETATION</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.1</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Definitions</B></U><B>. </B>As used herein, the following terms shall have the following meanings:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>&#147;Agreement&#148; </I></B>means this Director Indemnity Agreement, as amended or supplemented from time to
time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>&#147;Corporation&#148; </I></B>has the meaning given to it in the preamble.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>&#147;Court&#148; </I></B>means the Ontario Superior Court of Justice.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>&#147;Director&#148; </I></B>has the meaning given to it in the preamble.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>&#147;including&#148; </I></B>means &#147;including without limitation&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>&#147;Policy&#148; </I></B>means a policy of insurance maintained by the Corporation that provides the
directors of the Corporation with coverage for losses from wrongful acts and/or ensures the
performance by the Corporation of its indemnification obligations under this Agreement and
similar agreements with other directors and/or officers of the Corporation.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.2</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Rules of Interpretation</B></U><B>. </B>The following rules of interpretation apply to this
Agreement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the singular includes the plural and conversely;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a gender includes all genders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where a word or phrase is defined, its other grammatical forms have a
corresponding meaning;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a reference to an Article or Section is to an article or section of this
Agreement;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 2 -

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the headings contained in this Agreement are for convenience of reference only
and do not modify or affect in any way the meaning or interpretation of this Agreement;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>time is of the essence.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.3</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Governing Law</B></U><B>.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed by, and construed and enforced in accordance with, the laws
of the Province of Ontario and the laws of Canada applicable therein without giving effect to any
choice of law or conflicting provision or rule that would cause the laws of any jurisdiction to be
applied other than the laws of the Province of Ontario and the laws of Canada applicable therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION&nbsp;2 &#151; INDEMNIFICATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U><B>Indemnity</B></U><B>. </B>The Corporation shall indemnify and save harmless the Director, to the
fullest extent permitted by law, against all liability, loss, harm, damage, cost or expense,
including legal fees and expenses and amounts paid to settle a claim or action or satisfy a
judgment or fine, reasonably incurred by the Director in respect of any threatened, pending,
ongoing or completed claim or civil, criminal, administrative, investigative or other action or
proceeding, formal or informal, made or commenced (whether by a third party or by the Corporation
or a third party on behalf of the Corporation) against the Director or in which the Director is or
was involved by reason of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that the Director is or was a director of the Corporation; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any action or inaction on the part of the Director while he is or was a
director of the Corporation.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.2</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Tax Gross-Up</B></U><B>. </B>If the Director is required by law to pay any tax on account of the
receipt by him of any amount under this Agreement, the Corporation shall increase the amount
payable to the Director so that the amount received by the Director, after the deduction of all
applicable taxes, is equal to the amount that the Director would have received under this agreement
had such tax not been payable. The Director agrees to take all reasonable steps to minimize the
amount of such taxes.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.3</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Limitation</B></U><B>.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Limitation. </I></B>The Corporation shall not obligated to indemnify the Director under Section&nbsp;2.1
unless:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Director acted honestly and in good faith with a view to the best interests
of the Corporation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of a criminal or administrative action or proceeding that is
enforced by a monetary penalty, the Director did not have reasonable grounds for
believing that his conduct was lawful.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 3 -

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>No Presumption. </I></B>The termination of any action or proceeding referred to in Section&nbsp;2.1 by
judgment, order, settlement or conviction, or upon a plea of <I>nolo contendere </I>or its equivalent,
shall not, in and of itself, create a presumption that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Director did not act honestly and in good faith with a view to the best
interests of the Corporation; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of a criminal or administrative action or proceeding that is
enforced by a monetary penalty, the Director had reasonable grounds for believing that
his conduct was lawful.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.4</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Payment</B></U><B>.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment of Indemnity Claim. </I></B>Within 10&nbsp;days after receipt by it of a claim for indemnification
under Section&nbsp;2.1, accompanied by reasonable evidence of the amount of the claim, the Corporation
shall pay or cause to be paid to the Director the amount of the claim, unless the claim is not
permitted by applicable law or requires Court approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Notice of Denial. </I></B>If the Corporation believes that payment of a claim for indemnification
under Section&nbsp;2.1 is not permitted by law or requires Court approval, the Corporation shall so
advise the Director in writing within the notice period referred to in Section&nbsp;2.3(1).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.5</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Determination of Right of Indemnification</B></U><B>. </B>If the Corporation contests the Director&#146;s
right to indemnification under Section&nbsp;2.1, the determination of the Director&#146;s right to
indemnification shall be made by the Court and:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the burden of proving that the Director did not meet the standards set out in
Section&nbsp;2.2 shall be on the Corporation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>neither the determination by the Corporation, nor failure of the Corporation to
determine, that the Director is not entitled to indemnification because he did not meet
the standards set out in Section&nbsp;2.2 shall create a presumption that the Director did
or did not meet such standards.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.6</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Scope; Change in Applicable Law</B></U><B>. </B>The Corporation agrees to indemnify the Director to
the fullest extent permitted by applicable law, notwithstanding that such indemnification is not
specifically authorized by the articles or by-laws of the Corporation or by statute. Any change in
applicable law, whether by statute or judicial decision, after the date of this Agreement that
narrows the right of the Corporation to indemnify its directors shall not decrease the scope of the
indemnity provided to the Director under this Agreement, unless otherwise required by such
applicable law. Any change in applicable law, whether by statute or judicial decision, after the
date of this Agreement that expands the right of the Corporation to indemnify its directors shall
increase the scope of the indemnity provided to the Director under this Agreement.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 4 -

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION&nbsp;3 &#151; ADVANCEMENT OF EXPENSES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.1</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Advances</B></U><B><I>. </I></B>The Corporation agrees to advance to the Director from time to time
sufficient moneys to enable the Director to pay all expenses reasonably incurred by him in
connection with the investigation, defence, settlement, judgment or appeal of, or his involvement
in, any claim, action or proceeding referred to in Section&nbsp;2.1. The Corporation agrees to make
such advances without regard to the Director&#146;s ability to repay such advances and without regard to
the Director&#146;s ultimate entitlement to indemnification under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.2</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Payment</B></U><B>. </B>Within 10&nbsp;days after receipt by it of a request for moneys under Section&nbsp;3.1,
accompanied by reasonable evidence of the amount of the expenses incurred by the Director, the
Corporation shall pay or cause to be paid to the Director the moneys requested.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.3</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Repayment</B></U><B>. </B>The Director agrees to repay to the Corporation the moneys advanced to him
by the Corporation pursuant to Section&nbsp;3.2 if and to the extent that it is ultimately determined by
final judicial decision from which there is no further right of appeal that the Director is not
entitled to be indemnified therefor by the Corporation. Any obligation of the Director to repay
the moneys advanced to him by the Corporation shall be unsecured and no interest shall be charged
thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION&nbsp;4 &#151; DERIVATIVE ACTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Corporation or a third party on behalf of the Corporation commences an action to
procure a judgment in favour of the Corporation to which the Director is made a party by reason of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that the Director is or was a director of the Corporation; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any action or inaction on the part of the Director while he is or was a
director of the Corporation,</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Corporation shall, at the Director&#146;s request, make application to the Court for approval of the
Court to indemnify the Director under Article&nbsp;2 and to advance moneys to the Director under Article
3.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION&nbsp;5 &#151; PROCEDURE</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.1</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Notice to Corporation</B></U><B>.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Giving Notice. </I></B>The Director shall give notice to the Corporation as soon as practicable, and
in any event not later than 10&nbsp;days, after the Director receives notice of any claim against the
Director or any action or proceeding involving the Director that may give rise to a claim for
indemnification from the Director under this Agreement. A copy of any documents which have been
served upon the Director shall accompany such notice or, where this is not feasible, be delivered
to the Corporation as soon as practicable thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Failure of Delay in Giving Notice. </I></B>The failure of the Director to give notice to the
Corporation in accordance with section 5.1(1) shall not relieve the Corporation of its obligations
to the Director under this Agreement unless, and then only to the extent that, the Corporation is
materially damaged or prejudiced as a result of such failure.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 5 -

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.2</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Notice to Insurers</B></U><B>.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;<B><I>Giving Notice. </I></B>The Corporation shall give notice to the insurers under the Policies as soon as
practicable, and in any event within the time limits specified under the Policies, after it
receives notice from the Director or otherwise becomes aware of any claim against the Director or
any action or proceeding involving the Director that may give rise to a claim for indemnification
from the Director under this Agreement and a claim for payment under the Policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;<B><I>Enforcement of Policies. </I></B>The Corporation shall take such action as is necessary or desirable
to cause the insurers under the Policies to pay, on behalf of the Director, in accordance with the
Policies, all amounts payable as a result of such claim, action or proceeding.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.3</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Control of Claim, Action or Proceeding</B></U><B>.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Assumption of Control by Corporation. </I></B>Subject to the rights of the insurers under the
Policies, the Corporation shall have the right, at its own expense, to assume control of any claim
against the Director or any action or proceeding involving the Director, including employing legal
counsel reasonably satisfactory to the Director, by giving notice to the Director of its intention
to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Cooperation. </I></B>If the Corporation exercises its right under Section&nbsp;5.3(1), the Director shall
cooperate with the Corporation and make available to it all information under his control that is
relevant to the claim, action or proceeding and the Corporation shall keep the Director informed on
an ongoing basis of the progress of the claim, action or proceeding. If the Corporation does not
exercise its right under Section&nbsp;5.3(1), the Corporation shall cooperate with the Director and make
available to him all information under its control that is relevant to the claim, action or
proceeding and the Director shall keep the Corporation informed on an ongoing basis of the progress
of the claim, action or proceeding.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Director Retaining Own Counsel. </I></B>If the Corporation exercises its right under Section&nbsp;5.3(1),
the Director may:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at his own expense, employ legal counsel of his choosing to participate in any
claim, action or proceeding in addition to legal counsel employed by the Corporation;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the expense of the Corporation, employ legal counsel of his own choosing to
participate in any claim, action or proceeding in addition to legal counsel employed by
the Corporation if:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the employment of such legal counsel has been approved by the
Corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Director has reasonably concluded that there may be a
conflict of interest between the Corporation and the Director in respect of the
claim, action or proceeding; or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 6 -

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Director has reasonably concluded that the Corporation has
not assumed control of, or is not diligently dealing with, the claim, action or
proceeding.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the Director employs legal counsel of his own choosing, the Corporation and its legal counsel
shall cooperate with the Director and his legal counsel in dealing with the claim, action or
proceeding, including making documents, witnesses and other information relating to the claim,
action or proceeding available to the Director and his legal counsel and entering into joint
defence and confidentiality agreements, as appropriate.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Settlement. </I></B>If the Corporation exercises its right under Section&nbsp;5.3(1),</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Director shall not enter into any settlement, or consent to the entry of
any judgment, with respect to the claim, action or proceeding without the prior written
consent of the Corporation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation shall not enter into any settlement, or consent to the entry of
any judgment, with respect to the claim, action or proceeding that would impose any
penalty, financial obligation or limitation on the Director, other than a monetary
obligation for which the Director is fully indemnified under this Agreement, without
the prior written consent of the Director,</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">which consent of the Director or the Corporation, as the case may be, shall not be unreasonably
withheld or delayed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION&nbsp;6 &#151; GENERAL</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.1</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Effectiveness of Agreement</B></U><B>. </B>This Agreement shall be effective on the date above
written and shall apply to all acts or omissions of the Director occurring on, before or after such
date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.2</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Notice</B></U><B>. </B>All notices or other communications required or permitted by this Agreement
shall be effective upon receipt and shall be in writing and shall be delivered personally or by
courier or sent by facsimile addressed as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of the Corporation:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Canadian Solar Inc.<BR>
675 Cochrane Drive<BR>
East Tower, 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor<BR>
Markham, ON Canada L3R 0B8</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Facsimile: &#043;1 905 530 2001</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with a copy to:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Canadian Solar Inc.<BR>
199 Lushan Road<BR>
Suzhou New District<BR>
Jiangsu, China 215129</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Facsimile: &#043;86 512 6690 8095</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 7 -

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of the Director:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-family: Wingdings">&#108;</FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Facsimile: &#043;<FONT style="font-family: Wingdings">&#108;</FONT></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.3</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Insurance</B></U><B>. </B>The Director shall be entitled to coverage under all Policies maintained by
the Corporation on the same basis as the other directors of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.4</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Continuation of Indemnity</B></U><B>. </B>The indemnification provided to the Director under this
Agreement shall continue after the Director ceases to serve as a director of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.5</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Amendment; Waiver</B></U><B>. </B>This Agreement may not be amended except by a written agreement
signed by the parties hereto. No waiver of any of the provisions of this Agreement shall
constitute a waiver of any other provisions of this Agreement or constitute a continuing waiver.
Any waiver of any of the provisions of this Agreement must be in writing and signed by the
Corporation or the Director, as applicable. A party&#146;s failure to enforce any of the provisions of
this Agreement shall not constitute a waiver of such provision or prevent the party from thereafter
enforcing such provision or any of the other provisions of the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.6</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Binding Effect</B></U><B>. </B>This Agreement shall be binding upon the Corporation and its
successors and assigns and enure to the benefit of the Director and his heirs, executors,
successors and personal representatives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.7</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Severability</B></U><B>. </B>The invalidity or unenforceability of any part of this Agreement shall
not affect the validity or enforceability of any other part of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.8</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Not Exhaustive</B></U><B>. </B>This Agreement shall not operate to abridge or exclude any other rights
to which the Director may be entitled in connection with his acting as a director of the
Corporation, at law or in equity, under the articles or by-laws of the Corporation or pursuant to
any vote of the shareholders or disinterested directors of the Corporation, or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.9</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Consent to Jurisdiction</B></U><B>. </B>All actions and proceedings arising in any manner out of or
from this Agreement or to interpret the provisions of this Agreement shall be brought only in the
courts of the Province of Ontario. Each of the Corporation and the Director irrevocably:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consents and submits to the jurisdiction of the courts of the Province of
Ontario for the purposes of any such action or proceeding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>waives any objection that it or he may have, now or hereafter, to having any
such action or proceeding take place in the courts of the Province of Ontario; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>waives any claim that the courts of the Province of Ontario are not a
convenient forum for any such action or proceeding.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 8 -

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing consents to jurisdiction shall not constitute general consents to service of process
in the Province of Ontario and shall not confer any rights on any person other than the parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.10</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Counterparts; Facsimile and Electronic Signatures</B></U><B>. </B>This Agreement may be executed in
one or more counterparts, each of which shall constitute an original. This Agreement may be
transmitted by facsimile or electronically, and it is the intent of the parties that the facsimile
or electronic copy of any signature printed by the receiving facsimile machine or computer printer
shall be considered an original signature and shall have the same force and effect as an original
signature.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The parties have executed this Agreement.

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>CANADIAN SOLAR INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Shawn Qu&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chairman, President and<BR>Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" nowrap valign="top">Signed in the presence of:<BR>
Arthur Chien</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">&nbsp;<BR>&nbsp;<BR>
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Signature of Witness</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
&nbsp;<BR>&nbsp;<BR><DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
<FONT style="font-family: Wingdings">&#108;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>3
<FILENAME>h03379exv4w2.htm
<DESCRIPTION>EX-4.2
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT&nbsp;4.2</B><BR>
&#091;Translation&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CSI04-09-P0018<BR>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 0pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Supplementary Agreement</B><BR>
To CSI-LDK071012 Contract
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">CSI04-09-P0018
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Party A: CSI Cells Co., Ltd<BR>
Address: No.199 Lushan Road, Suzhou New District, Jiangsu Province

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Party B:
Jiangxi LDK Solar Hi-Tech Co., Ltd.<BR>
Address: Xinyu Economic Development Zone, Jiangxi Province

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Considering the direct impact upon the industry by the current global financial crisis, Party
A and Party B, abiding by the principles of &#147;mutual understanding, cooperation to cope with&#148; and
after friendly negotiations, hereby enter into this supplementary agreement with respect to the
No.CSI-LDK071012 Wafer Supply Agreement and the relevant supplementary agreements already
signed and being performed:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party A confirms to continue to purchase silicon wafers from
Party B in the quantity of [****]*MW
for 2009 as set forth under the above contract. Party B agrees to supply goods to Party A in
the abovementioned quantity. Specific monthly supply plan is to be agreed by Party A and Party
B depending on their realities and annexed to this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>According to the current situation of solar market, both parties agree that the prices of the
silicon wafers of various specifications supplied by Party B to Party A in the first half of
2009 are temporarily as below:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD align="left" valign="top">125*125 monocrystalline wafer</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">RMB[****]*/pc (tax inclusive),</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD align="left" valign="top">agreed calculated power, 2.35W/pc</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD align="left" valign="top">156*156 multicrystalline wafer</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">RMB [****]*/pc (tax inclusive), or
USD [****]*/pc,</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD align="left" valign="top">agreed calculation power, 3.75W/pc</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party A and Party B agree that the unperformed portion of the LDK08335 Contract between both
parties will not be performed again and in principle, the remaining portion of the payment for
goods already made by Party A to Party B (USD [****]*) is used as the down payment for the
purchase by Party A of not less than [****]*MW silicon wafers in the first half of 2009. Party B
agrees to, in principle, deduct USD 1 per piece from payment for goods payable by Party A when
Party A purchases silicon wafers from Party B in the first half of 2009 until the above down
payment is deducted up. For RMB contract, if Party A has made full payment, Party B shall
refund corresponding USD amount; for USD contract, direct deduction shall be made. Specific
deduction method is to be agreed according to the type of goods delivered and delivery plan
between both parties.</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 style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Supplementary Agreement
To CSI-LDK071012 Contract has been omitted and filed separately with
the Securities and Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party A and Party B agree that the RMB [****]* down payment already made by Party A
under the CSI-LDK071012 Contract in 2008 will be converted into Party A&#146;s down payment for
2009. Party B will deduct it from the payment for goods payable by Party A in the last month
of the second half of 2009. Specific purchase price will be determined by both parties before
the end of June&nbsp;2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party A and Party B agree that the supply for 2010 under the CSI-LDK071012 Contract will be
merged with the CSIS-LDK2008-6-3 Contract between both parties. Both parties will further
negotiate about supply price and other contract amendments based on the market conditions and
endeavor to ensure that they are determined in 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon signing of this Agreement, in case of any discrepancy between this Agreement and other
prior supplementary agreements to CSI-LDK071012 Contract, this Agreement shall prevail. After
the signing of this Agreement, Party A will pay the RMB amount for goods previously owed to
Party B and the amount of silicon materials already paid, in a total of RMB
[****]*, before the end
of February&nbsp;2009.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Party A: CSI Cells Co., Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Party B: Jiangxi LDK Solar Hi-Tech Co., Ltd.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature: /s/
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature: /s/</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(with common seal of CSI Cells Co., Ltd)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(with common seal of Jiangxi LDK
Solar Hi-Tech Co., Ltd.)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">February&nbsp;14, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;14, 2009</TD>
</TR>
<!-- End Table Body -->
</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 style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Supplementary Agreement
To CSI-LDK071012 Contract has been omitted and filed separately with
the Securities and Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&#091;Translation&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Wafer Supply Agreement</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">CSI-LDK071012
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Party A: CSI Cells Co., Ltd<BR>
Address: <B>No.199 Lushan Road, Suzhou New District, Jiangsu Province</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Party B:
Jiangxi LDK Solar Hi-Tech Co., Ltd.<BR>
Address: <B>Xinyu High-tech Development Zone, Jiangxi Province</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the Contract Law of the People&#146;s Republic of China and other relevant laws
and regulations, Party A and Party B, on the basis of equality, free will and mutual benefit and
after adequate negotiations, hereby enter into this Agreement with respect to Party B&#146;s supplying
of multi-crystalline wafer products to Party A (Subject Matter), upon the terms and subject to the
conditions as set forth below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;1 Supply of Products
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Party B agrees to supply Grade A multi-crystalline wafer products in a specification of
156*156 &#177;0.5mm and in a thickness of 220<FONT style="font-family: Symbol">&#109;</FONT>m &#177;20<FONT style="font-family: Symbol">&#109;</FONT>m (hereinafter referred to &#147;Products&#148;) to Party A
pursuant to the provisions of this Agreement. Specific quantity is determined as per the relevant
provisions of this Agreement. (Note: In addition to the provisions of this Agreement, the product
quality standard, specification, technical parameters, etc. also include the Grade A product
standard provided by Party B to any third party and the Grade A product standard released by Party
B).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;2 Specification and Quality Standard
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Conduction type: P;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;resistivity: 0.5<FONT style="font-family: Symbol">&#87;</FONT>-3<FONT style="font-family: Symbol">&#87;</FONT>/cm; life time: <FONT style="font-family: Symbol">&#179;</FONT>2<FONT style="font-family: Symbol">&#109;</FONT>s;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Specification: 156*156 &#177;0.5mm square, 1*1 chamfer angle
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Oxygen content: <FONT style="font-family: Symbol">&#163;</FONT>1*10<SUP style="font-size: 85%; vertical-align: text-top">-18</SUP>/cm<SUP style="font-size: 85%; vertical-align: text-top">3</SUP>; carbon content: <FONT style="font-family: Symbol">&#163;</FONT>5*10<SUP style="font-size: 85%; vertical-align: text-top">-18</SUP>/cm<SUP style="font-size: 85%; vertical-align: text-top">3</SUP>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Thickness: 220 &#177;30<FONT style="font-family: Symbol">&#109;</FONT>m; TTV: <FONT style="font-family: Symbol">&#163;</FONT>50<FONT style="font-family: Symbol">&#109;</FONT>m
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">BOW: <FONT style="font-family: Symbol">&#163;</FONT>30<FONT style="font-family: Symbol">&#109;</FONT>m; saw mark: <FONT style="font-family: Symbol">&#163;</FONT>10<FONT style="font-family: Symbol">&#109;</FONT>m
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Broker corner: length<FONT style="font-family: Symbol">&#163;</FONT>1mm; depth<FONT style="font-family: Symbol">&#163;</FONT>1mm; not more than two per piece
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 12pt"></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="left" valign="top">Wafer Supply
Agreement CSI-LDK071012
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Page 1 of 5</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;3 Supply Quantity and Price
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Time/</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">unit price</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Quantity (Million pieces\MW)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Q1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Q2
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Q3
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Q4</TD>
</TR>

<TR valign="bottom" style="background: #cceeff"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3.38Mpcs\12.5MW
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3.38Mpcs\12.5MW
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3.38Mpcs\12.5MW
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3.38Mpcs\12.5MW</TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>



<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">Price (RMB&#165;/pc)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2009</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
</TR>



<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">Price (RMB&#165;/pc)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
</TR>


<TR valign="bottom" style="background: #cceeff"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>





<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">Price (RMB&#165;/pc)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;4 Down Payment
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party A shall make an annual down payment to Party B at 5% of the total contract amount of
next year. Party B agrees that for Party A&#146;s down payment for 2008, 50% is to be paid before
December&nbsp;31, 2007 and 50% is to be paid before the end of March&nbsp;2008. Later on, down payment
shall be fully paid before the end of December of each year. The down payments for three years
are: 2008: RMB [****]*; 2009: RMB [****]*; 2010: RMB [****]*.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the term of this Agreement, annual down payment is automatically transferred to next
year per annum. Party A shall make up the deficit in the payable year. Annual down payment
will offset the payment for goods in the last delivery month prior to the expiry of this
Agreement. Within the term of this Agreement, if Party A breaches this Agreement by means of
stopping to demand the goods, down payment will not be refunded; if Party B breaches this
Agreement by means of stopping to supply the goods, Party B shall compensate Party A in a
amount twice the down payment.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the term of this Agreement, the pricing for the above respective years is based on the
USD/RMB exchange rate of not lower than 6.89. If the USD/RMB exchange
rate is lower than 6.89 and the
duration continues for more than one month, Party A and Party B shall re-negotiate about
product price and reference exchange rate.</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 style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Wafer Supply Agreement
has been omitted and filed separately with the Securities and
Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 12pt"></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="left" valign="top">Wafer Supply
Agreement CSI-LDK071012
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Page 2 of 5</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party B may provide the silicon wafers in a thickness of less
than 220&#181;m. If Party A accepts
the change of ordering specification, Party B agrees to grant an appropriate downward
adjustment on the basis of the price specified herein.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;5 Supply and Payment Procedures
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party B shall deliver the supply list for next month to Party A between the 15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
day and the 20<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, indicating quantity of delivery, quality,
specifications and delivery period. Within one week after receiving Party B&#146;s notice, Party A
shall prepay to Party B the full amount of goods to be supplied next month.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within 3 working days after receiving the supply list from Party B, Party A shall give a
written confirmation. The order finally determined by both parties in writing shall serve as
the final basis for product supply of the current period. Upon confirmation, neither party may
change it. Otherwise, the party who makes the changes shall bear the corresponding defaulting
liability.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Party B delivers goods across quarters, Party A shall, in addition to the right to make
settlement at the price of the quarter of actual delivery, be entitled to impose a fine on
Party B at 1% of the amount of delayed goods. If Party A fails to demand goods on time, Party
B shall, in addition to the right to collect payment at the original price, be entitled to
impose a fine on Party A at 1% of the amount of delayed goods.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Method of supply: goods are delivered to the place designated by Party A (limited to: Suzhou,
Changshu, Shanghai, Xinyu).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;6 Acceptance and Objection
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Party A shall perform acceptance inspections on the day when it receives products. If Party A
has any objection to product quality, it shall notify Party B of its objection within 90&nbsp;days of
receiving products; if no objection is raised within such 90-day period, Party A shall be deemed
having no objection, unless the quality defects indeed cannot be identified within this period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 12pt"></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="left" valign="top">Wafer Supply
Agreement CSI-LDK071012
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Page 3 of 5</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;7 Party A&#146;s Supply Obligation
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Party
A agrees to supply [****]* tons of appropriate silicon materials to Party B at a
preferential market price within 2&nbsp;years, i.e. 2008: [****]* tons;
2009: [****]* tons. Party B shall make
100% payment for goods after it receives and signs the sales contract from Party A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;8 Defaulting Liability
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If either party breaches the provisions of this Agreement, it shall bear the corresponding
defaulting liability. If the quality of products supplied by Party B is not as agreed by both
parties, Party A is entitled to return the products within 90&nbsp;days and Party B shall make
replacements immediately upon receipt of returned products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;8 Both parties agree that Party A is entitled to demand the refund of down payment if:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party B fails to supply goods complying with quality requirements on time;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party B suspends production for a long period of time (more than 3&nbsp;months), becomes bankrupt
or has any of other material incidents;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>there are material changes to Party B&#146;s equity structure or the equity structure of Party B&#146;s
principal shareholder, causing this Agreement unable to be performed (note: Party B bears the
obligation to serve notices);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party B fails to perform its obligations pursuant to the provisions of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within 30&nbsp;days after Party A gives a written request to Party B demanding the refund of down
payment, Party B shall refund the down payment made by Party A. Only upon confirmation by both
parties will the obligations hereunder be deemed to terminate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;9 Applicable Law and Dispute Resolution
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The formation, validity, interpretation and performance of this Agreement and dispute
resolution shall be governed by the laws of the mainland of the People&#146;s Republic of China
(note: mainland excludes Hong Kong, Macao and Taiwan).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any dispute arising out of or from the performance of or in connection with this Agreement
shall be resolved by both parties by amicable consultation. In the event that no resolution
can be reached by consultation, either party may refer such dispute to the China International
Economic and Trade Arbitration Commission Shanghai Sub-commission (&#147;CIETAC&#148;) for arbitration
in accordance with the CIETAC&#146;s arbitration rules and the arbitration rules at the time of
applying for arbitration. The arbitral award shall be final and binding upon both parties.</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 style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    This portion of the Wafer Supply Agreement has been omitted and
filed separately with the Securities and Exchange Commission,
pursuant to Rule&nbsp;24b-2.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 12pt"></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="left" valign="top">Wafer Supply
Agreement CSI-LDK071012
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Page 4 of 5</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;10 Effectiveness of Agreement
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective after it is signed by the legal representatives or
authorized representatives of both parties and Party A&#146;s first down payment is deposited to the
account designated by Party B.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Article&nbsp;11 Miscellaneous
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is executed in four counterparts, with each party hereto retaining two
counterparts (of which one is original and one is copy). The four counterparts shall have the same
legal effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Party A: CSI Cells Co., Ltd.<BR>
Legal representative or authorized representative:</B><BR>
/s/ Shawn (Xiaohua) Qu<BR>
(with common seal of CSI Cells Co., Ltd.)

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">October&nbsp;17,
2007

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 16pt"><B>Party
B: Jiangxi LDK Solar Hi-Tech Co., Ltd.<BR>
Legal representative or authorized representative:</B><BR>
/s/ Xiaofeng Peng<BR>
(with common seal of Jiangxi LDK Solar Hi-tech Co., Ltd.)

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">October&nbsp;17,
2007

</DIV>




<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 12pt"></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="left" valign="top">Wafer Supply
Agreement CSI-LDK071012
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Page 5 of 5</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>4
<FILENAME>h03379exv4w3.htm
<DESCRIPTION>EX-4.3
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreement reference number: CSI07-09-P0066
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT&nbsp;4.3</B><BR>
&#091;Translation&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Supplementary Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 50%">Buyer Agreement No.: CSI07-09-P0066<BR>
Seller Agreement No.: SSC00231/00232

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Party A (&#147;Seller&#148;): Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Party B (&#147;Buyer&#148; in Silicon Wafer Supply Contract): CSI Cells Co., Ltd.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Party C (&#147;Buyer&#148; in the Original Contracts): Changshu CSI Advanced Solar Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Party D (&#147;Buyer&#148; in Polysilicon Supply Contract): CSI Central Solar Power Co., Ltd.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;20, 2008, Party A and CSI Cells Co., Ltd. (hereinafter referred to as &#147;Party B&#148;)
signed the Solar Polysilicon Supply Contract and the Solar Silicon Wafer Supply Contract (notes:
for these two contracts, the seller contract numbers are &#147;SSC00232&#148; and &#147;SSC00231&#148;, respectively;
the buyer contract numbers are &#147;CSI-ZN80818-A&#148; and &#147;CSI-ZN80818-B&#148;, respectively). The
aforementioned two contracts are hereinafter collectively referred to as &#147;Original Contracts&#148;. In
addition, CSI Central Solar Power Co., Ltd. (hereinafter referred to as &#147;Party D&#148;) and Changshu CSI
Advanced Solar Inc. (hereinafter referred to as &#147;Party C&#148;) become a part of the &#147;Buyer&#148; in the
Solar Polysilicon Supply Contract and the Solar Silicon Wafer Supply Contract and together with
Party B, constitute the &#147;Buyer&#148; in these two contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By adhering to the principles of &#147;mutual understanding, mutual support and cooperation to cope
with&#148; and the attitude of cooperation and after friendly negotiations, the Buyer and the Seller
hereby enter into this supplementary agreement with respect to the previously signed Solar
Polysilicon Supply Contract and Solar Silicon Wafer Supply Contract, upon the terms and subject to
the conditions as set forth below.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 1 of 6<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreement reference number: CSI07-09-P0066
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Party A agrees: Party B and Party C withdraw from the &#147;Buyer&#148; in the Solar Polysilicon
Supply Contract and Party D solely enjoys and undertakes the rights and obligations for the &#147;Buyer&#148;
in such Solar Polysilicon Supply Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Party A agrees: Party C and Party D withdraw from the &#147;Buyer&#148; in the Solar Silicon Wafer
Supply Contract and Party B solely enjoys and undertakes the rights and obligations for the &#147;Buyer&#148;
in such Solar Silicon Wafer Supply Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The
parties hereto unanimously agree that as from the signing date of this Agreement, Articles 2.8,
3.2.1, 8.1.1 and 8.2.1 of the Solar Polysilicon Supply Contract and Solar Silicon Wafer Supply
Contract previously signed by the Buyer and the Seller are terminated, i.e. these articles will
have no legal binding effect on the parties hereto from the signing date of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the Buyer and the Seller unanimously agree to amend Article&nbsp;2.10 of the Solar Polysilicon
Supply Contract and Solar Silicon Wafer Supply Contract as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall not be directly responsible for the products transferred by the Buyer to
others with or without compensation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;3.1 is amended as: The Products to be supplied under this Contract
include but not limited to the specifications as stipulated in
Exhibit A to this Contract. The specific specifications and standards
are subject to the written documents jointly signed by the
Parties.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;8.1.3 is amended as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Buyer materially breaches the contract and the Seller terminates the contract, the
Buyer shall undertake the following defaulting liability to the Seller:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Pay the liquidated damages for overdue payment pursuant to Article&nbsp;8.1.2 (until the date
of termination of the contract); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Pay to the Seller the liquidated damages at seven point five percents (7.5%) of the unpaid
amount of goods under the contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;From the second quarter of 2009, the polysilicon products sold by Party A to Party D shall
comply with the &#147;Grade 3&#148; standard in the National Standard of Solar Polysilicon of the People&#146;s
Republic of China (draft for examination). Otherwise, Party D is entitled to request Party A to
replace goods, etc.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 2 of 6<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreement reference number: CSI07-09-P0066
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Party A and Party D agree to change the polysilicon supply quantity for 2009 in &#147;product
name, product supply quantity, product delivery progress, product payment progress and product
price schedule&#148; under Annex &#91;B&#93; to the Solar Polysilicon Supply Contract as follows: during the
eight-month period from May to December&nbsp;2009, supply about
[****]* tons of polysilicon every month,
totaling [****]* tons (including the quantity converted from the silicon wafers purchased by Party B
from Party A); also change the tax-inclusive unit price to RMB [****]*/kg. Party A undertakes: the
price of the polysilicon sold by it to Party D is the most preferential polysilicon price offered
by it to any third party under the same conditions. If Party A and Party D have any dispute about
the price during actual performance, they agree to comply with the pricing method under Article&nbsp;8
of this Agreement below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Party
A and Party B agree to amend the price provisions in Annex &#91;C&#93; to the Solar Silicon
Wafer Supply Contract as follows: the silicon wafer purchase price for the period from 2010 to 2015
agreed by the Buyer and the Seller under the Solar Silicon Wafer Supply Contract will be determined
by Party A and Party B through friendly negotiations, by referring to the then current market price
and following the principle of &#147;not higher than the price specified in Original Contracts and
better than market price&#148;. If both parties have any dispute about the price during actual
performance, they agree to comply with the pricing method under Article&nbsp;8 of this Agreement below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Party B will perform its purchase obligation pursuant to the silicon wafer purchase
quantity under Annex &#91;C&#93; to the Solar Silicon Wafer Supply Contract. Once Party B&#146;s purchase quantity
for then current period is insufficient, Party D may continue to purchase the corresponding
quantity of polysilicon from Party A to make up the deficit. In the event that the quantity of
silicon wafers actually purchased by Party B from Party A (including the quantity of silicon wafers
converted from the polysilicon quantity purchased by Party D from Party A when Party B&#146;s purchase
quantity for then current period is insufficient) is less than the silicon purchase quantity as set
forth under Annex &#91;C&#93; to the Solar Silicon Wafer Supply Contract, but accounts for over 40% of the
purchase quantity announced by Party B for that year, Party B shall not be deemed breaching the
contract. In the fourth quarter of 2015, Party A, Party B and Party D shall negotiate to determine
the continued purchase quantity and corresponding price of polysilicon products or silicon wafers
or combination thereof for 2016 and thereafter; Party A, Party B and Party D shall perform the
purchase quantity and price then agreed.
</DIV>


<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Supplementary Agreement
has been omitted and filed separately with the Securities and
Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 3 of 6<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreement reference number: CSI07-09-P0066
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;During the performance by the Buyer and the Seller of the Solar Polysilicon Supply Contract
and Solar Silicon Wafer Supply Contract, if the difference between buyer&#146;s purchase price (or
seller&#146;s selling price of current period (specific month or quarter of corresponding year)
specified in the contract and the average market price in current period exceeds five percent
(inclusive)&nbsp;of market price of current period (specific month or quarter of corresponding year),
the Buyer and the Seller shall agree upon the purchase price of next month before the
25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of current month and adjust the Buyer&#146;s purchase price of next month on a
pro-rated basis so as to ensure that the price of the contractual products purchased by the Buyer
from Party A is the most preferential under the same conditions. In case the Buyer and the Seller
cannot agree upon the price, then the price of contractual products shall be determined as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;the average purchase price of the top five purchasers in terms of sales quantity within
thirty days before the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of current month when the Seller sells products at the
&#147;spot market price&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;the average supply price of the top five suppliers in terms of purchase quantity within
thirty days before the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of current month when the Buyer purchases products at
the &#147;spot market price&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;If both parties cannot agree upon the above two prices, the arithmetic mean of these two
prices is the final price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;The Buyer and the Seller agree to amend the payment terms about polysilicon (Articles 2.8
and 3.2) in the Solar Polysilicon Supply Contract as follows: for each payment for 2009 under this
Supplementary Agreement, the Buyer shall make 50% of this payment within the payment term specified
in the contract in cash (including bank transfer, T/T, etc). (Notes:
Party &#91;C&#93;, as the former Buyer
in the Solar Polysilicon Supply Contract already prepaid RMB [****]* to Party A in October and
November&nbsp;2008. The Seller agrees that during the period from May to December&nbsp;2009, the payment for
current batch of goods payable by the Buyer is offset on the basis of the polysilicon quantity
purchased by Party D and the price of [****]* per kilogram of polysilicon until the advance payment of
RMB [****]* already made by the Buyer is fully offset. In addition, the Buyer shall issue a
domestic commercial bank bill meeting the requirement and having an acceptance period of 90&nbsp;days to
pay the balance of this payment for goods (i.e. 50% of this payment for goods).
</DIV>


<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Supplementary Agreement
has been omitted and filed separately with the Securities and
Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 4 of 6<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreement reference number: CSI07-09-P0066
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;Both parties agree to re-negotiate about amount of advance payment, time of payment, etc
in Article&nbsp;3.5.1 of the Solar Polysilicon Supply Contract and Solar Silicon Wafer Supply Contract
later.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;In Notices article of the Original Contracts, the recipient of the notices sent to Party A
is changed to Ma Ping (Vice President); the recipient of notices sent to Party B is changed to Wang
Xiaohu (Vice President). In order to increase efficiency and reduce commercial costs, notices
between both parties may be sent via email. The email addresses of both parties are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Party A:scottma@gcl-silicon.com;amyqiu@gcl-silicon.com;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Party B:xiaohu.wang@csisolar.com;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">amy.wan@csisolar.com; weiyan.liu@csisolar.com.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;This Agreement only contains amendments to the parties and relevant contents of the
Original Contracts (i.e. Solar Polysilicon Supply Contract and Solar Silicon Wafer Supply
Contract). The contents not amended under the Original Contracts shall still have a legal binding
force.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;The parties hereto undertake: this Agreement contains the newly agreed amendments to the
Original Contracts previously signed with Party A. In case of any discrepancy between this
Agreement and the Original Contracts, this Agreement shall prevail. Prior to the expiry of the
product supply term as set forth under the Original Contracts, the parties hereto shall perform
their obligations and responsibilities in full accordance with the provisions of the Original
Contracts and this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where the Buyer&#146;s purchase obligations or the Seller&#146;s supply obligations under the Original
Contracts and this Agreement finally cannot be fully performed (note: except caused by an event of
force majeure), the non-defaulting party reserves its right to pursue the defaulting responsibility
of defaulting party as it may have at law with respect to defaulting party&#146;s default occurring
prior to the effectiveness of this Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 5 of 6<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreement reference number: CSI07-09-P0066
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;The validity, interpretation, etc of this Agreement shall be governed by the laws of the
People&#146;s Republic of China. Any dispute arising in connection with the interpretation and
performance of this Agreement shall be resolved by the Buyer and the Seller by friendly
consultation. In case no resolution can be reached by consultation,
the Buyer and the Seller unanimously agree
that any such dispute is submitted to Shanghai Arbitration Commission for arbitration in accordance
with its arbitration rules. The arbitral award shall be final and legally binding upon both
parties. The arbitration costs shall be borne by the losing party. If this Agreement cannot be
performed normally and suspended during dispute resolution, both parties agree to postpone the
performance term of this Agreement accordingly and resume the performance of this Agreement after
both parties resolve the dispute.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;This Agreement shall become effective after it is signed and sealed by the representatives
of the parties hereto. This Agreement is executed in eight (8)&nbsp;copies, with each of Party A, Party
B, Party C and Party D retaining two (2)&nbsp;copies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Signature page follows; no text below)
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 16pt">Seller (Party A): Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd. (seal)<BR>
Representative:&nbsp;<U>&nbsp;/s/ Wenwu Jiang&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;(signature)<BR>
(with corporate seal of Jiangsu Zhongneng Polysilicon Technology
Development Co., Ltd.)<BR>
Date:&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;, 2009

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 16pt">Buyer (Party B): CSI Cells Co., Ltd. (seal)<BR>
Representative: <U>&nbsp;/s/ Xiaohu Wang&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (signature)<BR>
(with corporate seal of CSI Cells Co., Ltd.)<BR>
Date: May&nbsp;22, 2009

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 16pt">Party C: Changshu CSI Advanced Solar Inc. (seal)<BR>
Representative:&nbsp;<U>&nbsp;/s/ Xiaohu Wang&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;(signature)<BR>
(with corporate seal of Changshu CSI Advanced Solar Inc.)<BR>
Date:&nbsp;May 22, 2009
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 16pt">Buyer (Party D): CSI Central Solar Power Co., Ltd. (seal)<BR>
Representative:&nbsp;<U>&nbsp;/s/ Liuliu Shan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;(signature)<BR>
(with corporate seal of CSI Central Solar Power Co., Ltd.)<BR>
Date:&nbsp;May 22, 2009

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 6 of 6<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&#091;Translation&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Solar Polysilicon Supply Contract</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Between
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">AND
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CSI Cells Co., Ltd.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Seller Contract Number: &#091;SSC00232&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Buyer Contract Number: CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">August&nbsp;20, 2008
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 1 of
20<!-- /Folio --></DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Polysilicon Supply Contract</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Solar Polysilicon Supply Contract (hereafter referred to as &#147;this Contract&#148;) is entered
into by the parties below in &#091;Suzhou&#093;, China on August&nbsp;20, 2008:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd. (in its own name and representing
the relevant affiliates already established and to be established by it inside and outside of China
and confirmed by the Buyer in writing to participate in this Contract), a company incorporated in
the People&#146;s Republic of China, having its registered address at No.66 Yangshan Road, Xuzhou
Economic Development Zone, Jiangsu Province, P.R. China (hereinafter referred to as the &#147;Seller&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AND
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Cells Co., Ltd., a company incorporated in the People&#146;s Republic of China, having its
registered address at No.199 Lushan Road, Suzhou New District, Jiangsu Province, P.R. China
(hereinafter referred to as the &#147;Buyer&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Buyer and the Seller are hereinafter collectively referred to as the &#147;Parties&#148; and individually
as a &#147;Party&#148;.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Preamble</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">WHEREAS, the Buyer intends to purchase certain quantities of polysilicon from the Seller, and the
Seller intends to be a supplier and to sell certain quantities of polysilicon to the Buyer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements herein contained, the Parties reach the following:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>1. Definitions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As used herein, unless otherwise provided in the clauses of this Contract or defined by the
context, the following terms shall have the following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.1 &#147;This Contract&#148; means this Solar Polysilicon Supply Contract, including the Preamble and
the terms of its body, all exhibits as well as any amendment, modification and supplement to this
Contract as may be made by the Parties from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.2 &#147;Contract Term&#148; means the period from the Effective Date of this Contract to December&nbsp;31, 2009,
which is the effective Contract Term. During the Contract Term, this Contract shall remain in full
force and effect before the Parties have performed all their respective obligations hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.3 &#147;Business Day&#148; means any day on which companies in the PRC are generally open for business,
including a Saturday or Sunday which the PRC government temporarily declares to be a working day
(&#147;Working Rest Day&#148;), but excluding a statutory festival or holiday, or a Saturday or Sunday other
than the Working Rest Day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.4 &#147;Effective Date&#148; means the date the Parties duly sign and seal this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.5 &#147;Contract Year&#148; means any calendar year during the Contract Term.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 2 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.6 &#147;Affiliate&#148; means, with respect to any Party, any company directly or indirectly controlling,
or controlled by or under common control with such Party. The term &#147;control&#148; as used herein means
the direct or indirect ownership of (i)&nbsp;fifty percent (50%) or more of the voting shares or equity
of such company; or (ii)&nbsp;fifty percent (50%) or more of the registered capital of such company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.7 &#147;Loss&#148; means any and all damages, fines, fees, taxes, penalties, deficits and other losses and
expenses (including lost profits or diminution in value), including interest, reasonable expenses
of investigation, litigation costs, reasonable fees and expenses of attorneys, accountants and
other experts or other expenses of any litigation or of any claim, default or assessment (such fees
and expenses to include all fees and expenses, especially including all fees and expenses of
attorneys, incurred in connection with (i)&nbsp;the investigation or defense of any third party claims,
(ii)&nbsp;asserting or disputing any rights under this Contract against any Party hereto or otherwise,
and (iii)&nbsp;settling any action or proceeding or threatened action or proceeding).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.8 &#147;Intellectual Property&#148; means all the rights from any of the following items: invention,
discovery, improvement, utility model, appearance design, copyrightable work, industrial design,
algorithm, data structure, trade secrets or know-how, product price, specification, confidential
information, or any idea having commercial value. Intellectual Property shall also include any
trademark, trade dress, trade name, domain name, or other marks that serve to identify and
distinguish goods or services as coming from, or falling under the control of a single source.
Intellectual Property shall include all rights of whatsoever nature in computer software and data,
all intangible rights or privileges of a nature similar to any of the foregoing in every case in
any part of the world, and all rights in any applications and granted registrations for any of the
foregoing rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.9 &#147;China&#148; or &#147;PRC&#148; means the People&#146;s Republic of China, but in this Contract, excluding Hong
Kong, Macao and Taiwan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.10 &#147;Renminbi&#148; or &#147;RMB&#148; means the lawful currency of China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.11 &#147;Law&#148; means the laws, regulations, rules, and other legislative, executive or judicial
notices, orders, decisions or pronouncements binding on either Party, or in relation to the subject
matter of this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.12 &#147;Product&#148; or &#147;this Product&#148; means the polysilicon supplied by the Seller to the Buyer
according to the product specification in Exhibit&nbsp;A to this Contract. The Seller agrees to sell and
deliver and the Buyer agrees to buy and acquire the Products in accordance with this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.13 &#147;Price&#148; has the meaning as defined in Article&nbsp;3.2.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.14 &#147;Payment for Goods&#148; means the total amount of the price of the Products and the value-added
tax borne by the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.15 &#147;Total Contract Price&#148; means the total Payment for Goods payable by the Buyer under this
Contract, which is calculated on the basis of the volume specified in Exhibit&nbsp;B hereto or the
actual supply volume adjusted by the Seller after adjustments are made according to this Contract
as well as the corresponding product price and value-added tax.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>2. General Provisions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.1. The exhibits attached hereto constitute an integral part of this Contract and have the same
effect as this Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 3 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.2. Headings preceding the text, articles and clauses hereof are inserted solely for convenience
of reference and shall not be construed to affect the meaning, construction or validity of this
Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.3. During the Contract Term, the Buyer shall purchase and accept the Products under this
Contract, and pay for the corresponding Payments for Goods, pursuant to the terms and conditions
set forth in this Contract and the exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.4. During the Contract Term, the Seller shall sell and deliver the Products under this Contract, pursuant to the terms and conditions set forth in
this Contract and the exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.5 Each Party and its Affiliate confirmed by the other Party in writing to participate in this
Contract shall not withdraw from this Contract without the prior written consent of the other
Party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.6 With respect to the performance of a Party&#146;s obligations hereunder, such Party and its
Affiliate participating in this Contract shall undertake the irrevocable, joint and several
responsibility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.7 The relevant Affiliate of each Party participating in this Contract shall sign the letter of
undertaking in the format as specified in Exhibit&nbsp;C.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.8 This Contract is a &#147;take or pay contract&#148;. The Buyer understands and acknowledges that: based
on the reliance on the Buyer and the judgment of the volume of the Products required by the Buyer,
the Seller has invested heavily to expand its productive capacity so as to meet the Buyer&#146;s product
demands. In the event that the Buyer fails to perform its contracted volume of Products to purchase
(including but not limiting to: fails to order contracted volume and fails to pay the account
payable) in a given year within any agreed year, the Seller is entitled to give payment notice to
the Buyer at their full contract price regardless of the difference between the ordered and the
contracted volume and the Buyer is liable to pay such amount specified on that payment notice in full
within thirty (30)&nbsp;days upon the issuance of such payment notice. The Buyer specifically acknowledges and accepts that
it will be liable for the full purchase price of volume differed between the ordered and the
contracted volume.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.9 The Parties understand and specifically agree that the Seller will provide the Products only
pursuant to the provisions of Exhibit&nbsp;A hereto; the suitability for a particular purpose as well as
the issues regarding the processing, use and application of the Products shall be solely decided by
and the responsibility of the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.10 The Parties understand and specifically agree that without the prior written consent of the
Seller, the Buyer shall not transfer the Products purchased from the Seller hereunder to others
with or without compensation, the Products shall be merely used for the Buyer&#146;s production and the
Seller will not be responsible for the Products transferred by the Buyer to others with or without
compensation, unless the Buyer entrusts processing with a third party.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>3. Supply of Products</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.1 Products</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Products to be supplied under this Contract shall meet the specifications as stipulated in
Exhibit&nbsp;A to this Contract. The specifications set forth in Exhibit&nbsp;A may be amended only in
writing upon the agreement of the Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 4 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.2 Price</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.2.1 Within the Contract Term, the tax-included unit price of the Products in Exhibit&nbsp;B is a fixed
price. The Parties hereto unanimously agree that upon the execution of this Contract, neither Party
may request for the adjustment of the said price by the other Party for any grounds, unless the
statutory rate of value-added tax is adjusted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.2.2 The tax-included unit price set forth in Exhibit&nbsp;B hereto as well as the Payment for Goods
payable include value-added tax. If the rate of value-added tax is adjusted, the tax-included
unit price set forth in Exhibit&nbsp;B hereto as well as the Payment for Goods payable shall be adjusted
accordingly as of the date when the new tax rate becomes effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.3 Volume</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.3.1 The volume of the Products to be purchased by the Buyer from the Seller and to be supplied by
the Seller to the Buyer within the Contract Term shall be subject to Exhibit&nbsp;B (the total volume
under this Contract is 510 tons). The Buyer and the Seller are entitled to adjust (including increase and reduce) the agreed next month&#146;s supply volume set forth under Exhibit&nbsp;B within the range of 20%
pursuant to the provisions of Article&nbsp;3.3.2, which shall not constitute the default concerning
delivery or acceptance under this Contract, but the supply and acceptance volume in the adjustment
month shall not be less than 80% of the volume for the current month set forth in Exhibit&nbsp;B. As
regards the shorted (or increased) delivery in the adjustment month, the Parties shall increase or
reduce volume accordingly to achieve the scheduled volume within 90&nbsp;days from the 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>
day of next month. Within each supply year, the number of such volume adjustments shall not be more
than three. In addition, the Parties hereto unanimously agree that upon the execution of this
Contract, neither Party may request for the adjustment of the said volume by the other Party for
any grounds, unless otherwise agreed in writing by the Parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.3.2 The Parties unanimously agree that adjustment of monthly volume shall be made according to
the following method:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;If the Seller (or the Buyer) needs to reduce the monthly volume of the Products in Exhibit&nbsp;B,
it shall, before the 15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, notify the other Party in writing of next
month&#146;s volume. Adjusted product volume and Payment for Goods shall be subject to the &#147;Monthly
Adjustment Notice of Product Volume&#148; issued by the Seller. If the monthly volume adjusted by the
Seller conforms to the provisions of this Contract, the Buyer shall accept such adjustment
unconditionally.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;If the Seller (or the Buyer) needs to increase the monthly volume of the Products in Exhibit&nbsp;B,
it shall, before the 10<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, notify the other Party in writing of next
month&#146;s supply volume. Adjusted product volume and Payment for Goods shall be subject to the
&#147;Monthly Adjustment Notice of Product Volume&#148; issued by the Seller. If the monthly volume adjusted
by the Seller conforms to the provisions of this Contract, the Buyer shall accept such adjustment
unconditionally. For the Payment for Goods corresponding to the increased volume of the Products
subsequent upon the adjustment put forth by the Seller, if the Buyer has any difficulty in making
payment, the Seller shall give the Buyer a 30-day payment grace period (during which the Buyer is
not required to bear the obligation on overdue payment, unless the Buyer fails to make the original
Payment for Goods in full). The Seller is entitled to refuse to deliver the Products to the Buyer
before it receives the full Payment for Goods with respect to such increased volume.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 5 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.4 Quality</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.4.1 The Seller shall only guarantee that the delivered Products will comply with the
specification as set forth in Exhibit&nbsp;A. If the Products do not comply with the specification set
forth in Exhibit&nbsp;A, the Parties shall proceed in accordance with Article&nbsp;3.6.5. If any claim or
litigation (including, but not limited to, default and product infringement) arisen by reason of
any defect of the Products after delivery to Party B is alleged, the Buyer is entitled to opt for
the following remedy and the Seller&#146;s obligation is specifically limited to: (i)&nbsp;replace
nonconforming Products; or (ii)&nbsp;refund the purchase price of such nonconforming Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.4.2 In case any dispute regarding product quality arises between the Parties, any Party or the
Parties may entrust a legal inspection institution to perform appraisal and the appraisal report
issued by such appraisal institution shall bind upon the Parties. The appraisal expenses shall be
prepaid by the entrusting Party and shall be borne according to the methods below based on the
appraisal report:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;If the Products have any quality problem according to appraisal report, the appraisal expenses
shall be borne by the Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;If the Products have no quality problem according to appraisal report, the appraisal expenses
shall be borne by the Buyer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;If the appraisal institution cannot give a definite appraisal conclusion, the Parties shall be
deemed having no objection to product quality and the appraisal expenses shall be shared by the
Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.5 Payment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.1 The
total Payment for Goods payable by the Buyer under this Contract
shall be [****]* renminbi (RMB[****]*). Before the
25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, the Buyer shall make the Payment for Goods for next month&#146;s
Products to the Seller pursuant to the provisions set forth in Exhibit&nbsp;B. The Seller shall be
entitled to refuse to deliver Products to the Buyer before it receives such Payment for Goods in
full. If the Buyer holds the unpaid Products, the ownership of such unpaid Products shall belong to
the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.3 Before the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, the Seller shall issue an invoice covering the
amount of the Payment for Goods already made by the Buyer for the current month Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.4 The amount payable by the Buyer shall be paid to the bank account designated by the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.5 Currency. The Parties agree that all the settlements about purchase and sale shall be made in
renminbi.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.6 Delivery</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.1 All deliveries shall be made in accordance with the delivery schedule specified in Exhibit&nbsp;B.
After the Buyer makes the Payment for Goods for next month&#146;s Products in full to the Seller before
the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, the Seller shall begin to supply goods from the first week
of next month and try to supply goods to the Buyer evenly every week.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.2 Place of delivery. Unless otherwise provided in writing, the Products shall be delivered at
the Seller&#146;s location or other locations in Jiangsu Province, China designated by the Seller (e.g.
workshop, factory or warehouse). That is to say, the Products are to be collected by the Buyer. All
risks of damages, disasters or Losses to such Products after delivery shall be transferred to the
Buyer.
</DIV>


<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Polysilicon Supply
Contract has been omitted and filed separately with the Securities
and Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>





<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 6 of 20<!-- /Folio -->
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.3 Transportation and Insurance. The transportation and insurance of the Products shall be borne
by the Buyer at its own cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.4 In the event that the delivery of the Products is delayed due to the Buyer&#146;s request or the
Buyer&#146;s rejection to accept the Products delivered by the Seller without good reasons, the Seller
shall give the Buyer an extension period of ten (10)&nbsp;business days. Upon expiry of such extension
period, the Seller shall notify the Buyer in writing to place the Products in escrow to notarial
authorities or seal up the Products for storage at the warehouse designated by the Seller that is
suitable for the storage of the Products at the risk and cost of the Buyer. Once the Products are
in escrow or sealed up, the risk of the Products shall be transferred to the Buyer immediately and
the Buyer shall bear the expenses of escrow or the sealed storage. After receiving the above
written notice from the Seller, if the Buyer delays to collect the Products for more than sixty
(60)&nbsp;days (unless an Event of Force Majeure occurs), it shall be considered as irrevocable
acceptance of the Products by the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.5 Inspection:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;The Buyer shall complete the inspection about the number of packages, appearance, etc of the
Products at the time of collecting the Products. Any objection, if any, shall be raised on spot.
Otherwise, the Buyer shall be deemed having no objection to the number of packages, appearance, etc
of the Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;The Buyer shall complete the inspection about the weight of the collected Products within five
(5)&nbsp;days of delivery. In case of any objection, the Buyer shall give the Seller a written notice
about the objection to the weight of the Products within this period. The Seller shall provide the
Buyer the weight of product packages for the Buyer to calculate the weight of delivered Products.
For the avoidance of doubt, the Parties agree that if product packages are broken, the Buyer shall
not raise any weight objection with respect to such package-broken Products and the Buyer is deemed
having no objection to the quantity of such package-broken Products. If the Buyer does not give the
Seller a written notice about the objection to the weight of the Products within five (5)&nbsp;days of
delivery, the Buyer shall be deemed having no objection to the weight of such package-broken
Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;The Buyer shall complete the inspection about the quality of collected Products within ten (10)
days of delivery. In case of any objection, the Buyer shall give the Seller a written notice about
product defects within this period. If the Seller confirms that the Products are defective, the
Seller shall replace defective Products with conforming Products within sixty (60)&nbsp;days of the
receipt of such written notice. If the Buyer fails to give the Seller a written notice about
product defects within ten (10)&nbsp;days of delivery, it shall be deemed that the Products delivered by
the Seller are qualified and comply with specifications set forth in Exhibit&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;If the Buyer fails to perform inspections as per this article, it will be considered as
irrevocable acceptance of the Products by the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 7 of 20<!-- /Folio -->
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Force Majeure and Exemptions of Liability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1 Exemptions of liability applicable for the Parties
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1.1 &#147;Force Majeure&#148; means any event prevents a Party from performing this Contract in whole or in
part, which occur after the signing of this Contract and which are beyond the control of the
Parties, unforeseeable, unavoidable and insurmountable, such as earthquake, typhoon, flood or other
natural disasters, fire, explosion, war, strike or turmoil. If a Party delays in performance of or
fails to perform any obligation of this Contract due to an event of Force Majeure and such Party
who delays in performance or fails to perform is of no fault or negligence, such Party shall not be
liable for such delays in performance or failure to perform and shall not be deemed as breaching
this Contract. The Parties unanimously agree to continue to perform their obligations in this
Contract within seven days from the date the event of Force Majeure disappears (unless this
Contract cannot be performed due to Force Majeure) and to deduct the non-performance period caused
by Force Majeure and postpone this Contract accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1.2 Changes in Laws
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Where the changes in the Laws applicable to this Contract prevent this Contract from being
performed, the Parties shall not pursue any responsibility of the other Party and shall confirm the
new cooperation scheme through negotiations by adhering to the principle of equality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2 Exemptions of liability applicable for the Seller
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2.1 Production stopping due to infectious disease, accidental power outage continuing for more
than 8 hours or resulting in equipment damage, terrorism event, malicious sabotage, military act,
sovereign act, government act
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2.2 Temporary overhaul or maintenance of equipment by the Seller in case of emergency, resulting
in the delivery delay by the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2.3 Interruption of supply of silicon materials by raw material processor due to Force Majeure,
or the Seller&#146;s processor being affected by Force Majeure, as a result of which the Seller delays
in the supply of goods or fails to supply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3 Exemptions of liability applicable for the Buyer
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3.1 Production stopping due to infectious disease, terrorism event, malicious sabotage, military
act, sovereign act, government act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3.2 Temporary overhaul or maintenance of equipment by the Buyer in case of emergency, as a result
of which the Buyer is required to delay the delivery;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3.3 Interruption of supply of raw materials due to key raw material supplier being affected by
Force Majeure, as a result of which the Buyer is required to delay the delivery.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 8 of 20<!-- /Folio -->
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.4 Notification and Reply
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Party affected by the event of Force Majeure shall without any undue delay notify the other
Party in writing of the occurrence of an Event of Force Majeure, indicating the complete
explanation of such event and its cause, current situation of such event and the measures taken or
to be taken by such Party to overcome such event. The Party affected by the event of Force Majeure
shall exercise due diligence to overcome the delay in performing this Contract caused by such event
of Force Majeure and take reasonable measures at its own expenses to remedy the delayed time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Intellectual Property</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any and all drawings, data, designs, tooling, equipment, procedures, changes in engineering,
inventions, trade secrets, copyrights, circuit layout design rights, source codes, object codes,
patent applications, know-how, computer and/or product software (including part software) ,
trademarks and all other information, or technical information which were developed, made or
supplied by the Seller in the course of development, production or manufacturing of the Products,
will be the sole property of the Seller (or its licensors, if any). Nothing in this Contract shall
be construed as granting such intellectual property regarding the Products to the Buyer. In
addition, when the Buyer purchases the Products from the Seller, the Buyer shall not undertake any
direct or indirect responsibility for the disputes (if any) on intellectual property right and
other legal issues in connection with the Products or product production process.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. Confidentiality</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.1 The Parties (including their respective Affiliate participating in this Contract) acknowledge
and agree that the terms of this Contract and certain information exchanged between them pertaining
to this Contract, including information regarding research, technology, product developments,
marketing plans or conditions, products information, business strategies, and the like, constitutes
&#147;Confidential Information&#148; of the Party disclosing the information (&#147;Disclosing Party&#148;). The
purpose of the exchange of the Confidential Information is to allow the Parties to perform their
obligations and responsibilities under this Contract. During the Contract Term, and for a period of
one (1)&nbsp;year following its termination or cancellation, the Party receiving any Confidential
Information, and its employees, attorneys, financial advisors, officers, directors and shareholders
who receive such Confidential Information (hereinafter referred as to &#147;Receiving Party&#148;) shall not,
except with the prior written consent of the Disclosing Party, use, divulge, disclose or
communicate, to any person, firm, corporation or entity, in any manner whatsoever, the terms of
this Contract or any Confidential Information of the Disclosing Party; provided, however, that each
Party may use, divulge, disclose or communicate the terms of this Contract or Confidential
Information of the Disclosing Party to its Affiliate which undertakes to keep such information
strictly confidential in accordance with the provisions of this Contract and has a &#147;need to know&#148;
such information in order to perform this Contract. Each Party further agrees to exercise the
degree of care to avoid publication or dissemination of the Confidential Information disclosed to
it by the other Party under this Contract at the level not lower than as it employs with respect to
protecting its own Confidential Information, but no less than a reasonable degree of care in any
event. Confidential Information does not and shall not include information that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;was already known to the Receiving Party at the time such information is disclosed by the other
Party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;was or became publicly known without Receiving Party&#146;s fault;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;was rightfully received from a third party without restriction;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 9 of 20<!-- /Folio -->
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;was independently developed by the Receiving Party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(e)&nbsp;was approved for release by written authorization of the Party disclosing such information
under this Contract; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(f)&nbsp;was required by legal or financial reporting purposes to be disclosed; provided, however, that
the Party being required to disclose shall, if circumstances permit, provide advance notice to the
other Party and shall allow the other Party a reasonable opportunity to oppose such disclosure, if
appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.2 The Receiving Party shall treat such Confidential Information as confidential. The Receiving
Party shall not reproduce or use such Confidential Information except for the purpose of fulfilling
its obligations under this Contract. The Receiving Party shall return all Confidential Information
to the Disclosing Party upon completion of such obligations, or upon the request of the Disclosing
Party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.3 The Receiving Party acknowledges and agrees that the illegal use or disclosure of the
Confidential Information may cause irreparable injury to Disclosing Party for which its loss may
not be adequately remedied by Laws, and that any actual or contemplated breach of this clause will
entitle Disclosing Party to obtain immediate injunctive relief prohibiting such breach, in addition
to any other rights and remedies available to it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.4 The Parties (including the Affiliate procuring Confidential Information under this Contract)
agree that any Party shall not, without obtaining the prior consent from the other Party, issue or
release any announcement, report, declaration, or message about this Contract or any transaction or
clause of this Contract. However, any Party or its Affiliate may disclose the contents of this
Contract according to and within the extent of the compulsive requirements of its local Laws and
applicable Laws. After achieving a mutual consent on the details of the news report, the Parties
may report the signing and contents of this Contract through press.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. Ownership and Use of Drawings, Documents and Other Items</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All drawings, blueprints, dies, patterns, tools, printing plates and any other items or documents
prepared or constructed by the Seller to develop, produce or manufacture the Products hereunder
shall be the sole property of the Seller, and promptly upon the termination or cancellation of this
Contract, shall be returned to the Seller. The Buyer shall use all drawings, blueprints, dies,
patterns, tools, printing plates and any other items or documents prepared or constructed by Seller
solely for the purposes of this Contract and shall not use any of such items for the benefit of any
third party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Default, Termination and Cancellation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1 Defaulting liability of the Buyer for its failure to purchase or pay
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1.1 If the Buyer fails to purchase the Products from the Seller in the volume as specified
hereunder in a given month, the Seller may in its own discretion resell such Products not purchased
by the Buyer to the Chinese or overseas market, but the Buyer shall pay to the Seller the portion
of the price set forth herein in excess of the reselling price of such Products as well as the
expenses arising in connection with resale. The reselling price under the Seller&#146;s resale contract
shall not be less than 80% of the then current market price and the expenses incurred by resale
shall not be more than 2% of the contract amount of such Products resold.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 10 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1.2 If the Buyer fails to make the Payment for Goods at the agreed time, the Buyer shall pay the
liquidated damages of 0.05% of the overdue amount per delayed day and this Contract shall continue
to be performed. If the Buyer&#146;s delay in making the Payment for Goods exceeds thirty (30)&nbsp;days
(inclusive), then the Seller may give a notice to the Buyer, requiring the Buyer to remedy its
default within thirty (30)&nbsp;days and the Buyer shall continue to pay the liquidated damages to the
Seller pursuant to the foregoing provision. If the Buyer fails to remedy its default within thirty
(30)&nbsp;days after such notice is issued, the Buyer shall be deemed materially defaulting under this
Contract, unless an event of Force Majeure occurs; the Seller shall be entitled to notify the Buyer
in writing to terminate this Contract unilaterally and termination shall become effective after
such notice is delivered to the Buyer. If the Buyer has remedied its default within the above
notice period, then the Seller shall not be entitled to terminate this Contract. In case of any
default or material default on the part of the Buyer, the Seller shall be entitled not to terminate
this Contract but obtain the remedy under Article&nbsp;8.1.1 while obtaining the liquidated damages
under Article&nbsp;8.1.2 from the Buyer, unless this Contract shall be terminated according to the
effective legal instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1.3 If the Buyer materially defaults and the Seller terminates this Contract, the Buyer shall
undertake the following defaulting liability to the Seller:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;Pay the liquidated damages for overdue payment (up to the date of termination of this Contract)
pursuant to the provisions of Article&nbsp;8.1.2; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Pay to the Seller the liquidated damages of fifteen percent (15%) of the unpaid portion of the
Total Contract Price of this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2 Defaulting liability of the Seller for its failure or delay in supplying goods
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2.1 If the Seller fails to replace defective Products with conforming Products within sixty (60)
days as specified in Article&nbsp;3.6.5 or the Products supplied by the Seller (whether manufactured by
itself or purchased by it from a third party) for a given month or Contract Year cannot meet the
volume of Products demanded by the Buyer under this Contract, the Buyer may, after notification and
giving a thirty-day grace period, in its own discretion purchase the substitutes of the
undersupplied Products from the Chinese or overseas market, but the Seller shall pay to the Buyer
the portion of the purchase price of such substitutes in excess of the price specified herein as
well as the expenses arising in connection with purchase of substitutes. The price of substitutes
under the contract when the Buyer purchases products from a third party shall not be higher than
120% of the then current market price. The expenses incurred in connection with purchase of
substitutes shall not be more than 2% of the contract amount of such substitutes purchased. For the
avoidance of doubt, the circumstance on the part of the Seller under this Article&nbsp;8.2.1 will be
distinct from and not constitute the default of delayed delivery or undersupply on the part of the
Seller under this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2.2 If the Seller fails to deliver goods at agreed time or undersupplies goods, the Buyer shall
timely notify the Seller of the details of delayed delivery or undersupply. The Seller shall pay
the liquidated damages of 0.05% of the amount of undelivered goods per delayed day and this
Contract shall continue to be performed. If the Seller&#146;s delay in delivery exceeds forty-five (45)
days (inclusive)&nbsp;upon receipt of the Buyer&#146;s notice about delayed delivery or undersupply, then the
Buyer may give a notice to the Seller, requiring the Seller to remedy its default within thirty
(30)&nbsp;days. If the Seller fails to remedy its default within thirty (30)&nbsp;days after such notice is
issued, the Seller shall be deemed materially defaulting under this Contract, unless an event of
Force Majeure occurs; the Buyer shall be entitled to notify the Seller in writing to terminate this
Contract unilaterally and termination shall become
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 11 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">effective after such notice is delivered to the Seller. If the Seller
has remedied its default within the above notice period, then the Buyer shall be not entitled to terminate this
Contract. During the default period of the Seller&#146;s delay in delivery, the Buyer shall be
entitled not to terminate this Contract but obtain the remedy under Article&nbsp;8.2.1, unless this
Contract shall be terminated according to the effective legal instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2.3 If the Seller materially defaults and the Buyer terminates this Contract, the Seller shall
undertake the following defaulting liability to the Buyer:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;Pay the liquidated damages for delayed delivery (up to the date of termination of this
Contract) pursuant to the provisions of Article&nbsp;8.2.2; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Pay to the Buyer the liquidated damages of seven point five percent (7.5%) of the unperformed
portion of the Total Contract Price of this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.3 The Parties unanimously agree and acknowledge that at the signing of this Contract, they have
predicted the Losses as may arise from defaults. The calculating method is the same as that for
the liquidated damages. The Parties unanimously agree to waive the right to request an adjustment
if liquidated damages are higher than actual losses as specified under Article&nbsp;114 of the Contract
Law of the People&#146;s Republic of China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4 Termination and Cancellation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4.1 This Contract shall be terminated when the following circumstances occur:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;This Contract expires; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;upon mutual agreement of the Parties in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4.2 A Party may notify the other Party in writing to terminate this Contract when the following
circumstances occur:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;When the Buyer or the Seller commits a material default under Article&nbsp;8.1 or 8.2, the
non-defaulting party may notify the defaulting party in writing to terminate this Contract
unilaterally; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;If a Party is declared bankrupt, or becomes the object of bankruptcy, liquidation or
dissolution proceedings or is wound up or becomes insolvent, the other Party may notify it in
writing to terminate this Contract unilaterally.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Notices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All notices or communications required to be served hereunder shall be in writing and addressed or
delivered to the representative of the other Party specified herein below. Notices shall be deemed
received (a)&nbsp;upon delivery, when personally delivered; (b)&nbsp;upon receipt of the notice or document,
when sent via registered or certified mail; and (c)&nbsp;on the second business day after delivery, when
sent via express courier service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Representatives of each Party for all communications and correspondence regarding this Contract:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Seller&#146;s representative:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Address: No.66 Yangshan Road, Xuzhou Economic Development Zone, Jiangsu Province
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Attn.: Zhu Guomin
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 12 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Buyer&#146;s representative:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">CSI Cells Co., Ltd.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Address: No.199 Lushan Road, Suzhou New District, Jiangsu Province
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Attn.: Qu Xiaohua
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Buyer or the Seller may change the address or representative designated for delivery and to
receive notice and document hereunder by written notice to the other Party. All correspondences and
communications between the Parties shall be subject to the coordination procedures that shall be
developed jointly by the Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. Language</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Contract is written in Chinese. In case of any other translation, the Chinese version shall
prevail.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. Choice of Laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The validity, interpretation and performance of this Contract shall be governed by the laws of the
People&#146;s Republic of China, without regard to the non-PRC laws and conflict of law provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. Dispute Resolution</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except as otherwise provided herein, any dispute, controversy or claim arising out of or in
connection with this Contract, or the breach, termination or validity thereof, shall be finally
settled by the China International Economic and Trade Arbitration Commission, Shanghai
Sub-commission (&#147;CIETAC&#148;) under the then effective PRC arbitration rules of CIETAC. The seat of
arbitration shall be Shanghai, and the language used in the arbitral proceedings shall be Chinese
Mandarin.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The arbitral award made and granted by the arbitrators shall be final, binding and incontestable
and may be used as the basis for enforcement in a court having competent jurisdiction. All costs of
arbitration (including, but not limited to, those incurred in the appointment of arbitrators) shall
be apportioned according to the arbitral award.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. Non-waiver</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The failure of either Party to demand strict performance of the provisions hereof or to exercise
any right conferred hereby shall not be construed as a waiver or relinquishment of its rights to
assert or rely on any such provision or right in the future.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. Severability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The invalidity of any provision of this Contract shall not affect the validity of any other
provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. Assignment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Without the prior written consent of the other Party, neither the Buyer nor the Seller may assign
any of its obligations hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 13 of 20<!-- /Folio -->
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. Survival</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All the remedies and confidentiality rights and obligations herein contained shall survive upon the
termination or cancellation of this Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. Amendments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No amendment, modification or supplement to or waiver of any provision of this Contract shall be
valid unless reduced to writing and executed by the Buyer and the Seller.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>18. Entirety</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Contract and the exhibits hereto constitute the entire agreement between the Parties with
respect to the subject matter hereof and supersede any prior contract or understanding between the
Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>19. Effectiveness</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Contract shall become effective as of the date when it is formally signed and sealed by the
duly authorized representatives of the Parties.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The
texts of this Contract end here; signature page follows)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 14 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(Signature page)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt"><B>Seller: Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(corporate seal)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;with corporate seal of Jiangsu Zhongneng Polysilicon Technology Development
Co., Ltd.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Signature
of authorized representative) /s/
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>Buyer: CSI Cells Co., Ltd.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(corporate seal)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;with corporate seal of CSI Cells Co., Ltd.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Signature of authorized representative) /s/
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>



<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 15 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;A<BR>
Specifications and Quality Standard of Solar Polysilicon Products</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Boron: &#060;=50 ppba<BR>
2. Phosphorus: &#060;=100 ppba<BR>
3. Carbon: &#060;=1.00 ppma<BR>
4. Total metals (Fe, Cu, Ni, &#038; Cr etc): &#060;=1.00 ppma<BR>
5. Life time (N type): 50<FONT style="font-family: Symbol">&#109;</FONT> s

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>




<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 16 of 20<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;B<BR>
Product Names, Product Supply Volumes, Product Delivery Progress, Product Payment Progress and<BR>
Product Prices</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Month</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Unit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">September</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">October</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">November</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">December</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Total</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Planned volume of Products to supply</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ton</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">15</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">15</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">15</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">15</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">60</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax-included unit price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Yuan/kg</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax-included total price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Yuan</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Applicable tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Monthly payment date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2008-8-25</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2008-9-25</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2008-10-25</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2008-11-25</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">Planned monthly supply volumes and prices for 2009
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Quarter</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Unit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Q1</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Q2</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Q3</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Q4</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Total</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Planned volume of Products to supply</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ton</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">125</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">125</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">450</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax-included unit price (RMB)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Yuan/kg</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax-included total price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">yuan</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">[****]*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Applicable tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">17%</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD colspan="3" nowrap align="left">Notes:</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Tax-included unit price and tax-included total price are subject to a value-added tax rate of
17% and shall be adjusted accordingly if value-added tax rate is adjusted.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Before the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, the Buyer shall make the full Payment for Goods
for next month to the Seller.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>In December&nbsp;2008, the Parties shall agree upon the monthly supply volume of 2009 depending on
the Seller&#146;s productive capacity and production plan as well as the Buyer&#146;s purchase capacity.
Otherwise, the monthly supply volume of 2009 will be subject to the three-month average
monthly volume of each quarter of current year. Current month&#146;s Payment for Goods is the value
from the tax-included unit price of current year multiplying the monthly Product supply volume
of current month.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>



<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Polysilicon Supply
Contract has been omitted and filed separately with the Securities
and Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>


<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 17 of 20<!-- /Folio -->
</DIV>




</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;C<BR>
List of Affiliate of Parties Participating in this Contract and Format of Letter of Undertaking</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>List of Affiliate</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">List of Seller&#146;s Affiliate:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 26pt">List of Buyer&#146;s Affiliate:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CSI Central Solar Power Co., Ltd.<BR>
Changshu CSI Advanced Solar Inc.

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 18 of 20<!-- /Folio -->
</DIV>
</DIV>


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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Letter of Undertaking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our company &#091;Changshu CSI Advanced Solar Inc.&#093; knows that &#091;Jiangsu Zhongneng Polysilicon Technology
Development Co., Ltd.&#093; and &#091;CSI Cells Co., Ltd.&#093; entered into the Polysilicon Supply Contract
(hereinafter referred to as &#147;the Contract&#148;) on &#091;August&#093; &#091;20&#093;, 2008. As the Buyer&#146;s affiliate
meeting the conditions stipulated in the Contract, our company now applies to participate in the
Contract as the buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company hereby irrevocably undertakes that if our company participates in the Contract as
the buyer (&#147;our party&#148;), our company shall be bound by the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company knows, understands and agrees to be bound by, all the provisions of the Contract
and its exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company and our party&#146;s affiliate participating in the Contract will jointly and severally
undertake the obligations and responsibilities under the Contract. Our company acknowledges that if
any affiliate of the other party has performed the obligations under the Contract, it will be
deemed that the other party has performed the contractual obligations to our party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our company no longer meets the conditions for our party&#146;s affiliate under the Contract,
our company will no longer enjoy the rights under the Contract, but not be exempt from the joint
and several responsibility on our part under the Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 30%">Undertaking party (seal): Changshu CSI Advanced Solar Inc.<BR>
Legal representative or authorized representative (signature):<BR>
/s/<BR>
August&nbsp;20, 2008

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 19 of 20<!-- /Folio -->
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Letter of Undertaking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our company &#091;CSI Central Solar Power Co., Ltd.&#093; knows that &#091;Jiangsu Zhongneng Polysilicon
Technology Development Co., Ltd.&#093; and &#091;CSI Cells Co., Ltd.&#093; entered into the Polysilicon Supply
Contract (hereinafter referred to as &#147;the Contract&#148;) on &#091;August&#093; &#091;20&#093;, 2008. As the Buyer&#146;s
affiliate meeting the conditions stipulated in the Contract, our company now applies to participate
in the Contract as the buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company hereby irrevocably undertakes that if our company participates in the Contract as
the buyer (&#147;our party&#148;), our company shall be bound by the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company knows, understands and agrees to be bound by, all the provisions of the Contract
and its exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company and our party&#146;s affiliate participating in the Contract will jointly and severally
undertake the obligations and responsibilities under the Contract. Our company acknowledges that if
any affiliate of the other party has performed the obligations under the Contract, it will be
deemed that the other party has performed the contractual obligations to our party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our company no longer meets the conditions for our party&#146;s affiliate under the Contract,
our company will no longer enjoy the rights under the Contract, but not be exempt from the joint
and several responsibility on our part under the Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 30%">Undertaking party (seal): CSI Central Solar Power Co., Ltd.<BR>
Legal representative or authorized representative (signature):<BR>
/s/<BR>
August&nbsp;20, 2008

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-A
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 20 of 20<!-- /Folio -->
</DIV>
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&#091;Translation&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Solar Silicon Wafer Supply Contract</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Between
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">AND
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CSI Cells Co., Ltd.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Seller Contract Number: &#091;SSC00231&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Buyer Contract Number: CSI-ZN80818-B
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">August&nbsp;20, 2008
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 1 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Silicon Wafer Supply Contract</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Solar Silicon Wafer Supply Contract (hereafter referred to as &#147;this Contract&#148;) is
entered into by the parties below in &#091;Suzhou&#093;, China on August&nbsp;20, 2008:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., a company incorporated in the
People&#146;s Republic of China, having its registered address at No.66 Yangshan Road, Xuzhou Economic
Development Zone, Jiangsu Province, P.R. China (hereinafter referred to as the &#147;Seller&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AND
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Cells Co., Ltd., a company incorporated in the People&#146;s Republic of China, having its
registered address at No.199 Lushan Road, Suzhou New District, Jiangsu Province, P.R. China
(hereinafter referred to as the &#147;Buyer&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Buyer and the Seller are hereinafter collectively referred to as the &#147;Parties&#148; and individually
as a &#147;Party&#148;.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Preamble</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">WHEREAS, the Buyer and the Seller intend to establish a long-term trade relationship. The Buyer
intends to purchase certain quantities of silicon wafers from the Seller, and the Seller intends to
be a supplier and to sell certain quantities of silicon wafers to the Buyer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements herein contained, the Parties reach the following:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>1. Definitions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As used herein, unless otherwise provided in the clauses of this Contract or defined by the
context, the following terms shall have the following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.1 &#147;This Contract&#148; means this Solar Silicon Wafer Supply Contract, including the Preamble
and the terms of its body, all exhibits as well as any amendment, modification and supplement to
this Contract as may be made by the Parties from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.2 &#147;Contract Term&#148; means the period from the Effective Date of this Contract to its expiry date,
which is the effective Contract Term. &#147;Contract Supply Term&#148; means the period during which the
Parties supply and accept goods, i.e. six Contract Years from January&nbsp;1, 2010 to December&nbsp;31, 2015.
During this period, the Seller shall supply goods according to the volume, delivery, quality, etc
as set forth herein, and the Buyer shall accept goods and make Payment for Goods according to the
volume, price, Payment for Goods, etc as set forth herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.3 &#147;Business Day&#148; means any day on which companies in the PRC are generally open for business,
including a Saturday or Sunday which the PRC government temporarily declares to be a working day
(&#147;Working Rest Day&#148;), but excluding a statutory festival or holiday, or a Saturday or Sunday other
than the Working Rest Day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.4 &#147;Effective Date&#148; means the date the Parties duly sign and seal this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.5 &#147;Contract Year&#148; means any calendar year during the Contract Term.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 2 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.6 &#147;Affiliate&#148; means, with respect to any Party, any company directly or indirectly controlling,
or controlled by or under common control with such Party. The term &#147;control&#148; as used herein means
the direct or indirect ownership of (i)&nbsp;fifty percent (50%) or more of the voting shares or equity
of such company; or (ii)&nbsp;fifty percent (50%) or more of the registered capital of such company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.7 &#147;Loss&#148; means any and all damages, fines, fees, taxes, penalties, deficits and other losses and
expenses (including lost profits or diminution in value), including interest, reasonable expenses
of investigation, litigation costs, reasonable fees and expenses of attorneys, accountants and
other experts or other expenses of any litigation or of any claim, default or assessment (such fees
and expenses to include all fees and expenses, especially including all fees and expenses of
attorneys, incurred in connection with (i)&nbsp;the investigation or defense of any third party claims,
(ii)&nbsp;asserting or disputing any rights under this Contract against any Party hereto or otherwise,
and (iii)&nbsp;settling any action or proceeding or threatened action or proceeding).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.8 &#147;Intellectual Property&#148; means all the rights from any of the following items: invention,
discovery, improvement, utility model, appearance design, copyrightable work, industrial design,
algorithm, data structure, trade secrets or know-how, product price, specification, confidential
information, or any idea having commercial value. Intellectual Property shall also include any
trademark, trade dress, trade name, domain name, or other marks that serve to identify and
distinguish goods or services as coming from, or falling under the control of a single source.
Intellectual Property shall include all rights of whatsoever nature in computer software and data,
all intangible rights or privileges of a nature similar to any of the foregoing in every case in
any part of the world, and all rights in any applications and granted registrations for any of the
foregoing rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.9 &#147;China&#148; or &#147;PRC&#148; means the People&#146;s Republic of China, but in this Contract, excluding Hong
Kong, Macao and Taiwan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.10 &#147;Renminbi&#148; or &#147;RMB&#148; means the lawful currency of China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.11 &#147;Law&#148; means the laws, regulations, rules, and other legislative, executive or judicial
notices, orders, decisions or pronouncements binding on either Party, or in relation to the subject
matter of this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.12 &#147;Product&#148; or &#147;this Product&#148; means the silicon wafer supplied by the Seller to the Buyer
according to the product specification in Exhibit&nbsp;A to this Contract. The Seller agrees to sell and
deliver and the Buyer agrees to buy and acquire the Products in accordance with this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.13 &#147;Price&#148; has the meaning as defined in Article&nbsp;3.2.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.14 &#147;Payment for Goods&#148; means the total amount of the price of the Products and the value-added
tax borne by the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.15 &#147;Advance Payment&#148; has the meaning as defined in Article&nbsp;3.5.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.16 &#147;Total Contract Price&#148; means the total Payment for Goods payable by the Buyer under this
Contract, which is calculated on the basis of the volume specified in Exhibit&nbsp;C hereto or the
actual supply volume adjusted by the Seller after adjustments are made according to this Contract
as well as the corresponding product price and value-added tax.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 3 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>2. General Provisions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.1. The exhibits attached hereto constitute an integral part of this Contract and have the same
effect as this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.2. Headings preceding the text, articles and clauses hereof are inserted solely for convenience
of reference and shall not be construed to affect the meaning, construction or validity of this
Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.3. During the Contract Term, the Buyer shall purchase and accept the Products under this
Contract, and pay for the corresponding Payments for Goods, pursuant to the terms and conditions
set forth in this Contract and the exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.4. During the Contract Term, the Seller shall sell and deliver the Products under this Contract, pursuant to the terms and conditions set forth in
this Contract and the exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.5 Each Party and its Affiliate confirmed by the other Party in writing to participate in this
Contract shall not withdraw from this Contract without the prior written consent of the other
Party. The foregoing confirmation merely represents the knowledge of the other Party&#146;s Affiliate
participating in this Contract and does not grant either Party with the right of approval or
consent with respect to the other Party&#146;s Affiliate participating in this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.6 With respect to the performance of a Party&#146;s obligations hereunder, such Party and its
Affiliate participating in this Contract shall undertake the irrevocable, joint and several
responsibility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.7 The relevant Affiliate of each Party participating in this Contract shall sign the letter of
undertaking in the format as specified in Exhibit&nbsp;D.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.8 This Contract is a &#147;take or pay contract&#148;. The Buyer understands and acknowledges that: based
on the reliance on the Buyer and the judgment of the volume of the Products required by the Buyer,
the Seller has invested heavily to expand its productive capacity so as to meet the Buyer&#146;s product
demands. In the event that the Buyer fails to perform its contracted volume of Products to purchase
(including but not limiting to: fails to order contracted volume and fails to pay the account
payable) in a given year within any agreed year, the Seller is entitled to give payment notice to
the Buyer at their full contract price regardless of the difference between the ordered and the
contracted volume and the Buyer is liable to pay such amount specified on that payment notice in full
within thirty (30)&nbsp;days upon the issuance of such payment notice. The Buyer specifically acknowledges and accepts that
it will be liable for the full purchase price of volume differed between the ordered and the
contracted volume.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.9 The Parties understand and specifically agree that the Seller will provide the Products only
pursuant to the provisions of Exhibit&nbsp;A hereto; the suitability for a particular purpose as well as
the issues regarding the processing, use and application of the Products shall be solely decided by
and the responsibility of the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.10 The Parties understand and specifically agree that without the prior written consent of the
Seller, the Buyer shall not transfer the Products purchased from the Seller hereunder to others
with or without compensation, the Products shall be merely used for the Buyer&#146;s production and the
Seller will not be responsible for the Products transferred by the Buyer to others with or without
compensation, unless the Buyer entrusts processing with a third party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 4 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.11 The Seller shall be entitled to designate a third party to process the Products or process the
Products by itself. If the Seller entrusts processing with a third party, the Seller shall
guarantee that the Products supplied hereunder comply with the specifications as stipulated in
Exhibit&nbsp;A hereto. The Seller shall be responsible for the quality of the Products processed by a
third party entrusted by it.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>3. Supply of Products</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.1 Products</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Products to be supplied under this Contract shall meet the specifications as stipulated in
Exhibit&nbsp;A to this Contract. The specifications set forth in Exhibit&nbsp;A may be amended only in
writing upon the agreement of the Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.2 Price</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.2.1 Within the Contract Term, the tax-included unit price of the Products in Exhibit&nbsp;C is a fixed
price. The Parties hereto unanimously agree that upon the execution of this Contract, neither Party
may request for the adjustment of the said price by the other Party for any grounds, unless the
statutory rate of value-added tax is adjusted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.2.2 The tax-included unit price set forth in Exhibit&nbsp;C hereto as well as the Payment for Goods
payable include value-added tax. If the rate of value-added tax is adjusted, the tax-included
unit price set forth in Exhibit&nbsp;C hereto as well as the Payment for Goods payable shall be adjusted
accordingly as of the date when the new tax rate becomes effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.3 Volume</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.3.1 The volume of the Products to be purchased by the Buyer from the Seller and to be supplied by
the Seller to the Buyer within the Contract Term shall be subject to Exhibit&nbsp;C (the total volume
under this Contract is 750,800,000 pieces). The Buyer and the Seller are entitled to adjust
(including increase and reduce) the agreed next month&#146;s supply volume set forth under Exhibit&nbsp;B within the
range of 20% pursuant to the provisions of Article&nbsp;3.3.2, which shall not constitute the default
concerning delivery or acceptance under this Contract, but the supply and acceptance volume in the
adjustment month shall not be less than 80% of the volume for the current month set forth in
Exhibit&nbsp;B. As regards the shorted (or increased) delivery in the adjustment month, the Parties
shall increase or reduce volume accordingly to achieve the scheduled volume within 90&nbsp;days from
the 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of next month. Within each supply year, the number of such volume
adjustments shall not be more than three. In addition, the Parties hereto unanimously agree that
upon the execution of this Contract, neither Party may request for the adjustment of the said
volume by the other Party for any grounds, unless otherwise agreed in writing by the Parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.3.2 The Parties unanimously agree that adjustment of monthly volume shall be made according to
the following method:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;If the Seller (or the Buyer) needs to reduce the monthly volume of the Products in Exhibit&nbsp;B,
it shall, before the 15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, notify the other Party in writing of next
month&#146;s volume. Adjusted product volume and Payment for Goods shall be subject to the &#147;Monthly
Adjustment Notice of Product Volume&#148; issued by the Seller. If the monthly volume adjusted by the
Seller conforms to the provisions of this Contract, the Buyer shall accept such adjustment
unconditionally.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 5 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;If the Seller (or the Buyer) needs to increase the monthly volume of the Products in Exhibit&nbsp;B,
it shall, before the 10<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, notify the other Party in writing of next month&#146;s supply
volume. Adjusted product volume and Payment for Goods shall be subject to the &#147;Monthly Adjustment
Notice of Product Volume&#148; issued by the Seller. If the monthly volume adjusted by the Seller
conforms to the provisions of this Contract, the Buyer shall accept such adjustment
unconditionally. For the Payment for Goods corresponding to the increased volume of the Products
subsequent upon the adjustment put forth by the Seller, if the Buyer has any difficulty in making
payment, the Seller shall give the Buyer a 30-day payment grace period (during which the Buyer is
not required to bear the obligation on overdue payment, unless the Buyer fails to make the original
Payment for Goods in full). The Seller is entitled to refuse to deliver the Products to the Buyer
before it receives the full Payment for Goods with respect to such increased volume.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.4 Quality</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.4.1 The Seller shall only guarantee that the delivered Products will comply with the
specification as set forth in Exhibit&nbsp;A. If the Products do not comply with the specification set
forth in Exhibit&nbsp;A, the Parties shall proceed in accordance with Article&nbsp;3.6.5. If any claim or
litigation (including, but not limited to, default and product infringement) arisen by reason of
any defect of the Products after delivery to Party B is alleged, the Buyer is entitled to opt for
the following remedy and the Seller&#146;s obligation is specifically limited to: (i)&nbsp;replace
nonconforming Products; or (ii)&nbsp;refund the purchase price of such nonconforming Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.4.1 In case any dispute regarding product quality arises between the Parties, any Party or the
Parties may entrust a legal inspection institution to perform appraisal and the appraisal report
issued by such appraisal institution shall bind upon the Parties. The appraisal expenses shall be
prepaid by the entrusting Party and shall be borne according to the methods below based on the
appraisal report:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;If the Products have any quality problem according to appraisal report, the appraisal expenses
shall be borne by the Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;If the Products have no quality problem according to appraisal report, the appraisal expenses
shall be borne by the Buyer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;If the appraisal institution cannot give a definite appraisal conclusion, the Parties shall be
deemed having no objection to product quality and the appraisal expenses shall be shared by the
Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.5 Payment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.1 Advance Payment
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Advance Payment herein is non-refundable, irrevocable and of the nature of security deposit.
The total amount of the Advance Payment is [****]* renminbi
(RMB[****]*).
The term of paying the Advance Payment shall be the same as the term stipulated in Exhibit&nbsp;B. The
Buyer explicitly acknowledges that it has understood and agreed: after execution of this Contract,
the Seller shall not be responsible for refunding all or part of the Advance Payment to the Buyer
in any case, unless the Seller breaches this Contract, resulting in the Buyer to prematurely cancel
or terminate this Contract, or this Contract expires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Advance Payment shall offset the Payment for Goods payable by the Buyer only in accordance with
the following requirement:
</DIV>


<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Solar Silicon Wafer
Supply Contract has been omitted and filed separately with the
Securities and Exchange Commission, pursuant to Rule&nbsp;24b-2.
    </TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 6 of 21<!-- /Folio -->
</DIV>



</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Parties confirm that from January&nbsp;2011, the Buyer can offset the monthly Payment for Goods with
the Advance Payment at the standard of RMB 1 per piece and the remaining portion of the Advance
Payment will be fully deducted from the Payment for Goods for December&nbsp;2015.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.2 Payment for Goods. The total Payment for Goods payable by the Buyer under this Contract shall
be [****]* renminbi (RMB [****]*). Before the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, the Buyer shall make
the Payment for Goods for next month&#146;s Products to the Seller pursuant to the provisions set forth
in Exhibit&nbsp;C. The Seller shall be entitled to refuse to deliver Products to the Buyer before it
receives such Payment for Goods in full. If the Buyer holds the unpaid Products, the ownership of
such unpaid Products shall belong to the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.3 Before the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, the Seller shall issue an invoice covering the
amount of the Payment for Goods already made by the Buyer for the current month Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.4 The amount payable by the Buyer shall be paid to the bank account designated by the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5.5 Currency. The Parties agree that all the settlements about purchase and sale shall be made in
renminbi.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.6 Delivery</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.1 All deliveries shall be made in accordance with the delivery schedule specified in Exhibit&nbsp;C.
After the Buyer makes the Payment for Goods for next month&#146;s Products in full to the Seller before
the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, within the Contract Supply Term, the Seller shall begin to
supply goods from the first week of next month and try to supply goods to the Buyer evenly every
week.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.2 Place of delivery. Unless otherwise provided in writing, the Products shall be delivered at
the Seller&#146;s location or other locations in Jiangsu Province, China designated by the Seller (e.g.
workshop, factory or warehouse). That is to say, the Products are to be collected by the Buyer. All
risks of damages, disasters or Losses to such Products after delivery shall be transferred to the
Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.3 Transportation and Insurance. The transportation and insurance of the Products shall be borne
by the Buyer at its own cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.4 In the event that the delivery of the Products is delayed due to the Buyer&#146;s request or the
Buyer&#146;s rejection to accept the Products delivered by the Seller without good reasons, the Seller
shall give the Buyer an extension period of ten (10)&nbsp;business days. Upon expiry of such extension
period, the Seller shall notify the Buyer in writing to place the Products in escrow to notarial
authorities or seal up the Products for storage at the warehouse designated by the Seller that is
suitable for the storage of the Products at the risk and cost of the Buyer. Once the Products are
in escrow or sealed up, the risk of the Products shall be transferred to the Buyer immediately and
the Buyer shall bear the expenses of escrow or the sealed storage. After receiving the above
written notice from the Seller, if the Buyer delays to collect the Products for more than sixty
(60)&nbsp;days (unless an Event of Force Majeure occurs), it shall be considered as irrevocable
acceptance of the Products by the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6.5 Inspection:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;The Buyer shall complete the inspection about the number of packages, appearance, etc of the
Products at the time of collecting the Products. Any objection, if any, shall be raised on spot.
Otherwise, the Buyer shall be deemed having no objection to the number of packages, appearance, etc
of the Products.
</DIV>



<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    This portion of the Solar Silicon Wafer Supply Contract has been omitted and filed separately with the Securities and Exchange Commission, pursuant to Rule 24b-2.</TD>
</TR>

</TABLE>






<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 7 of 21<!-- /Folio -->
</DIV>

</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;The Buyer shall complete the inspection about the weight of the collected Products within five
(5)&nbsp;days of delivery. In case of any objection, the Buyer shall give the Seller a written notice
about the objection to the weight of the Products within this period. The Seller shall provide the Buyer the weight of product
packages for the Buyer to calculate the weight of delivered Products. For the avoidance of doubt,
the Parties agree that if product packages are broken, the Buyer shall not raise any weight
objection with respect to such package-broken Products and the Buyer is deemed having no objection
to the quantity of such package-broken Products. If the Buyer does not give the Seller a written
notice about the objection to the weight of the Products within five (5)&nbsp;days of delivery, the
Buyer shall be deemed having no objection to the weight of such package-broken Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;The Buyer shall complete the inspection about the quality of collected Products within ten (10)
days of delivery. In case of any objection, the Buyer shall give the Seller a written notice about
product defects within this period. If the Seller confirms that the Products are defective, the
Seller shall replace defective Products with conforming Products within sixty (60)&nbsp;days of the
receipt of such written notice. If the Buyer fails to give the Seller a written notice about
product defects within ten (10)&nbsp;days of delivery, it shall be deemed that the Products delivered by
the Seller are qualified and comply with specifications set forth in Exhibit&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;If the Buyer fails to perform inspections as per this article, it will be considered as
irrevocable acceptance of the Products by the Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Force Majeure and Exemptions of Liability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1 Exemptions of liability applicable for the Parties
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1.1 &#147;Force Majeure&#148; means any event prevents a Party from performing this Contract in whole or in
part, which occur after the signing of this Contract and which are beyond the control of the
Parties, unforeseeable, unavoidable and insurmountable, such as earthquake, typhoon, flood or other
natural disasters, fire, explosion, war, strike or turmoil. If a Party delays in performance of or
fails to perform any obligation of this Contract due to an event of Force Majeure and such Party
who delays in performance or fails to perform is of no fault or negligence, such Party shall not be
liable for such delays in performance or failure to perform and shall not be deemed as breaching
this Contract. The Parties unanimously agree to continue to perform their obligations in this
Contract within seven days from the date the event of Force Majeure disappears (unless this
Contract cannot be performed due to Force Majeure) and to deduct the non-performance period caused
by Force Majeure and postpone this Contract accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1.2 Changes in Laws
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Where the changes in the Laws applicable to this Contract prevent this Contract from being
performed, the Parties shall not pursue any responsibility of the other Party and shall confirm the
new cooperation scheme through negotiations by adhering to the principle of equality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2 Exemptions of liability applicable for the Seller
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2.1 Production stopping due to infectious disease, accidental power outage continuing for more
than 8 hours or resulting in equipment damage, terrorism event, malicious sabotage, military act,
sovereign act, government act;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2.2 Regular overhaul or maintenance of equipment by the Seller (the number of annual regular
overhauls is three and the duration of each overhaul does not exceed three weeks) or temporary
overhaul or maintenance in case of emergency, resulting in the delivery delay by the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 8 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2.3 Interruption of supply of raw materials by raw material processor due to Force Majeure, or
the Seller&#146;s processor being affected by Force Majeure, as a result of which the Seller delays in the supply of
goods or fails to supply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3 Exemptions of liability applicable for the Buyer
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3.1 Production stopping due to infectious disease, terrorism event, malicious sabotage, military
act, sovereign act, government act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3.2 Temporary overhaul or maintenance of equipment by the Buyer in case of emergency, as a result
of which the Buyer is required to delay the delivery;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3.3 Interruption of supply of raw materials due to key raw material supplier being affected by
Force Majeure, as a result of which the Buyer is required to delay the delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.4 Notification and Reply
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Party affected by the event of Force Majeure shall without any undue delay notify the other
Party in writing of the occurrence of an Event of Force Majeure, indicating the complete
explanation of such event and its cause, current situation of such event and the measures taken or
to be taken by such Party to overcome such event. The Party affected by the event of Force Majeure
shall exercise due diligence to overcome the delay in performing this Contract caused by such event
of Force Majeure and take reasonable measures at its own expenses to remedy the delayed time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Intellectual Property</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any and all drawings, data, designs, tooling, equipment, procedures, changes in engineering,
inventions, trade secrets, copyrights, circuit layout design rights, source codes, object codes,
patent applications, know-how, computer and/or product software (including part software) ,
trademarks and all other information, or technical information which were developed, made or
supplied by the Seller in the course of development, production or manufacturing of the Products,
will be the sole property of the Seller (or its licensors, if any). Nothing in this Contract shall
be construed as granting such intellectual property regarding the Products to the Buyer. In
addition, when the Buyer purchases the Products from the Seller, the Buyer shall not undertake any
direct or indirect responsibility for the disputes (if any) on intellectual property right and
other legal issues in connection with the Products or product production process.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. Confidentiality</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.1 The Parties acknowledge and agree that the terms of this Contract and certain information
exchanged between them pertaining to this Contract, including information regarding research,
technology, product developments, marketing plans or conditions, products information, business
strategies, and the like, constitutes &#147;Confidential Information&#148; of the Party disclosing the
information (&#147;Disclosing Party&#148;). The purpose of the exchange of the Confidential Information is to
allow the Parties to perform their obligations and responsibilities under this Contract. During the
Contract Term, and for a period of one (1)&nbsp;year following its termination or cancellation, the
Party receiving any Confidential Information, and its employees, attorneys, financial advisors,
officers, directors and shareholders who receive such Confidential Information (hereinafter
referred as to &#147;Receiving Party&#148;) shall not, except with the prior written consent of the
Disclosing Party, use, divulge, disclose or communicate, to any person, firm, corporation or
entity, in any manner whatsoever, the terms of this Contract or any Confidential Information of the
Disclosing Party; provided, however, that each Party may use, divulge, disclose or communicate the
terms of this Contract or Confidential
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 9 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information of the Disclosing Party to its Affiliate which undertakes to keep such information strictly confidential
in accordance with the provisions of this Contract and has a &#147;need to know&#148; such information in
order to perform this Contract. Each Party further agrees to exercise the degree of care to avoid
publication or dissemination of the Confidential Information disclosed to it by the other Party
under this Contract at the level not lower than as it employs with respect to protecting its own
Confidential Information, but no less than a reasonable degree of care in any event. Confidential
Information does not and shall not include information that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;was already known to the Receiving Party at the time such information is disclosed by the other
Party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;was or became publicly known without Receiving Party&#146;s fault;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;was rightfully received from a third party without restriction;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;was independently developed by the Receiving Party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(e)&nbsp;was approved for release by written authorization of the Party disclosing such information
under this Contract; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(f)&nbsp;was required by legal or financial reporting purposes to be disclosed; provided, however, that
the Party being required to disclose shall, if circumstances permit, provide advance notice to the
other Party and shall allow the other Party a reasonable opportunity to oppose such disclosure, if
appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.2 The Receiving Party shall treat such Confidential Information as confidential. The Receiving
Party shall not reproduce or use such Confidential Information except for the purpose of fulfilling
its obligations under this Contract. The Receiving Party shall return all Confidential Information
to the Disclosing Party upon completion of such obligations, or upon the request of the Disclosing
Party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.3 The Receiving Party acknowledges and agrees that the illegal use or disclosure of the
Confidential Information may cause irreparable injury to Disclosing Party for which its loss may
not be adequately remedied by Laws, and that any actual or contemplated breach of this clause will
entitle Disclosing Party to obtain immediate injunctive relief prohibiting such breach, in addition
to any other rights and remedies available to it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.4 The Parties (including the Affiliate procuring Confidential Information under this Contract)
agree that any Party shall not, without obtaining the prior consent from the other Party, issue or
release any announcement, report, declaration, or message about this Contract or any transaction or
clause of this Contract. However, any Party or its Affiliate may disclose the contents of this
Contract according to and within the extent of the compulsive requirements of its local Laws and
applicable Laws. After achieving a mutual consent on the details of the news report, the Parties
may report the signing and contents of this Contract through press.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 10 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. Ownership and Use of Drawings, Documents and Other Items</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All drawings, blueprints, dies, patterns, tools, printing plates and any other items or documents
prepared or constructed by the Seller to develop, produce or manufacture the Products hereunder
shall be the sole property of the Seller, and promptly upon the termination or cancellation of this
Contract, shall be returned to the Seller. The Buyer shall use all drawings, blueprints, dies,
patterns, tools, printing plates and any other items or documents prepared or constructed by Seller
solely for the purposes of this Contract and shall not use any of such items for the benefit of any
third party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Default, Termination and Cancellation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1 Defaulting liability of the Buyer for its failure to purchase or pay
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1.1 If the Buyer fails to purchase the Products from the Seller in the volume as specified
hereunder in a given month, the Seller may in its own discretion resell such Products not purchased
by the Buyer to the Chinese or overseas market, but the Buyer shall pay to the Seller the portion
of the price set forth herein in excess of the reselling price of such Products as well as the
expenses arising in connection with resale. The reselling price under the Seller&#146;s resale contract
shall not be less than 80% of the then current market price and the expenses incurred by resale
shall not be more than 2% of the contract amount of such Products resold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1.2 If the Buyer fails to make the Advance Payment and/or Payment for Goods at the agreed time,
the Buyer shall pay the liquidated damages of 0.05% of the overdue amount per delayed day and this
Contract shall continue to be performed. If the Buyer&#146;s delay in making the Advance Payment exceeds
thirty (30)&nbsp;days (inclusive)&nbsp;and/or its delay in making the Payment for Goods exceeds thirty (30)
days (inclusive), then the Seller may give a notice to the Buyer, requiring the Buyer to remedy its
default within thirty (30)&nbsp;days and the Buyer shall continue to pay the liquidated damages to the
Seller pursuant to the foregoing provision. If the Buyer fails to remedy its default within thirty
(30)&nbsp;days after such notice is issued, the Buyer shall be deemed materially defaulting under this
Contract, unless an event of Force Majeure occurs; the Seller shall be entitled to notify the Buyer
in writing to terminate this Contract unilaterally and termination shall become effective after
such notice is delivered to the Buyer. If the Buyer has remedied its default within the above
notice period, then the Seller shall not be entitled to terminate this Contract. In case of any
default or material default on the part of the Buyer, the Seller shall be entitled not to terminate
this Contract but obtain the remedy under Article&nbsp;8.1.1 while obtaining the liquidated damages
under Article&nbsp;8.1.2 from the Buyer, unless this Contract shall be terminated according to the
effective legal instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1.3 If the Buyer materially defaults and the Seller terminates this Contract, the Buyer shall
undertake the following defaulting liability to the Seller:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;Pay the liquidated damages for overdue payment (up to the date of termination of this Contract)
pursuant to the provisions of Article&nbsp;8.1.2; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;The remaining portion of the Advance Payment as of the date of termination of this Contract
shall belong to the Seller; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;Pay to the Seller the liquidated damages of fifteen percent (15%) of the unperformed portion of
the Total Contract Price of this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2 Defaulting liability of the Seller for its failure or delay in supplying goods
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 11 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2.1 If the Seller fails to replace defective Products with conforming Products within sixty (60)
days as specified in Article&nbsp;3.6.5 or the Products supplied by the Seller (whether manufactured by itself
or purchased by it from a third party) for a given month or Contract Year within the Contract
Supply Term cannot meet the volume of Products demanded by the Buyer under this Contract, the Buyer
may, after notification and giving a thirty-day grace period, in its own discretion purchase the
substitutes of the undersupplied Products from the Chinese or overseas market, but the Seller shall
pay to the Buyer the portion of the purchase price of such substitutes in excess of the price
specified herein as well as the expenses arising in connection with purchase of substitutes. The
price of substitutes under the contract when the Buyer purchases products from a third party shall
not be higher than 120% of the then current market price. The expenses incurred in connection with
purchase of substitutes shall not be more than 2% of the contract amount of such substitutes
purchased. For the avoidance of doubt, the circumstance on the part of the Seller under this
Article&nbsp;8.2.1 will be distinct from and not constitute the default of delayed delivery or
undersupply on the part of the Seller under this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2.2 If the Seller fails to deliver goods at agreed time or undersupplies goods within the
Contract Supply Term, the Buyer shall timely notify the Seller of the details of delayed delivery
or undersupply. The Seller shall pay the liquidated damages of 0.05% of the amount of undelivered
goods per delayed day and this Contract shall continue to be performed. If the Seller&#146;s delay in
delivery exceeds forty-five (45)&nbsp;days (inclusive)&nbsp;upon receipt of the Buyer&#146;s notice about delayed
delivery or undersupply, then the Buyer may give a notice to the Seller, requiring the Seller to
remedy its default within thirty (30)&nbsp;days. If the Seller fails to remedy its default within thirty
(30)&nbsp;days after such notice is issued, the Seller shall be deemed materially defaulting under this
Contract, unless an event of Force Majeure occurs; the Buyer shall be entitled to notify the Seller
in writing to terminate this Contract unilaterally and termination shall become effective after
such notice is delivered to the Seller. If the Seller has remedied its default within the above
notice period, then the Buyer shall be not entitled to terminate this Contract. During the default
period of the Seller&#146;s delay in delivery, the Buyer shall be entitled not to terminate this
Contract but obtain the remedy under Article&nbsp;8.2.1, unless this Contract shall be terminated
according to the effective legal instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2.3 If the Seller materially defaults and the Buyer terminates this Contract, the Seller shall
undertake the following defaulting liability to the Buyer:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;Pay the liquidated damages for delayed delivery (up to the date of termination of this
Contract) pursuant to the provisions of Article&nbsp;8.2.2; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;The remaining portion of the Advance Payment (if any) as of the date of termination of this
Contract shall be refunded in whole to the Buyer at no interest; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;Pay to the Buyer the liquidated damages of seven point five percent (7.5%) of the unperformed
portion of the Total Contract Price of this Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.3 The Parties unanimously agree and acknowledge that at the signing of this Contract, they have
predicted the Losses as may arise from defaults. The calculating method is the same as that for
the liquidated damages. The Parties unanimously agree to waive the right to request an adjustment
if liquidated damages are higher than actual losses as specified under Article&nbsp;114 of the Contract
Law of the People&#146;s Republic of China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4 Termination and Cancellation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4.1 This Contract shall be terminated when the following circumstances occur:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;This Contract expires; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 12 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;upon mutual agreement of the Parties in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4.2 A Party may notify the other Party in writing to terminate this Contract when the following
circumstances occur:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;When the Buyer or the Seller commits a material default under Article&nbsp;8.1 or 8.2, the
non-defaulting party may notify the defaulting party in writing to terminate this Contract
unilaterally; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;If a Party is declared bankrupt, or becomes the object of bankruptcy, liquidation or
dissolution proceedings or is wound up or becomes insolvent, the other Party may notify it in
writing to terminate this Contract unilaterally.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Notices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All notices or communications required to be served hereunder shall be in writing and addressed or
delivered to the representative of the other Party specified herein below. Notices shall be deemed
received (a)&nbsp;upon delivery, when personally delivered; (b)&nbsp;upon receipt of the notice or document,
when sent via registered or certified mail; and (c)&nbsp;on the second business day after delivery, when
sent via express courier service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Representatives of each Party for all communications and correspondence regarding this Contract:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Seller&#146;s representative:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Address: No.66 Yangshan Road, Xuzhou Economic Development Zone, Jiangsu Province
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Attn.: Zhu Guomin
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 3%">Buyer&#146;s representative:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">CSI Cells Co., Ltd.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Address: No.199 Lushan Road, Suzhou New District, Jiangsu Province
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Attn.: Qu Xiaohua
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Buyer or the Seller may change the address or representative designated for delivery and to
receive notice and document hereunder by written notice to the other Party. All correspondences and
communications between the Parties shall be subject to the coordination procedures that shall be
developed jointly by the Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. Language</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Contract is written in Chinese. The Chinese version shall prevail.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. Choice of Laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The validity, interpretation and performance of this Contract shall be governed by the laws of the
People&#146;s Republic of China, without regard to the non-PRC laws and conflict of law provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. Dispute Resolution</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 13 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except as otherwise provided herein, any dispute, controversy or claim arising out of or in
connection with this Contract, or the breach, termination or validity thereof, shall be finally
settled by the China International Economic and Trade Arbitration Commission, Shanghai
Sub-commission (&#147;CIETAC&#148;) under the then effective PRC arbitration rules of CIETAC. The seat of
arbitration shall be Shanghai, and the language used in the arbitral proceedings shall be Chinese
Mandarin.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The arbitral award made and granted by the arbitrators shall be final, binding and incontestable
and may be used as the basis for enforcement in a court having competent jurisdiction. All costs of
arbitration (including, but not limited to, those incurred in the appointment of arbitrators) shall
be apportioned according to the arbitral award.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. Non-waiver</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The failure of either Party to demand strict performance of the provisions hereof or to exercise
any right conferred hereby shall not be construed as a waiver or relinquishment of its rights to
assert or rely on any such provision or right in the future.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. Severability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The invalidity of any provision of this Contract shall not affect the validity of any other
provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. Assignment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Without the prior written consent of the other Party, neither the Buyer nor the Seller may assign
any of its obligations hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. Survival</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All the remedies and confidentiality rights and obligations herein contained shall survive upon the
termination or cancellation of this Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. Amendments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No amendment, modification or supplement to or waiver of any provision of this Contract shall be
valid unless reduced to writing and executed by the Buyer and the Seller.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>18. Entirety</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Contract and the exhibits hereto constitute the entire agreement between the Parties with
respect to the subject matter hereof and supersede any prior contract or understanding between the
Parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>19. Effectiveness</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Contract shall become effective as of the date when it is formally signed and sealed by the
duly authorized representatives of the Parties.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The
texts of this Contract end here; signature page follows)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 14 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Signature page)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt"><B>Seller: Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(corporate seal)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;with corporate seal of Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Signature of authorized representative)&nbsp;/s/
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 26pt"><B>Buyer: CSI Cells Co., Ltd.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(corporate seal)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;with corporate seal of CSI Cells Co., Ltd.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Signature of authorized representative)&nbsp;/s/
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 15 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;A<BR>
Specifications and Quality Standard of Solar Silicon Wafer Products</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Specifications of 125X125mm mono-crystalline silicon wafers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mono-crystalline wafer: conductive type P (dopant element is B); orientation:
&#060;100&#062;&#177;3<SUP style="font-size: 85%; vertical-align: text-top">0</SUP>; resistivity, 0.5~3, 3~6 &#937;<FONT face="Symbol">&#183;</FONT>
cm; radial resistivity variation (RRV)
of a singular wafer, &#060;25%; width of opposite edge, 125 &#177;0,5mm; length of opposite angle, 150 &#177;1mm;
length of arc, 27.5~30.80mm; thickness, 200 &#177;20 (TTV<FONT style="font-family: Symbol">&#163;</FONT>40<FONT face="Symbol">&#109;</FONT>m); angle of square,
90&#177;0.5<SUP style="font-size: 85%; vertical-align: text-top">0</SUP>; bending, <FONT style="font-family: Symbol">&#163;</FONT>75<FONT face="Symbol">&#109;</FONT>m; surface saw mark,
&#060;20<FONT face="Symbol">&#109;</FONT>m, no cavity, no perforation, no
stain, no stress; less than two broken edges not more than 1/3 of side thickness, with a length of
less than 0.5mm and a surface-inward width of less than 0.2mm per piece. Life time, &#062;10<FONT face="Symbol">&#109;</FONT>s;
carbon content, &#060;1X10<SUP style="font-size: 85%; vertical-align: text-top">17</SUP>; oxygen content, &#060;1X10<SUP style="font-size: 85%; vertical-align: text-top">18</SUP>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Note: the Parties agree that from 2010 when the Products begin to be supplied, the Parties will
negotiate about the reduction of product thickness in this Exhibit every 12&nbsp;months or after the
Buyer releases the upgraded technical standard of its products. The Parties shall agree on product
thickness depending on the technology upgrading on the then current market. If the Parties fail to
agree on product thickness, they shall continue to proceed with this Exhibit.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 16 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;B</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>Payment Schedule of Advance Payment</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Payment amount of advance payment (RMB)</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Payment date of advance payment</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Unit: yuan</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Before September&nbsp;15, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">[****]*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Before November&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">[****]*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Before July&nbsp;1, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">[****]*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Before April&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">[****]*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total amount of advance payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">[****]*</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>



<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
This portion of the Solar Silicon Wafer Supply Contract has been omitted and filed separately with the Securities and Exchange Commission, pursuant to Rule 24b-2.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 17 of 21<!-- /Folio -->
</div>




</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;C<BR>
Product Prices, Volumes and Delivery Schedule</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Supply Volumes and Prices for Long-term Contract
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Unit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Volume</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Piece</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,800,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">750,800,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax-included unit
price (RMB)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Yuan/piece</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax-included total
price (RMB)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Yuan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">[****]*</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">Notes:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Tax-included unit price and tax-included total price are subject to a value-added tax rate of
17% and shall be adjusted accordingly if value-added tax rate is adjusted.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Before the 25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of each month, the Buyer shall make the full Payment for Goods
for next month to the Seller.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>In December of each year, the Parties shall agree upon the monthly supply volume of next year
depending on the Seller&#146;s productive capacity and production plan as well as the Buyer&#146;s
purchase capacity. Otherwise, the monthly supply volume of next year will be subject to the
12-month average monthly volume of current year. Current month&#146;s Payment for Goods is the
value from the tax-included unit price of current year multiplying the monthly Product supply
volume of current month.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>



<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    This portion of the Solar Silicon Wafer Supply Contract has been omitted and filed separately with the Securities and Exchange Commission, pursuant to Rule 24b-2.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 18 of 21<!-- /Folio -->
</DIV>





</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;D</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>List of Affiliate of Parties Participating in this Contract and Format of Letter of Undertaking</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>List of Affiliate</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">List of Seller&#146;s Affiliate:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 26pt">List of Buyer&#146;s Affiliate:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Central Solar Power Co., Ltd.<BR>
Changshu CSI Advanced Solar Inc.

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 19 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Letter of Undertaking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our company &#091;Changshu CSI Advanced Solar Inc.&#093; knows that &#091;Jiangsu Zhongneng Polysilicon Technology
Development Co., Ltd.&#093; and &#091;CSI Cells Co., Ltd.&#093; entered into the Silicon Wafer Supply Contract
(hereinafter referred to as &#147;the Contract&#148;) on &#091;August&#093;&nbsp;&#091;20&#093;, 2008. As the Buyer&#146;s affiliate
meeting the conditions stipulated in the Contract, our company now applies to participate in the
Contract as the buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company hereby irrevocably undertakes that if our company participates in the Contract as
the buyer (&#147;our party&#148;), our company shall be bound by the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company knows, understands and agrees to be bound by, all the provisions of the Contract
and its exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company and our party&#146;s affiliate participating in the Contract will jointly and severally
undertake the obligations and responsibilities under the Contract. Our company has the right to
receive, inspect, use and own the goods under the Contract and acknowledges that if any affiliate
of the other party has performed the obligations under the Contract, it will be deemed that the
other party has performed the contractual obligations to our party. When our party acts as the
buyer, the Seller shall issue the invoice to our party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our company no longer meets the conditions for our party&#146;s affiliate under the Contract,
our company will no longer enjoy the rights under the Contract, but not be exempt from the joint
and several responsibility on our part under the Contract occurring before our company no longer
meets the conditions for affiliate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 30%">Undertaking party (seal): Changshu CSI Advanced Solar Inc.<BR>
Legal representative or authorized representative (signature):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 30%">August&nbsp;20, 2008
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 20 of 21<!-- /Folio -->
</DIV>
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Letter of Undertaking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our company &#091;CSI Central Solar Power Co., Ltd.&#093; knows that &#091;Jiangsu Zhongneng Polysilicon
Technology Development Co., Ltd.&#093; and &#091;CSI Cells Co., Ltd.&#093; entered into the Silicon Wafer Supply
Contract (hereinafter referred to as &#147;the Contract&#148;) on &#091;August&#093; &#091;20&#093;, 2008. As the Buyer&#146;s
affiliate meeting the conditions stipulated in the Contract, our company now applies to participate
in the Contract as the buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company hereby irrevocably undertakes that if our company participates in the Contract as
the buyer (&#147;our party&#148;), our company shall be bound by the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company knows, understands and agrees to be bound by, all the provisions of the Contract
and its exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company and our party&#146;s affiliate participating in the Contract will jointly and severally
undertake the obligations and responsibilities under the Contract. Our company has the right to
receive, inspect, use and own the goods under the Contract and acknowledges that if any affiliate
of the other party has performed the obligations under the Contract, it will be deemed that the
other party has performed the contractual obligations to our party. When our party acts as the
buyer, the Seller shall issue the invoice to our party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our company no longer meets the conditions for our party&#146;s affiliate under the Contract,
our company will no longer enjoy the rights under the Contract, but not be exempt from the joint
and several responsibility on our part under the Contract occurring before our company no longer
meets the conditions for affiliate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 30%">Undertaking party (seal): CSI Central Solar Power Co., Ltd.<br>
Legal representative or authorized representative (signature):<br>
/s/
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 30%">August&nbsp;20, 2008
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(The contents of this page end here)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">CSI-ZN80818-B
</DIV>

<DIV align="center" style="font-size: 10pt"><!-- Folio -->Page 21 of 21<!-- /Folio -->
</DIV>
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.4
<SEQUENCE>5
<FILENAME>h03379exv4w4.htm
<DESCRIPTION>EX-4.4
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT&nbsp;4.4</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Letterhead of Canadian Solar Inc.&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 36pt"><B>Sales Contract</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>July. 15th, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">Contract No.: CSI-PRO080715
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">entered by and between
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>Canadian Solar Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">675 Cochrane Drive<BR>
East Tower 6th Floor<BR>
Markham, Ontario L3R 0B8<BR>
Canada

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(herein after referred to as the &#147;VENDOR&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Solpower GmbH</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Schubertstr. 17<BR>
D-88214 Ravensburg

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(herein after referred to as the &#147;PURCHASER&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The orders can only be from:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SOLPOWER GmbH</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Schubertstrasse 17<BR>
D-88214 Ravensburg

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 1 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recitals</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR is registered under Federal Business Act of Canada and manufactures crystalline
photovoltaic panels at its wholly-owned manufacturing plants in P.R. China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The PURCHASER is active in the photovoltaic market. Among other business activities, the PURCHASER
distributes solar modules and carries out various solar power plant projects in Germany and other
parts in Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The PURCHASER has a need for certain Mono/Poly Crystalline PV Modules for the Purchaser&#146;s
project(s) (hereinafter referred to as &#147;module&#148; or &#147;modules&#148;), and desires to procure said modules
from the VENDOR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR desires to deliver and sell said modules to the PURCHASER.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NOW, THEREFORE, </B>the Parties agree as follows:
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>I.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Type and Quantity of Modules, Prices, Delivery Time</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Type and quantities of the modules which the PURCHASER needs, the applicable specification, the
prices, and the desired time of delivery which is set forth in EXHIBIT I to this Agreement.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>II.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Labelling</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The product labels and trade marks of each module shall state the manufacturers&#146; name, each
module&#146;s serial number, indicate the nominal output as well as current and voltage characteristics
at standard test conditions (STC)&nbsp;of the type of module concerned and bear a clear warning against
hazardous behaviour.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The PURCHASER shall not, without the prior written consent of the VENDOR, alter or make any
addition to the labelling or packaging of the products displaying the Trade Marks, and shall not
alter, deface or remove in any manner any reference to the Trade Marks, any reference to the VENDOR
or any other name attached or affixed to the products or their packaging or labelling.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 2 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>III.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Port of Shipment / Port of Destination</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The port of shipment shall be Shanghai, P.R. China or any other Chinese ports determined by the
VENDOR from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The port of destination will be the major Germany ports (Hamburg). The PURCHASER shall timely
notify the VENDOR of the port of destination for every single shipment.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>IV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Packing/ Shipping Mark</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The packing shall be in accordance with the international packing standards (no wood package,
for example) and suitable for long distance ocean shipping freight transportation and shall be well
protected against moisture and shocks as well as disinfected. The well-packed PV-modules shall be
shipped in containers. The relevant service and operation instructions shall be enclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR shall mark on each package with fadeless paint the package number, gross weight, net
weight, measurement of the package as well as of each single module, the serial number and wattage
of each single module in the package concerned, the name of the module type, the port of
destination and the wordings or imaged indications representing: &#147;Keep Away from Moisture&#148;, &#147;Handle
with Care&#148;... etc.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>V.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>TITLE AND RISK OF LOSS/INSURANCE</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;Risks of loss or damage, as well as any additional costs due to events occurring after the time
of delivery shall pass to the PURCHASER on delivery in accordance with C.I.F. Incoterms 2000:
However, title to the products per specified delivery shall pass to the PURCHASER only after
payment for those particular products has been received in full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR also has to procure marine insurance against the Purchaser&#146;s risk of loss of or
damage to the products during the carriage only on minimum insurance coverage in accordance with
C.I.F Incoterms 2000.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 3 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;The PURCHASER shall at its own cost maintain insurance coverage against all risks which would
normally be insured against by a prudent businessman in respect of products supplied to it
commencing from the time when the products surpass the rail of the carrying vessel and extending
until such time as title in the products passes to the PURCHASER in accordance with Par.1 above.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Terms of Payment</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The payment shall be made
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by 15% down payment, Via T/T, within 5 working days after the presentation by
fax and/or email of the Order Confirmation executed by the VENDOR; balance by T/T
within 21&nbsp;days against the presentation of the shipping documents.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Late Payment: Interest shall be chargeable on any amounts overdue at the rate
of 0.03% per day to run from the due date for payment until receipt by the VENDOR of
the full amount whether or not after judgment and without prejudice to any other right
or remedy of the VENDOR.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Documents</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR shall send the following documents immediately to the PURCHASER via an international
bank for the respective shipment with L/C terms:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Full set (including 3 originals) of shipped on board Bill of Ladings made out
to the Contract and blank endorsed and consigned to the PURCHASER, marked &#147;Freight
Prepaid&#148;.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Signed Commercial Invoice in 2 originals indicating contract number issued by
the VENDOR. Packing list (including 3 originals) with indication of weights,
measurements and quantity issued by the VENDOR.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Flash reports stating the module type, serial number, lsc, Voc, Imp, Vmp, Pmax,
and the date of testing by Fax or E-mail to PURCHASER</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->Page 4 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Within 5 working days after receiving the shipping documents from the Vendor&#146;s shipping
forwarder, the VENDOR has to fax or e-mail or courier one copy of the Bill of Lading and one
copy of the Commercial Invoice to the PURCHASER. The number of the documents and their
contents shall be complete and correct. If the PURCHASER fails to pass the customs and to
take over the products in time due to the VENDOR not having provided the documents as
specified above, all losses caused by the Vendor&#146;s fault shall be borne by the VENDOR.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Shipments</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C.I.F. German Hamburg port (Incoterms 2000).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise agreed in writing between the Parties, Cost Insurance and Freight Incoterms 2000
shall apply to this Agreement. If there is any conflict between such Incoterms and the terms of
this Agreement then the terms of this Agreement shall prevail.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The particulars of the shipment including the name of the vessel, date, quantity and value of
shipment are to be e-mailed or faxed to the PURCHASER within 2 working days after such information
received from the Vendor&#146;s shipping forwarder so that the PURCHASER can arrange for the Customs
Clearance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Partial shipment shall be allowed, but only in full containers. Trans-shipment shall be not
allowed.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>IX.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Warranties</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR guarantees that the products shall be made of qualified materials with first class
workmanship, that they shall be brand new and unused and that they shall comply in all respects
with the quality and specification stipulated in this Agreement including its attachments and that
they shall be in conformity with the relevant technical data.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 5 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The
VENDOR guarantees that the modules are manufactured according to IEC
61215 and T&#220;V Safety
Class&nbsp;II, or IEC 61730 standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, the VENDOR shall issue a written warranty for his products with the following
content:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Product Quality Warranty stating that the products shall be free from defects
in material and workmanship for two years. If, within 24&nbsp;months counting from the date
of receipt of the product at destination, damages or defects occur in the course of
operation because of inferior quality, bad workmanship or the use of inferior materials
in the manufacturing process, the VENDOR shall, upon notice by the PURCHASER with
authentic and sufficient evidence, immediately repair, replace, or make adjustments to
the default products.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Power Performance Warranty stating that the power degradation of the
products&#146; originally rated power as determined under Standard Test Conditions
(1000W/m2, 25&#176;C cell temperature, AM=1.5) shall not be greater than 10% after 10&nbsp;years
and 20% after 25&nbsp;years.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;&nbsp;&nbsp;&nbsp;This warranty shall lead to the consequence that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if, within 24&nbsp;months counting from the date of receipt of the product at
destination, damages or defects occur in the course of Operation because of inferior
quality, bad workmanship or the use of inferior materials in the manufacturing process,
the VENDOR shall, upon notice by the PURCHASER with authentic and sufficient evidence,
immediately repair, replace the defective products. Costs for transportation of the
default and replacing modules and installation costs shall be borne by the VENDOR.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->Page 6 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if it is determined that under Standard Test Conditions (STC, 1000
W/m<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>, 25&#176;C, AM=1.5) products supplied by the VENDOR to the PURCHASER do not
meet the warranted percentage of its specified power output during the warranty term,
the VENDOR shall execute the remedy as stipulated in its warranty statement.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;&nbsp;&nbsp;&nbsp;The warranties shall not cover damages, malfunctions or service failures caused by:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Symbol">&#045;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>errors made during installation, operation or maintenance,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Symbol">&#045;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>abuse or misuse,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Symbol">&#045;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>power failure surges, lightning, fire or flood,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Symbol">&#045;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actions of third parties and other events or accidents outside the reasonable control and not arising under normal operating conditions.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Where inspection of the defective product indicates with sufficient evidence of improper
installation, operation or maintenance, the PURCHASER shall reimburse VENDOR its costs for
the replacement or repaired the product including costs of examination.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>X.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Effective Date, Duration, Termination</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall come into effect after both parties have signed it (&#147;Effective date&#148;), and
shall initially remain in effect until Dec. 31st, 2009 (&#147;Expiration Date&#148;), unless the Parties
agree on an extension prior to the Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;If the PURCHASER becomes insolvent or bankrupt or breaches a provision of this Agreement and
does not remedy such breach within thirty (30)&nbsp;calendar days of written notice by the VENDOR, the
VENDOR may terminate this Agreement in whole or in part effective thirty (30)&nbsp;calendar days after
said notice was given.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 7 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the VENDOR becomes bankrupt or insolvent or breaches a material provision hereof and does not
commence to remedy such breach within thirty (30)&nbsp;calendar days of being given written notice by
the PURCHASER, the PURCHASER may terminate this Agreement in whole or in part effective thirty (30)
calendar days after such notice was given.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(3)&nbsp;&nbsp;&nbsp;&nbsp;In regard to any orders already been made by PURCHASER before the expiration or termination of
this Agreement, this Agreement shall fully remain in effect beyond the respective expiration or
termination date. The foregoing shall not apply, if the Agreement is terminated by VENDOR due to
Purchasers bankruptcy or insolvency.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Claims</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;Within 15&nbsp;days after the arrival of the products at final CIF Port destination should the
specification, quantity or appearance of the modules be found not to be in conformity with the
stipulations of this Agreement, except for those claims for which the insurance company or the
owners of the vessel are liable, the PURCHASER shall, based on the Inspection Certificate issued by
an office of the Authorised Administration of Import and Export Commodities Inspection of the
importing country, have the right to claim replacement with new products (in case of total
failure), or financial compensation limited to the cost of the products in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR, upon verification of the Purchaser&#146;s claim, shall be responsible for complete or
partial replacement of the commodity or shall devaluate the products according to the state of
defects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR shall not be held responsible for the delay in shipment or non-delivery of the
products, or for failure to manufacture, deliver or perform due to the acts of the PURCHASER
including failure of the PURCHASER to supply to the VENDOR in a timely manner with all necessary
information, required sample parts or other specified items required by VENDOR to design,
manufacture and test the product.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 8 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Force Majeure</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR shall not be held responsible for the delay in shipment or non-delivery of the due to
Force Majeure, such as war, severe fire, flood, typhoon, earthquake, labour strike or riots which
might occur during the process of manufacturing or in the course of transportation, loading or
transit, or such Force Majeure at any key suppliers of the VENDOR; The VENDOR shall inform the
PURCHASER immediately of the occurrence of an instant mentioned above and within ten days
thereafter, the VENDOR shall send by fax or e-mail or courier to the PURCHASER for their acceptance
a certificate of the accident issued by the relevant government authority where the incident
occurred as evidence thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under such circumstances, the VENDOR, however, shall still be under the obligation of taking all
necessary measures to hasten the delivery of the products.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Dispute Settlement/Arbitration Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;If a dispute of any kind whatsoever arises between the Parties in conjunction with this
Agreement, the Parties shall attempt to settle such dispute amicably. In any disputes of the
measured flash data, the parties agree to accept Freudhoefer Institute, Freiberg, Germany as
reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;Provided the Parties are not able to agree upon an amicable settlement within a reasonable time
and no later than thirty (30)&nbsp;calendar days after initiation of settlement discussions, all
disputes arising out of or in conjunction with this Agreement, - and/or in conjunction with
subsequent agreements pursuant to Clause I, Paragraph (2)&nbsp;above - including disputes over their
construction or validity, and regardless of their legal nature, shall be settled by an arbitration
court in accordance with the Arbitration Rules of Conciliation and Arbitration of the ICC
(International Chamber of Commerce) without recourse to the ordinary courts of law. Such
arbitration shall be final and binding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;The place of arbitration shall be Frankfurt, Germany, or Toronto, Ontario, Canada. The Party
bringing the initial claim(s) in dispute shall have the right to choose between the aforementioned
places
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 9 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;&nbsp;&nbsp;&nbsp;The language of the arbitration proceedings shall be English.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;&nbsp;&nbsp;&nbsp;Without detriment to the foregoing, the Parties shall not be precluded from initiating interim
measures via the ordinary courts of law.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XIV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Choice-of-Law Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement and all disputes arising out of, or in conjunction with this Agreement, -and/or in
conjunction with subsequent agreements pursuant to Clause I,
Paragraph (2)&nbsp;above - including
disputes over its validity and construction, shall be exclusively governed by the laws of Canada.
Conflict of laws rules shall not apply.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Taxes and Duties</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All taxes and duties in connection with the execution of this Agreement shall be paid as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Levied by the Chinese government shall be borne by the VENDOR.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Levied by the government of the importing country shall be borne by the
PURCHASER.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Exclusivity /Non- Competition Clause/Confidentiality</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR shall regard the PURCHASER as first priority client and guarantee the PURCHASER that
the VENDOR shall not sell to or compete against the PURCHASER for a list of clients presented by
the PURCHASER and attached hereto. This list and non compete agreement shall be for existing
bonifide current clients of the PURCHASER which are active and have purchased modules for projects
within the current and previous year. This shall exclude clients that may also be purchasing from
the VENDOR unknowingly to both PURCHASER and VENDOR and that are also current clients of the
VENDOR. This covenant not to compete shall remain in effect as long as this Agreement also remains
in effect.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 10 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge and agree that during the term of this Agreement that they may gain
access to and become acquainted with information critical to the other Party&#146;s business, such as
business and trade secrets and/or information, trade and business secrets pertaining to other
companies affiliated with that Party. The Parties agree that they shall not disclose any such
information, business or trade secrets, neither directly nor indirectly, to any other person or
legal entity. This covenant to keep confidential shall remain in force after termination of this
Agreement to the full extent permitted by applicable law.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>CSI Standard Warranty Statement and Conditions of Sales</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI standard warranty statement and conditions of sales should apply to any issues not specifically
covered by this agreement.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Entire Agreement and Amendments</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1&nbsp;&nbsp;&nbsp;&nbsp;In respect of the Sales Master Contract and without consideration of the subsequent Purchase
Order or Conditions of Sale for each separate sale, this Agreement including EXHIBIT 1 shall
constitute the entire Agreement between the Parties with regard to its subject matter. This
Agreement shall supersede all other prior oral or written agreements between the Parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2&nbsp;&nbsp;&nbsp;&nbsp;Any amendments to, or modifications of this Agreement shall become effective only when in writing
and signed by the Parties
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVIIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Severability Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event any provision of this Agreement proves unenforceable or invalid for whatever reason,
the remaining provisions of this Agreement shall be unaffected by such holding, but remain in full
force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS THEREOF, this Agreement is made in English and signed by both Parties in two original
copies, each party holds one copy. This Agreement is effective from the date both Parties have
signed it.</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 11 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">VALENCIA, SPAIN
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September&nbsp;1, 2008
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Gregory Spanoudakis</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left">Location, Date, Stamp and Signature of Canadian Solar Inc.</TD>
</TR>
<TR valign="bottom" style="line-height: 48pt"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September&nbsp;1, 2008
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Dr.&nbsp;Joachim von Bergwelt</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left">Location, Date, Stamp and Signature of SOLPOWER GmbH</TD>
</TR>
<TR valign="bottom" style="line-height: 24pt"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 12 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;I</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Commodity, Specification, and Delivery Schedule for the current Project:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Schedule</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Commodity &#038; Specification</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Quantity (MW)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CS5A-160/170/180M
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="'Times New Roman',times,serif">&#128;</FONT>&nbsp;[****]*/Wp, CIF<br>Hamburg</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Total</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>[****]*</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="'Times New Roman',times,serif">&#128;</FONT></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Schedule</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Commodity &#038; Specification</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Quantity (MW)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CS6P-200/210/220/230/240P
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="'Times New Roman',times,serif">&#128;</FONT>&nbsp;[****]*/Wp, CIF<BR>Hamburg</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Total</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>[****]*</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="'Times New Roman',times,serif">&#128;</FONT></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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 style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">This portion of the Sales Contract has been omitted and filed separately with the Securities and
Exchange Commission, pursuant to Rule 24b-2.
    </TD>
</TR>



</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 13 of 14<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Schedule</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Commodity &#038; Specification</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Quantity (MW)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ecosense-Module<BR>CS6A-150/160P
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><FONT face="'Times New Roman',times,serif">&#128;</FONT>&nbsp;[****]*/Wp, CIF<BR>Hamburg</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">09.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">[****]*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Total</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>[****]*</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="'Times New Roman',times,serif">&#128;</FONT></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>Note:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>In Q1 the Vendor will carry a credit for the difference between 2009 and 2008 pricing multiplied by watts delivered only in the month of December&nbsp;2008.<BR>
The Q2 delivery will be reviewed at March&nbsp;15</B><SUP style="font-size: 85%; vertical-align: text-top"><B>th</B></SUP><B>, 2009<BR>
The Q3 delivery will be reviewed at June&nbsp;15</B><SUP style="font-size: 85%; vertical-align: text-top"><B>th</B></SUP><B>, 2009<BR>
The Q4 delivery will be reviewed at September&nbsp;15</B><SUP style="font-size: 85%; vertical-align: text-top"><B>th</B></SUP><B>, 2009<BR>
Each month delivery quantity will be confirmed in the end of former month.</B>

</DIV>


<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    This portion of the Sales Contract has been omitted and filed
separately with the Securities and Exchange Commission, pursuant to
Rule 24b-2.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 14 of 14<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.5
<SEQUENCE>6
<FILENAME>h03379exv4w5.htm
<DESCRIPTION>EX-4.5
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT&nbsp;4.5</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Letterhead of Canadian Solar Inc.&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 36pt"><B>Sales Contract</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>September 1st, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">Contract No.: CSI-IIG080715
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">entered by and between
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>Canadian Solar Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">675 Cochrane Drive<BR>
East Tower 6th Floor<BR>
Markham, Ontario L3R 0B8<BR>
Canada

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(herein after referred to as the &#147;VENDOR&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ILIOTEC Solar GmbH</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">An der Irler H&#246;he 3a<BR>
93055 Regensburg

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Tel: &#043;49 941 29770-0
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Fax:&#043;49 941 29770-23100
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(hereinafter referred to as the &#147;PURCHASER&#148;)
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->Page 1 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Recitals</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR is registered under Federal Business Act of Canada and manufactures crystalline
photovoltaic panels at its wholly-owned manufacturing plants in P.R. China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The PURCHASER is active in the photovoltaic market. Among other business activities, the PURCHASER
distributes solar modules and carries out various solar power plant projects in Germany and other
parts in Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The PURCHASER has a need for certain Mono/Poly Crystalline PV Modules for the Purchaser&#146;s
project(s) (hereinafter referred to as &#147;module&#148; or &#147;modules&#148;), and desires to procure said modules
from the VENDOR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR desires to deliver and sell said modules to the PURCHASER.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NOW, THEREFORE, </B>the Parties agree as follows:
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>I.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Type and Quantity of Modules, Prices, Delivery Time</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Type and quantities of the modules which the PURCHASER needs, the applicable specification, the
prices, and the desired time of delivery which is set forth in EXHIBIT I to this Agreement.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>II.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Labelling</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The product labels and trade marks of each module shall state the manufacturers&#146; name, each
module&#146;s serial number, indicate the nominal output as well as current and voltage characteristics
at standard test conditions (STC)&nbsp;of the type of module concerned and bear a clear warning against
hazardous behaviour. In addition, all existing certifications, incl., but not limited to IEC 61215,
Protection Class&nbsp;II and CE Mark, shall be printed on the label.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 2 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The PURCHASER shall not, without the prior written consent of the VENDOR, alter or make any
addition to the labelling or packaging of the products displaying the Trade Marks, and shall not
alter, deface or remove in any manner any reference to the Trade Marks, any reference to the VENDOR
or any other name attached or affixed to the products or their packaging or labelling.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>III.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Port of Shipment / Port of Destination</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The port of shipment shall be Shanghai, P.R. China or any other Chinese ports determined by the
VENDOR from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The port of destination will be the major German port (Hamburg), or any other major European port
(e.g. Antwerp, Belgium). The PURCHASER shall timely notify the VENDOR of the port of destination
for every single shipment.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>IV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Packing/ Shipping Mark</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The packing shalt be in accordance with the international packing standards (no wood package,
for example) and suitable for long distance ocean shipping freight transportation and shall be well
protected against moisture and shocks as well as disinfected. The well-packed PV-modules shall be
shipped in containers. The relevant service and operation instructions shall be enclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR shall mark on each package with fadeless paint the package number, gross weight, net
weight, measurement of the package as well as of each single module, the serial number and wattage
of each single module in the package concerned, the name of the module type, the port of
destination and the wordings or imaged indications representing: &#147;Keep Away from Moisture&#148;, &#147;Handle
with Care&#148;... etc.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>V.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>TITLE AND RISK OF LOSS/INSURANCE</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;Risks of loss or damage, as well as any additional costs due to events occurring after the time
of delivery shall pass to the PURCHASER on delivery in accordance with C.I.F. Incoterms 2000:
However, title to the products per specified delivery shall pass to the PURCHASER only after
payment for those particular products has been received in full.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 3 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR also has to procure marine insurance against the PURCHASER&#146;s risk of loss of or
damage to the products during the carriage only on minimum insurance coverage in accordance with
C.I.F Incoterms 2000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;The PURCHASER shall at its own cost maintain insurance coverage against all risks which would
normally be insured against by a prudent businessman in respect of products supplied to it
commencing from the time when the products surpass the rail of the carrying vessel and extending
until such time as title in the products passes to the PURCHASER in accordance with Par.1 above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;&nbsp;&nbsp;&nbsp;In case, the PURCHASER chooses F.O.B. Incoterm 2000, he shall instruct the VENDOR at least two
(2)&nbsp;weeks prior to the shipment. He will then be entitled of a price reduction of EURO 0, 03/W/p to
compensate for the freight and insurance cost.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Terms of Payment</B></TD>
</TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The payment shall be made T/T payment 10&nbsp;days prior to arrival at the port of destination against
the presentation of the shipping documents.</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Currency Fluctuation: Furthermore all pricing shall be benchmarked against an agreed currency
exchange rate upon conclusion of the each individual Purchase Order. Should the exchange rate
between the Euro and US Dollar fluctuate above or below a pre-established and agreed-upon 3% of
established base (1 Euro=1.50USD), then the selling price shall be adjusted to reflect the
corresponding rate change. <B>&#091;NOT APPLICABLE&#093;</B>


</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Late Payment: Interest shall be chargeable on any amounts overdue at the rate of 0.06% per day
to run from the due date for payment until receipt by the VENDOR of the full amount whether or not
after judgment and without prejudice to any other right or remedy of
the VENDOR.</TD>
</TR>

</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 4 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Documents</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR shall send the following documents immediately to the PURCHASER (in case of C.I.F.
Incoterm 2000), or the Assigned Logistic Partner (in case of F.O.B. Incoterm 2000):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Full set (including 3 originals) of shipped on board Bill of Ladings made out
to the Contract and blank endorsed and consigned to the PURCHASER, marked &#147;Freight
Prepaid&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Signed Commercial Invoice in 3 originals indicating contract number issued by
the VENDOR. Packing list (including 3 originals) with indication of weights,
measurements and quantity issued by the VENDOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Flash reports stating the module type, serial number, lsc, Voc, Imp, Vmp, Pmax,
and the date of testing by Fax or E-mail to PURCHASER</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Within 5 working days after receiving the shipping documents from the VENDOR&#146;s shipping
forwarder, the VENDOR has to fax or e-mail or courier one copy of the Bill of Lading and one
copy of the Commercial Invoice to the PURCHASER.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The number of the documents and their contents shall be complete and correct. If the
PURCHASER fails to pass the customs and to take over the products in time due to the VENDOR
not having provided the documents as specified above, all losses caused by the VENDOR&#146;s
fault shall be borne by the VENDOR.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Shipments</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C.I.F. German Hamburg port (Incoterms 2000) or any other major European port (e.g. Antwerp,
Belgium).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise agreed in writing between the Parties, Cost Insurance and Freight Incoterms 2000
shall apply to this Agreement. If there is any conflict between such Incoterms and the terms of
this Agreement then the terms of this Agreement shall prevail.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 5 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The particulars of the shipment including the name of the vessel, date, quantity and value of
shipment are to be e-mailed or faxed to the PURCHASER within 2 working days after such information
received from the VENDOR&#146;s shipping forwarder so that the PURCHASER can arrange for the Customs
Clearance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Partial shipment shall be allowed, but only in full containers. Trans-shipment shall be not
allowed.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>IX.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Warranties</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR guarantees that the products shall be made of qualified materials with first class
workmanship, that they shall be brand new and unused and that they shall comply in all respects
with the quality and specification stipulated in this Agreement including its attachments and that
they shall be in conformity with the relevant technical data.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR guarantees that the modules are manufactured according to IEC 61215, ed. 2, T&#220;V
Safety Class&nbsp;II, or IEC 61730 standards, and the CE Mark.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, the VENDOR shall issue a written warranty for his products with the following
content:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Product Quality Warranty stating that the products shall be free from defects
in material and workmanship for two years. lf, within 24&nbsp;months counting from the date
of installation, damages or defects occur in the course of operation because of
inferior quality, bad workmanship or the use of inferior materials in the manufacturing
process, the VENDOR shall, upon notice by the PURCHASER with authentic and sufficient
evidence, immediately repair, replace, or make adjustments to the default products.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Power Performance Warranty stating that the power degradation of the
products&#146; originally rated power as determined under Standard Test Conditions
(1000W/m2, 25&#176;C cell temperature, AM=1.5) shall not be greater than 10% after 10&nbsp;years
and 20% after 25&nbsp;years.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 6 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;&nbsp;&nbsp;&nbsp;This warranty shall lead to the consequence that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if, within 24&nbsp;months counting from the date of installation, damages or defects
occur in the course of Operation because of inferior quality, bad workmanship or the
use of inferior materials in the manufacturing process, the VENDOR shall, upon notice
by the PURCHASER with authentic and sufficient evidence, immediately repair, replace
the defective products. Costs for transportation of the default and replacing modules
and installation costs shall be borne by the VENDOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if it is determined that under Standard Test Conditions (STC, 1000
W/m<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>, 25&#176;C, AM=1.5) products supplied by the VENDOR to the PURCHASER do not
meet the warranted percentage of its specified power output during the warranty term,
the VENDOR shall execute the remedy as stipulated in its warranty statement.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;&nbsp;&nbsp;&nbsp;The warranties shall not cover damages, malfunctions or service failures caused by:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Errors made during installation, operation or maintenance,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Abuse or misuse,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Power failure surges, lightning, fire or flood,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Actions of third parties and other events or accidents outside the reasonable
control and not arising under normal operating conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where inspection of the defective product indicates with sufficient evidence of
improper installation, operation or maintenance, the PURCHASER shall reimburse
VENDOR its costs for the replacement or repaired the product including costs of
examination.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->Page 7 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>X.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Effective Date, Duration, Termination</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall come into effect after both parties have signed it (&#147;Effective date&#148;), and
shall initially remain in effect until Dec. 31st, 2009 (&#147;Expiration Date&#148;), unless the Parties
agree on an extension prior to the Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;If the PURCHASER becomes insolvent or bankrupt or breaches a provision of this Agreement and
does not remedy such breach within thirty (30)&nbsp;calendar days of written notice by the VENDOR, the
VENDOR may terminate this Agreement in whole or in part effective thirty (30)&nbsp;calendar days after
said notice was given. If the VENDOR becomes bankrupt or insolvent or breaches a material provision
hereof and does not commence to remedy such breach within thirty (30)&nbsp;calendar days of being given
written notice by the PURCHASER, the PURCHASER may terminate this Agreement in whole or in part
effective thirty (30)&nbsp;calendar days after such notice was given.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(3)&nbsp;&nbsp;&nbsp;&nbsp;In regard to any orders already been made by PURCHASER before the expiration or termination of
this Agreement, this Agreement shall fully remain in effect beyond the respective expiration or
termination date. The foregoing shall not apply, if the Agreement is terminated by VENDOR due to
PURCHASER&#146;s bankruptcy or insolvency.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Claims</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;Within 30&nbsp;days after the arrival of the products at final CIF Port destination should the
specification, quantity or appearance of the modules be found not to be in conformity with the
stipulations of this Agreement, except for those claims for which the insurance company or the
owners of the vessel are liable, the PURCHASER shall, based on the Inspection Certificate issued by
an office of the Authorised Administration of Import and Export Commodities Inspection of the
importing country, have the right to claim replacement with new products (in case of total
failure), or financial compensation limited to the cost of the products in question.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 8 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR, upon verification of the PURCHASER&#146;s claim, shall be responsible for complete or
partial replacement of the commodity or shall devaluate the products according to the state of
defects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR shall not be held responsible for the delay in shipment or non-delivery of
the products, or for failure to manufacture, deliver or perform due to the acts of the PURCHASER
including failure of the PURCHASER to supply to the VENDOR in a timely manner with all necessary
information, required sample parts or other specified items required by VENDOR to design,
manufacture and test the product. &#8594; TO BE DISCUSSED! <B>&#091;NOT APPLICABLE&#093;</B>
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Force Majeure</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR shall not be held responsible for the delay in shipment or non-delivery of the due to
Force Majeure, such as war, severe fire, flood, typhoon, earthquake,, labour strike or riots which
might occur during the process of manufacturing or in the course of transportation, loading or
transit, or such Force Majeure at any key suppliers of the VENDOR; The VENDOR shall inform the
PURCHASER immediately of the occurrence of an instant mentioned above and within ten days
thereafter, the VENDOR shall send by fax or e-mail or courier to the PURCHASER for their acceptance
a certificate of the accident issued by the relevant government authority where the incident
occurred as evidence thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under such circumstances, the VENDOR, however, shall still be under the obligation of taking all
necessary measures to hasten the delivery of the products.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Dispute Settlement/Arbitration Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;If a dispute of any kind whatsoever arises between the Parties in conjunction with this
Agreement, the Parties shall attempt to settle such dispute amicably. In any disputes of the
measured flash data, the parties agree to accept Freudhoefer Institute, Freiburg, Germany as
reference.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 9 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;Provided the Parties are not able to agree upon an amicable settlement within a reasonable time
and no later than thirty (30)&nbsp;calendar days after initiation of settlement discussions, all
disputes arising out of or in conjunction with this Agreement, - and/or in conjunction with
subsequent agreements pursuant to Clause I, Paragraph (2)&nbsp;above &#091;???&#093; - including disputes over
their construction or validity, and regardless of their legal nature, shall be settled by an
arbitration court in accordance with the Arbitration Rules of Conciliation and Arbitration of the
ICC (International Chamber of Commerce) without recourse to the ordinary courts of law. Such
arbitration shall be final and binding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;The place of arbitration shall be Frankfurt, Germany, or Toronto, Ontario, Canada. The Party
bringing the initial claim(s) in dispute shall have the right to choose between the aforementioned
places
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;&nbsp;&nbsp;&nbsp;The language of the arbitration proceedings shall be English.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;&nbsp;&nbsp;&nbsp;Without detriment to the foregoing, the Parties shall not be precluded from initiating interim
measures via the ordinary courts of law.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XIV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Choice-of-Law Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement and all disputes arising out of, or in conjunction with this Agreement, - and/or in
conjunction with subsequent agreements pursuant to Clause I, Paragraph (2)&nbsp;above &#091;???&#093; - including
disputes over its validity and construction, shall be exclusively governed by the laws of Canada.
Conflict of laws rules shall not apply.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Taxes and Duties</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All taxes and duties in connection with the execution of this Agreement shall be paid as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Levied by the Chinese government shall be borne by the VENDOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Levied by the government of the importing country shall be borne by the
PURCHASER.</TD>
</TR>

</TABLE>
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->Page 10 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Exclusivity /Non- Competition Clause/Confidentiality</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR shall regard the PURCHASER as first priority client and guarantee the PURCHASER that
the VENDOR shall not sell to or compete against the PURCHASER for a list of clients presented by
the PURCHASER and attached hereto. This list and non compete agreement shall be for existing
bonafide current clients of the PURCHASER which are active and have purchased modules for projects
within the current and previous year. This shall exclude clients that may also be purchasing from
the VENDOR unknowingly to both PURCHASER and VENDOR and that are also current clients of the
VENDOR. This covenant not to compete shall remain in effect as long as this Agreement also remains
in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge and agree that during the term of this Agreement that they may gain
access to and become acquainted with information critical to the other Party&#146;s business, such as
business and trade secrets and/or information, trade and business secrets pertaining to other
companies affiliated with that Party. The Parties agree that they shall not disclose any such
information, business or trade secrets, neither directly nor indirectly, to any other person or
legal entity. This covenant to keep confidential shall remain in force after termination of this
Agreement to the full extent permitted by applicable law.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>CSI Standard Warranty Statement and Conditions of Sales</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI standard warranty statement and conditions of sales should apply to any issues not specifically
covered by this agreement.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Entire Agreement and Amendments</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1&nbsp;&nbsp;&nbsp;&nbsp;In respect of the Sales Master Contract and without consideration of the subsequent Purchase
Order or Conditions of Sale for each separate sale, this Agreement including EXHIBIT 1 shall
constitute the entire Agreement between the Parties with regard to its subject matter. This
Agreement shall supersede all other prior oral or written agreements between the Parties hereto.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 11 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2&nbsp;&nbsp;&nbsp;&nbsp;Any amendments to, or modifications of this Agreement shall become effective only when in writing
and signed by the Parties
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVIIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Severability Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event any provision of this Agreement proves unenforceable or invalid for whatever reason,
the remaining provisions of this Agreement shall be unaffected by such holding, but remain in full
force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS THEREOF, this Agreement is made in English and signed by both Parties in two original
copies, each party holds one copy. This Agreement is effective from the date both Parties have
signed it.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Gregory Spanoudakis
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regensburg
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October&nbsp;2, 2008</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Location, Date, Stamp and
Signature of Canadian Solar
Inc.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Bernhard Tsch&#246;pl
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Location, Date, Stamp
and Signature
of ILIOTEC GmbH</DIV></TD>
</TR>

<TR valign="bottom">
<TD colspan="5" valign="top"><DIV style="margin-left:0px; text-indent:-0px; margin-top: 6pt">[Stamp of ILIOTEC Solar GmbH]</DIV></TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->Page 12 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;I</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Commodity, Specification, and Delivery Schedule for the current Project:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5A</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>6A</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>6P</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>6A eco</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Jan 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Q1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Feb 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mrz 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Apr 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Q2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mai 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Jun 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Jul 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Q3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aug 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sep 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Okt 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Q4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Nov 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dez 09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Quantity
in kWp</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1995</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1980</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Price:
Euro [****]*/Wp <SUP style="font-size: 85%; vertical-align: text-top">*)</SUP> CIF Port in Europe

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Price: [****]* Euro w/p CIF. Port in Europe

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">*)&nbsp;&nbsp;&nbsp;&nbsp;Prices are valid for shipments from December 1st , 2008 onwards. Shipments within the month of
December are invoiced at EURO [****]*/Wp. The thus over-paid balance will be re-imbursed over the
course of the shipments in January through March&nbsp;2009 by accordingly lower purchasing prices and/or
credit notes.
</DIV>



<DIV align="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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    This portion of the Sales Contract has been omitted and filed
separately with the Securities and Exchange Commission, pursuant to
Rule 24b-2.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 13 of 13<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.6
<SEQUENCE>7
<FILENAME>h03379exv4w6.htm
<DESCRIPTION>EX-4.6
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.6</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT 4.6</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Letterhead of Canadian Solar Inc.&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 36pt"><B>Sales Contract</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>September 1st, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">Contract No.: CSI-IIG080715
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">entered by and between
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Canadian Solar Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">675 Cochrane Drive<BR>
East Tower 6th Floor<BR>
Markham, Ontario L3R 0B8<BR>
Canada

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(hereinafter referred to as the &#147;VENDOR&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ILIOTEC International GmbH</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">An der
Irler Hohe 3a
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">93055 Regensburg
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Germany
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Tel: &#043;49 941 560211-0
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Fax:&#043;49 941 460211-81
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(hereinafter referred to as the &#147;PURCHASER&#148;)
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 1 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Recitals</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Vendor is registered under Federal Business Act of Canada and manufactures crystalline
photovoltaic panels at its wholly-owned manufacturing plants in P.R. China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The PURCHASER is active in the photovoltaic market. Among other business activities, the PURCHASER
distributes solar modules and carries out various solar power plant projects in Germany and other
parts in Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The PURCHASER has a need for certain Mono/Poly Crystalline PV Modules for the PURCHASER&#146;s
project(s) (hereinafter referred to as &#147;module&#148; or &#147;modules&#148;), and desires to procure said modules
from the VENDOR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR desires to deliver and sell said modules to the PURCHASER.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOW, THEREFORE, </B>the Parties agree as follows:
</DIV>


<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>I.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Type and Quantity of Modules, Prices, Delivery Time</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Type and quantities of the modules which the PURCHASER needs, the applicable specification, the
prices, and the desired time of delivery which is set forth in EXHIBIT I to this Agreement.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>II.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Labelling</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>The product labels and trade marks of each module shall state the manufacturers&#146; name, each
module&#146;s serial number, indicate the nominal output as well as current and voltage characteristics
at standard test conditions (STC)&nbsp;of the type of module concerned and bear a clear warning against
hazardous behaviour. In addition, all existing certifications, incl., but not limited to IEC
61215, Protection Class&nbsp;II and CE Mark shall be printed on the label.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 2 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>The PURCHASER shall not, without the prior written consent of the VENDOR, alter or make any
addition to the labelling or packaging of the products displaying the Trade Marks, and shall not
alter, deface or remove in any manner any reference to the Trade Marks, any reference to the VENDOR
or any other name attached or affixed to the products or their packaging or labelling.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>III.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Port of Shipment/Port of Destination</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The port of shipment shall be Shanghai, P.R. China or any other Chinese ports determined by the
VENDOR from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The port of destination will be the major German port (Hamburg), or any other major European port
(e.g. Antwerp, Belgium). The PURCHASER shall timely notify the VENDOR of the port of destination
for every single shipment.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>IV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Packing/Shipping Mark</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>The packing shall be in accordance with the international packing standards (no wood package,
for example) and suitable for long distance ocean shipping freight transportation and shall be well
protected against moisture and shocks as well as disinfected. The well-packed PV-modules shall be
shipped in containers. The relevant service and operation instructions shall be enclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>The VENDOR shall mark on each package with fadeless paint the package number, gross weight, net
weight, measurement of the package as well as of each single module, the serial number and wattage
of each single module in the package concerned, the name of the module type, the port of
destination and the wordings or imaged indications representing: &#147;Keep Away from Moisture&#148;, &#147;Handle
with Care&#148;... etc.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>V.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>TITLE AND RISK OF LOSS/INSURANCE</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>Risks of loss or damage, as well as any additional costs due to events occurring after the time
of delivery shall pass to the PURCHASER on delivery in accordance with C.I.F. Incoterms 2000:
However, title to the products per specified delivery shall pass to the PURCHASER only after
payment for those particular products has been received in full.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 3 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>The VENDOR also has to procure marine insurance against the PURCHASER&#146;S risk of loss of or
damage to the products during the carriage only on minimum insurance coverage in accordance with
C.I.F. Incoterms 2000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>The PURCHASER shall at its own cost maintain insurance coverage against all risks which would
normally be insured against by a prudent businessman in respect of products supplied to it
commencing from the time when the products surpass the rail of the carrying vessel and extending
until such time as title in the products passes to the PURCHASER in accordance with Par.1 above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.<B>&nbsp;&nbsp;&nbsp;&nbsp;</B>In case, the PURCHASER chooses F.O.B. Incoterm 2000, he shall instruct the VENDOR at least two
(2)&nbsp;weeks prior to the shipment. He will then be entitled of a price reduction of EURO 0, 03/W/p
to compensate for the freight and insurance cost.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Terms of Payment</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The payment shall be made T/T payment 10&nbsp;days prior to arrival at the port of destination against
the presentation of the shipping documents.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Documents</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR shall send the following documents immediately to the PURCHASER (in case of C.I.F.
Incoterm 2000), or the Assigned Logistic Partner (in case of F.O.B. Incoterm 2000):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Full set (including 3 originals) of shipped on board Bill of Ladings made out
to the Contract and blank endorsed and consigned to the PURCHASER, marked &#147;Freight
Prepaid&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Signed Commercial Invoice in 3 originals indicating contract number issued by
the VENDOR. Packing list (including 3 originals) with indication of weights,
measurements and quantity issued by the VENDOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Flash reports stating the module type, serial number, Isc, Voc, Imp, Vmp, Pmax,
and the date of testing by Fax or E-mail to PURCHASER</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 4 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Within 5 working days after receiving the shipping documents from the VENDOR&#146;s shipping
forwarder, the VENDOR has to fax or e-mail or courier one copy of the Bill of Lading and one
copy of the Commercial Invoice to the PURCHASER.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The number of the documents and their contents shall be complete and correct. If the
PURCHASER fails to pass the customs and to take over the products in time due to the VENDOR
not having provided the documents as specified above, all losses caused by the VENDOR&#146;s
fault shall be borne by the VENDOR.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>VIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Shipments</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C.I.F. German Hamburg port (Incoterms 2000) or any other major European port (e.g. Antwerp,
Belgium).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise agreed in writing between the Parties, Cost Insurance and Freight Incoterms 2000
shall apply to this Agreement. If there is any conflict between such Incoterms and the terms of
this Agreement then the terms of this Agreement shall prevail.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The particulars of the shipment including the name of the vessel, date, quantity and value of
shipment are to be e-mailed or faxed to the PURCHASER within 2 working days after such information
received from the VENDOR&#146;s shipping forwarder so that the PURCHASER can arrange for the Customs
Clearance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Partial shipment shall be allowed, but only in full containers. Trans-shipment shall be not
allowed.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>IX.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Warranties</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR guarantees that the products shall be made of qualified materials with first class
workmanship, that they shall be brand new and unused and that they shall comply in all respects
with the quality and specification stipulated in this Agreement including its attachments and that
they shall be in conformity with the relevant technical data.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 5 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR guarantees that the modules are manufactured according to IEC 61215, ed. 2, T&#220;V
Safety Class&nbsp;II, or IEC 61730 standards, and the CE Mark.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, the VENDOR shall issue a written warranty for his products with the following
content:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Product Quality Warranty stating that the products shall be free from defects
in material and workmanship for two years. If, within 24&nbsp;months counting from the date
of installation, damages or defects occur in the course of operation because of
inferior quality, bad workmanship or the use of inferior materials in the manufacturing
process, the VENDOR shall, upon notice by the PURCHASER with authentic and sufficient
evidence, immediately repair, replace, or make adjustments to the default products.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Power Performance Warranty stating that the power degradation of the
products&#146; originally rated power as determined under Standard Test Conditions
(1000W/m2, 25&#176;C cell temperature, AM=1.5) shall not be greater than 10% after 10&nbsp;years
and 20% after 25&nbsp;years.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;&nbsp;&nbsp;&nbsp;This warranty shall lead to the consequence that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if, within 24&nbsp;months counting from the date of installation, damages or defects
occur in the course of Operation because of inferior quality, bad workmanship or the
use of inferior materials in the manufacturing process, the VENDOR shall, upon notice
by the PURCHASER with authentic and sufficient evidence, immediately repair, replace
the defective products. Costs for transportation of the default and replacing modules
and installation costs shall be borne by the VENDOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if it is determined that under Standard Test Conditions (STC, 1000
W/m<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>, 25&#176;C, AM=1.5) products supplied by the VENDOR to the PURCHASER do not
meet the warranted percentage of its specified power output during the warranty term,
the VENDOR shall execute the remedy as stipulated in its warranty statement.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 6 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;&nbsp;&nbsp;&nbsp;The warranties shall not cover damages, malfunctions or service failures caused by:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Errors made during installation, operation or maintenance,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Abuse or misuse,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Power failure surges, lightning, fire or flood,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#045;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Actions of third parties and other events or accidents outside the reasonable control and not arising under normal operating conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where inspection of the defective product indicates with sufficient evidence of
improper installation, operation or maintenance, the PURCHASER shall reimburse
VENDOR its costs for the replacement or repairing the product including costs of
examination.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>X.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Effective Date, Duration, Termination</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall come into effect after both parties have signed it (&#147;Effective date&#148;), and
shall initially remain in effect until Dec. 31st, 2009 (&#147;Expiration Date&#148;), unless the Parties
agree on an extension prior to the Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;If the PURCHASER becomes insolvent or bankrupt or breaches a provision of this Agreement and
does not remedy such breach within thirty (30)&nbsp;calendar days of written notice by the VENDOR, the
VENDOR may terminate this Agreement in whole or in part effective thirty (30)&nbsp;calendar days after
said notice was given. If the VENDOR becomes bankrupt or insolvent or breaches a material
provision hereof and does not commence to remedy such breach within thirty (30)&nbsp;calendar days of
being given written notice by the PURCHASER, the PURCHASER may terminate this Agreement in whole or
in part effective thirty (30)&nbsp;calendar days after such notice was given.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 7 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(3)&nbsp;&nbsp;&nbsp;&nbsp;In regard to any orders already been made by PURCHASER before the expiration or termination of
this Agreement, this Agreement shall fully remain in effect beyond the respective expiration or
termination date. The foregoing shall not apply, if the Agreement is terminated by VENDOR due to
PURCHASER&#146;s bankruptcy or insolvency.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Claims</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;Within 30&nbsp;days after the arrival of the products at final CIF Port destination should the
specification, quantity or appearance of the modules be found not to be in conformity with the
stipulations of this Agreement, except for those claims for which the insurance company or the
owners of the vessel are liable, the PURCHASER shall, based on the Inspection Certificate issued by
an office of the Authorised Administration of Import and Export Commodities Inspection of the
importing country, have the right to claim replacement with new products (in case of total
failure), or financial compensation limited to the cost of the products in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR, upon verification of the PURCHASER&#146;s claim, shall be responsible for complete or
partial replacement of the commodity or shall devaluate the products according to the state of
defects.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Force Majeure</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The VENDOR shall not be held responsible for the delay in shipment or non-delivery of the due to
Force Majeure, such as war, severe fire, flood, typhoon, earthquake,, labour strike or riots which
might occur during the process of manufacturing or in the course of transportation, loading or
transit, or such Force Majeure at any key suppliers of the VENDOR; The VENDOR shall inform the
PURCHASER immediately of the occurrence of an instant mentioned above and within ten days
thereafter, the VENDOR shall send by fax or e-mail or courier to the PURCHASER for their acceptance
a certificate of the accident issued by the relevant government authority where the incident
occurred as evidence thereof.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 8 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under such circumstances, the VENDOR, however, shall still be under the obligation of taking all
necessary measures to hasten the delivery of the products.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Dispute Settlement/Arbitration Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;If a dispute of any kind whatsoever arises between the Parties in conjunction with this
Agreement, the Parties shall attempt to settle such dispute amicably. In any disputes of the
measured flash data, the parties agree to accept Fraunhofer Institute, Freiburg, Germany as
reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;Provided the Parties are not able to agree upon an amicable settlement within a reasonable time
and no later than thirty (30)&nbsp;calendar days after initiation of settlement discussions, all
disputes arising out of or in conjunction with this Agreement, - and/or in conjunction with
subsequent agreements -, including disputes over their construction or validity, and regardless of
their legal nature, shall be settled by an arbitration court in accordance with the Arbitration
Rules of Conciliation and Arbitration of the ICC (International Chamber of Commerce) without
recourse to the ordinary courts of law. Such arbitration shall be final and binding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;&nbsp;&nbsp;&nbsp;The place of arbitration shall be Frankfurt, Germany, or Toronto, Ontario, Canada. The Party
bringing the initial claim(s) in dispute shall have the right to choose between the aforementioned
places
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;&nbsp;&nbsp;&nbsp;The language of the arbitration proceedings shall be English.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;&nbsp;&nbsp;&nbsp;Without detriment to the foregoing, the Parties shall not be precluded from initiating interim
measures via the ordinary courts of law.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XIV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Choice-of-Law Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement and all disputes arising out of, or in conjunction with this Agreement, - and/or in
conjunction with subsequent agreements - including disputes over its validity and construction,
shall be exclusively governed by the laws of Canada. Conflict of laws rules shall not apply.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 9 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XV.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Taxes and Duties</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All taxes and duties in connection with the execution of this Agreement shall be paid as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Levied by the Chinese government shall be borne by the VENDOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Levied by the government of the importing country shall be borne by the
PURCHASER.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVI.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Exclusivity /Non- Competition Clause/Confidentiality</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;&nbsp;&nbsp;&nbsp;The VENDOR shall regard the PURCHASER as first priority client and guarantee the PURCHASER that
the VENDOR shall not sell to or compete against the PURCHASER for a list of clients presented by
the PURCHASER and attached hereto. This list and non compete agreement shall be for existing
bonafide current clients of the PURCHASER which are active and have purchased modules for projects
within the current and previous year. This shall exclude clients that may also be purchasing from
the VENDOR unknowingly to both PURCHASER and VENDOR and that are also current clients of the
VENDOR. This covenant not to compete shall remain in effect as long as this Agreement also remains
in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge and agree that during the term of this Agreement that they may gain
access to and become acquainted with information critical to the other Party&#146;s business, such as
business and trade secrets and/or information, trade and business secrets pertaining to other
companies affiliated with that Party. The Parties agree that they shall not disclose any such
information, business or trade secrets, neither directly nor indirectly, to any other person or
legal entity. This covenant to keep confidential shall remain in force after termination of this
Agreement to the full extent permitted by applicable law.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>CSI Standard Warranty Statement and Conditions of Sales</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI standard warranty statement and conditions of sales should apply to any issues not specifically
covered by this agreement.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 10 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Entire Agreement and Amendments</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1&nbsp;&nbsp;&nbsp;&nbsp;In respect of the Sales Master Contract and without consideration of the subsequent Purchase
Order or Conditions of Sale for each separate sale, this Agreement including EXHIBIT 1 shall
constitute the entire Agreement between the Parties with regard to its subject matter. This
Agreement shall supersede all other prior oral or written agreements between the Parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2&nbsp;&nbsp;&nbsp;&nbsp;Any amendments to, or modifications of this Agreement shall become effective only when in writing
and signed by the Parties
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>XVIIII.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Severability Clause</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event any provision of this Agreement proves unenforceable or invalid for whatever reason,
the remaining provisions of this Agreement shall be unaffected by such holding, but remain in full
force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS THEREOF, this Agreement is made in English and signed by both Parties in two original
copies, each party holds one copy. This Agreement is effective from the date both Parties have
signed it.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->Page 11 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Gregory Spanoudakis
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regensburg
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October&nbsp;2, 2008</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Location, Date, Stamp
and Signature of
Canadian Solar Inc.</DIV></TD>
</TR>





<!-- End Table Body -->
</TABLE>
</DIV>





<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->




<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/
Dr.&nbsp;Thomas Reindl
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regensburg
</TD>
    <TD >&nbsp;</TD>
    <TD align="left" valign="top">September&nbsp;15, 2008</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000" >&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000" >&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Location, Date, Stamp
and Signature of
ILIOTEC International GmbH</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&#91;Stamp of ILIOTEC
International GmbH&#93;


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 12 of 13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;I</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Commodity, Specification, and Delivery Schedule for the current Project:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Quantity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Schedule</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Commodity &#038; Specifications</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(MW)</B><SUP style="font-size: 85%; vertical-align: text-top"><B>1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Price Per Watt and Conditions</B><SUP style="font-size: 85%; vertical-align: text-top"><B>2)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Year 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regular CS-5A, 5P, 6A, 6P
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>10MW,</B><BR>
plus<BR>
Option:<br>10MWp
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Price: Euro [****]*/Wp <SUP style="font-size: 85%; vertical-align: text-top"><B>3)</B></SUP><BR>
CIF Port in Europe</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Year 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">e module CS6A-150/160P
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>5MW,</B><BR>
plus<BR>
Option:<br>10MW
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Price: Euro [****]*/Wp<br>
CIF Port in Europe</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>35MW
(incl. options)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">1)</TD>
    <TD>&nbsp;</TD>
    <TD>Optional quantities to be confirmed by March&nbsp;31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2009.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">2)</TD>
    <TD>&nbsp;</TD>
    <TD>Prices to be reviewed on a quarterly base. If no mutual agreement is reached, the prices stated
in the table shall prevail.</TD>
</TR>

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

<TR valign="top">
    <TD colspan="3" align="left">3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price is valid for shipments from December 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2008 onwards. Shipments within the
month of December are invoiced at EURO [****]*/Wp. The thus over-paid balance will be reimbursed over
the course of the shipments in January through March&nbsp;2009 by accordingly, lower purchasing prices
and/or credit notes.</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=456 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; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    This portion of the Sales Contract has been omitted and filed separately with the Securities and Exchange Commission, pursuant to Rule 24b-2.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 13 of 13<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8.1
<SEQUENCE>8
<FILENAME>h03379exv8w1.htm
<DESCRIPTION>EX-8.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv8w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 8.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>LIST OF SUBSIDIARIES</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Solartronics (Changshu) Co., Ltd., incorporated in the People&#146;s Republic of China

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Solar Manufacture Inc., incorporated in the People&#146;s Republic of China

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Solar Technologies Inc., incorporated in the People&#146;s Republic of China

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Central Solar Power Co., Ltd., incorporated in the People&#146;s Republic of China

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Cells Co., Ltd., incorporated in the People&#146;s Republic of China

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Changshu CSI Advanced Solar Inc., incorporated in the People&#146;s Republic of China

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSI Solar Power Inc., incorporated in the People&#146;s Republic of China

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Canadian Solar (USA)&nbsp;Inc., formerly known as CSI Solar Inc., incorporated in Delaware, USA

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>9
<FILENAME>h03379exv12w1.htm
<DESCRIPTION>EX-12.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv12w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 12.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification by the Chief Executive Officer<BR>
Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Shawn (Xiaohua) Qu, certify that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;I have reviewed this annual report on Form 20-F of Canadian Solar Inc. (the &#147;Company&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as of, and for, the periods presented in this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Company&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the Company and have:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the Company, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the Company&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the Company&#146;s internal control over financial
reporting that occurred during the period covered by this annual report that has materially
affected, or is reasonably likely to materially affect, the Company&#146;s internal control over
financial reporting; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The Company&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the Company&#146;s auditors and the audit
committee of Company&#146;s board of directors (or persons performing the equivalent function):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect the
Company&#146;s ability to record, process, summarize and report financial information; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who
have a significant role in the Company&#146;s internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:
June&nbsp;8, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
/s/ Shawn (Xiaohua) Qu
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Shawn (Xiaohua) Qu&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.2
<SEQUENCE>10
<FILENAME>h03379exv12w2.htm
<DESCRIPTION>EX-12.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv12w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 12.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification by the Chief Financial Officer<BR>
Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Arthur Chien, certify that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;I have reviewed this annual report on Form 20-F of Canadian Solar Inc. (the &#147;Company&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as of, and for, the periods presented in this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Company&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the Company and have:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the Company, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the Company&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the Company&#146;s internal control over financial
reporting that occurred during the period covered by this annual report that has materially
affected, or is reasonably likely to materially affect, the Company&#146;s internal control over
financial reporting; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The Company&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the Company&#146;s auditors and the audit
committee of Company&#146;s board of directors (or persons performing the equivalent function):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect the
Company&#146;s ability to record, process, summarize and report financial information; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who
have a significant role in the Company&#146;s internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:
June&nbsp;8, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
/s/ Arthur Chien
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Arthur Chien&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.1
<SEQUENCE>11
<FILENAME>h03379exv13w1.htm
<DESCRIPTION>EX-13.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv13w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 13.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification by the Chief Executive Officer<BR>
Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Annual Report of Canadian Solar Inc. (the &#147;Company&#148;) on Form 20-F for
the year ended December&nbsp;31, 2008 as filed with the Securities and Exchange Commission on the date
hereof (the &#147;Report&#148;), I, Shawn (Xiaohua) Qu, Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act
of 2002, that to my knowledge:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:
June&nbsp;8, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
/s/ Shawn (Xiaohua) Qu
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Shawn (Xiaohua) Qu&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.2
<SEQUENCE>12
<FILENAME>h03379exv13w2.htm
<DESCRIPTION>EX-13.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv13w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 13.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification by the Chief Financial Officer<BR>
Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Annual Report of Canadian Solar Inc. (the &#147;Company&#148;) on Form 20-F for
the year ended December&nbsp;31, 2008 as filed with the Securities and Exchange Commission on the date
hereof (the &#147;Report&#148;), I, Arthur Chien, Chief Financial Officer of the Company, certify, pursuant
to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002,
that to my knowledge:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:
June&nbsp;8, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
/s/ Arthur Chien
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Arthur Chien&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>13
<FILENAME>h03379exv23w1.htm
<DESCRIPTION>EX-23.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 23.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the incorporation by reference in Registration Statement No.&nbsp;333-149497 on Form F-3
and No.&nbsp;333-147042 on Form S-8 of our report dated June&nbsp;5, 2009, relating to
the financial statements and financial statement schedule of Canadian Solar Inc. (which report
expresses an unqualified opinion and includes an explanatory paragraph relating to the adoption of
FASB Interpretation No.&nbsp;48, &#147;Accounting for Uncertainty in Income Taxes&#151;an Interpretation of FASB
Statement No.&nbsp;109,&#148; effective January&nbsp;1, 2007), and the effectiveness of Canadian Solar Inc.&#146;s
internal control over financial reporting, appearing in this Annual Report on Form 20-F of Canadian
Solar Inc. for the year ended December&nbsp;31, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">/s/
Deloitte Touche Tohmatsu CPA Ltd.<BR>
DELOITTE TOUCHE TOHMATSU CPA LTD.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Shanghai, China
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">June&nbsp;5, 2009
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>14
<FILENAME>h03379h0337904.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 h03379h0337904.gif
M1TE&.#EA!0+1`,0?`#P\/'AX>("`@,#`P+2TM$!`0.'AX=+2TL/#PP\/#QX>
M'BTM+9:6EFEI:5I:6H>'AZ6EI4M+2Q`0$"`@(*"@H.#@X&!@8#`P,-#0T)"0
MD%!04+"PL'!P<````/#P\/___R'Y!`$``!\`+``````%`M$```7_X">.9&E^
M@Q*L;.N^<"S/=&W?>+XZQ>F7`H!N2"P:CTB`X,?\%!S(J'1*Q2D&S:RV.0!X
MON"P>$PNF\_HM'K-;G\)O2TPX*[;[_B\/K"4DPH$>H*#A(5L`%A^BEI=AHZ/
MD'=PBR("=)&8F9IB?)1.@9NAHH:(GJ8FC:.JJVZ3E):LL;)HG92`L[BY7Z6G
MO2A>NL&JKHNPPL>BM8NWR,V9O+ZFJ<[4A<2*QM7:@\J*S-O@>-#1E--W!@A@
M!P0&8*!C!.EJ[X7HN-=^V9@([6_R'@<.I.$7)F`F@IJZ^?DV"`&!A_\0QO/@
M,(T]-P8("+3X\&&_+_S8J=M(:!PY1>;L_QA(`*9!`@@@%Y!IH*#!F@Z/$-B<
MA4^.OD@-'GQ9*?-+!)AH`-!CP.`9O4@*Y3`4!&`!```*%K1KD(YF`P@)@)W1
M66?!@J9I"(2]F@"MAP0&.NSTL()4HI.+4MI1^D6!@YT/+CT$P]=?P7\><()!
M@+CB8L0>-`)\^F5=&,::>F[Y"8D`,`81X'YA.9GDNHU*'8NQ_+B,PX^1268T
M4#A3U"U3]=1N(-8#W[JN18K!?!ER8C"S+Y/TO)@T!"\=%,@#7O(N7C]ZZP0&
MJ."``J.,PV;UW:%#``3B'41>H*`[&,4=(@!(8-.`6?8&[-]OUX%M`/8V,0=`
M!.P5Y4!65F&BF?\6G$%"F@,,0$A1!!X<"$`',($U'TQ5%4@7'0-Z6"&"O>FW
M0`+KF'4A3.AAI0!EC]RF16YYU/86;9Z5IZ,0E]1%TWSK>&&B5HG)1U\8.A+`
M0%AMT76?.[TI%E1B!!1%W2`F7<=(;W<@X$6$'KC'TI0>+!`(7Q&`HI1:L!U'
M)4`X/4`A700$,&<$='00"&\>Q!69%T+T%8\"[<BG8!S%7*))FF$>`&8`#QQ`
MY'.^P42`4(&&62>(E[R(`*$>&`H&!',V$`";'C#@101-(:#G)C)F0:,X]"C%
MUV]T`%=7!^T\\)`7=AJ59R`'*/9>GPFD@YX!`7!994<1J!=F.CA!\:'_75JB
MQ.4=W[%:H:_2(O"`2V<&TM]5*C`G!GS'VE@8<XH!AY.`:F[ZQK;6((J-HIDP
M<-YW![`$@$`&0-"L%P_T]T`[A2E55\/V_KF:O^D"`R]A,#H2:Q.SWN&N9^5>
MJRL=H7E+[[UNIOS%O&(YS&]D:PG1CG<K(WO`E519EVT6V=7A`*JD!M"4`PL$
M9:9OYG:DD;I(UEQS8?F]"]T7\DH,,7!,/[)@%@T^<@``XWZQP*<4*8!GLR#]
M)]/5(-:+=6\,^!4`%.I>O$O&AFS,1,=[T0/7K8'4-?(7$'AULL3&&ELSTRZ+
MD?478;OY',ZZZ;PS$SV[06I1*P'`W\P)A`SV_]V/NYDX77/.'6RH>5)]"<M(
MW_UIH?@2LG4373^RP%%?-!"!30'LQ.?8?>+$=NQ(SQYJ;P#`1-NI%J\JE*MX
M%Z+W#WS7L1N%@(LLK1"2MO,<<ZOCF;+BQZVD+%PXE]Z\TZ&J@.WE6PX2UUQ5
M?6%A`@IP&`AZ[/%"Z=A5,Q-U9TC\<=WB`%6O$07P4)[(G2,:P*LW8(@BXC%+
MJL2#*;>U[6X.5`#<F%2TNGFA1>VI'B&NYX/LN:$JZ/)<['`%D`28Q7P6>A%S
M$'B^=7UA2?-I2ONXY"?X!>QEE:-?_08A'(!$A%@"04ADY'&1,(#B'>]0S13=
M49F-!,(>".''.AA#*O\(O@*)D3@`8H23$8&`XC0@Z8<8HRA'`XP1`64L"#O0
M<9$^LD.*F&#A"5S8!H<\A"0$(8A!^L2.1;ZF3_^8R!NX:$5U"&>1R(%,%>F!
M`))@R7)*1$7MP@&)E9CJ)69,%"G78,H`H'(;@C0!(5=)RUV`,I0DR%PM"W&`
MP!C'$+=C@@1W"1!?AB.6)9@E,<.1)5SF<I3+7&4P?S#,:)(2F7]0H369>4MG
M_F*;T9SF!P2@LVJ"4QO7PX``/)!,;9ZS&LWTYC??64MQ%J`#!;B+.>G9C.L-
MH`,26.<(E,E/8<33F[HLA(T,P2R)D=*>.LKG.-$HBP#HJ#S_<TL8;%0Z6/;_
M`7,Z"B@[";H)]+&AH1VEQD&=F="2N-,.*:T&!!PP`0'8]*8XO>D$+HI/#5`T
M%I2C'/*6^0``%""G2!6`!7@:T`N\5!0F74-,X=E-ED)3H7MZ@`+DTKORV(1B
M7*7(`J(C#Y=T0#TGXDI](A"=5C7``63510,6(($"V/6N>+VK!'@*T)^R`F>?
M4D!3S*H>`#@@`5PE2U"VNI,ET6<NN/B:`B:0U\H6X`)\!>A30X$3IORP*6!+
M0),\0-@RT8<L!F"K8"GRUKCJ8J6X;"F6SA0!.R8+`5JQS\V299^FO"@RWV%`
M;IOW@+$QQP'J0<\Z7N6[8$`TH@/89RB:U8(^(==1_\-]3FT#YA!`;3=9W+7/
M557A3YY:H`(DU01.!F<>#X`E5=DM;G<KE%P4$8"Y<\H%;$,I6ZJ$#&G%@E`[
M@D<X`'R*!2_B'900UP]3F="Y^L)>>20ZT6-0EP4*5#`(D78XI42.4L(H;WG.
M*X+T9F*]/6I=S30L,7@U&'HH>VU58SO>V2*/+P@X4++>1@`5L.!K]&".W3[T
M8%W8D\*5\.LJ@OI!C)&.@7=[FX4_^H-_DGB@FRWIM:YU.HX*<&JN*[)^9\S?
M&OOWQ@\1"FE7`(S@!:P?#C"`M5+5`"%[X;>^88"8[Q%A'U3`!-*%%1+K,F<&
M\*9>'28`B-$68BK[P`-_;O_G:Y&RWIU8ZW2%KO.7-;4+/4<O&/M58G]U\U^E
M!.R4"'#E[U!$6A5<I88-(!=Z/.W>!-A))GOF29\WHV3R\F@%@2BN1AX;.H@E
MNDR_Z\^4/6%BC9FIN6IYZP)4?)Q3R[HMS`'+K1TZU5$`(`,#"+>XQTWN<HN[
M%Z/.`P,$LNX?"N1F`1#("A@0J5$)31V!V8B_'/4&H<T,+?PV\JX9U.M1;(H%
M7WQ`4WH9[U3I.R!-:;?#[?B`!X`X&-C$LBZ89=A^U*DC=`'#)1BN[WBCI4X,
M^'=E-#J+"V7VY3#/P"G2+>B"ED&<)PCT,@,&@2JI&>..EDJ6;8Z+4.\MZ-@Q
MLRC_/$MTQPV<:P4')ZE&MVQ;#+WIL3`Z]I`N!YIC?14X!W34OSZ+C)?XZF3W
M-IDYQO4M>#WMH0C['.!>#;-_@NXJ7?O19ZYTO,?]Z;@;N]^3T7:.H7WPD=!Z
M"PO/L[XC/I7[>GRCF7UXR<_/%$>=N8^KP/G.>WX(/(C@KS]/^M*;G@5*8#84
M3L_ZUE?A"KW(O"DJD-3:V_[VN,^][G?/^][[OO84\$1T?T_\XAO_^,C_O=Y-
M0('D.__YT(]^[B.-><;+\_K8S[[VM\_][GO_^^#?>OC'3_[RF__\Z$^_^IEM
M_?6[__WPC[_\Y_]^V=/__OC/O_[WS__8M[__`!B``CB`_P28??97@`B8@`JX
M@`SH#?_7@!`8@1(X@>YW@!1X@1B8@1K(?1:X@1[X@2`8@NPG@B18@B9X@AUX
M@BJX@BRH@"G8@C`8@S(X?R\X@S9X@SCX?368@SS8@SZX,SOX@T(XA$0H%0]8
MA$B8A$(8A$K8A$Z8@TSXA%(XA2L8A51XA5CH@5:8A5S8A1"XA5X8AF(H@&`X
MAF9XAO17AFBXAFR(?FK8AG`8A]WWAG)8AW:(2W1XAWJXAR>1AWSXAX#H@($X
MB(1X'7Y8B(A8B(>8B(SXAXO8B)!HAX\8B938AI-8B9AHAI>8B9S8A9O8B:!(
MA9\8BJ38A*-8BJA(A$?5?-+7BO^N^(JP&(NR.(NT6(NV>(NXF(N]5U,=<`&6
M]8O`&(S".(S$6(S&>(S(F(S*N(S,V(S.^(S0&(W2.(W46(W6>(V6M0$=L'RI
MV(U7N(W>&(YH"([B6(YA2([FF(Y8B([JV(Y/R([N&(]("(_R6(\_2(_VF(\X
MB(_ZV(\QR(_^&)`J")`"69`B2)`&F9`;B)#"!',.^9`0&9$2.9$469$6F5E'
M^`<7N9$<V9$>^9$1R8TD`)(D69(F>9*9!7A:P)#4)'B6!Q49J7$O670B.0)1
M-9,&IY)9P)(^H',XF3<Q>78_*0N*-Y)#&0MR=P(\F7,N>93<$)1WYY2J4)0V
M*97#H)/_3;"48F>5HV!WS<:5VE.3(G"38.D(26D"6CEW99D04/F5:[D&5#F6
M;YD)9UD":4D"/CF7;."5E:>79Q"7'T"6?ID'=3F28IEDP>`O"$=W?'D,B@DI
M[\9R_`28@KD*CUEO'\(";@$:,I,JB-%0+9!RQU"8-GF8%?9:J^<22$%VC6E0
MJ6E?CD=+E'D,AK4"+B$0YJ&9^M,\!$`@!O``TO)#%)*;S4(D$-8+=SD">?D(
MM0%B)/<&-P,3_M(/!N`OZ5!%!F$PDEE1;=F7I/`.#@8,J=9P`+$"!.,0Y_&;
M/\=PWGEYBE"94PF>U`8&JK)1$+`2'[$`,*$X;R4,I#F6IKF<_XY0&W+"';'F
M'OWA2@#@.\"P.ZX$$ZPV+;S1+)!5=MU)F^#I*UZ@;8>5'S7A$ADA0BXA!-,&
M:^1"FX<)G]Z6H2JC/]OI+34$/]SAGUC)!,F)F*]E%561+*2%%F#2`?(F+9UE
M,=_A`--#*-_1%Y[$G91'FZO7H<SA*Z3C'O?98YW68FHF5$29HDZZ`Z+!4TTF
M!A!0%+$FHRVJ:\@9H$T)"6!3)Z!"'COB)E5#'3A!-D9Z7Q?5GGMPH:ZY`@LC
M,;])(*^B6G2@+GRA+A%R(6N:>%S:IY#2#R:U4&`@)AN!/BKZ=VEJ"@+ZG;WS
M/4B1'W+Z.G2Q$T4D'?95%``!=$UJ4/]/P1Q%`P%>`D7"I:$@Q!R^HV=:FG6-
M"FJ485*1\T.7$&MC>BRCDE^Y\)^!J::\.A2_)5P'D%HJ5C7<15^0DR!A(A2H
MD@NMN:Q6!!WIP`!Z(ER%0JNQ(R#8*C\&M:NOU:MCX!UO=#0U!*,ITV.K>:PU
M^@,W>IKZA45)2E@)M&6*L23QT0_%@A:X%1WU:J&KRJT+)K#R,5CEH1Z&&@C,
M\2D=L`#(A:*><*FA(*E\]08V%$0;54$KHR/Z.9KWZ@/YNJF#60;;VK+5L;'6
MY!'AE+)*J:PP:SU\FK.?)+,\RT0VBY8X^[-[NK!$*P[J>K0P%;1V.;1*:P<O
M^[0OE+12RP;_R+JRBRJU_C0!P9=-5;L79"8`2":77]L*(.FT8I`1'5%'>H!)
M>&`07_1+M@,)(L:U,GFL:P!([;JDVK!?`C!A=\&QCM`82@,;[`E3VD``%V!N
MC&MNY8&V5A0S32*I;I"K;.!9=5JA97``QGH3=&M]_Z0C=NN6A7"IE&LPJ;*=
M><<U%R51@EL(2T(2,+2C\K`DIN(7;%!GOI&X3&N36&L&3(,>R4,/K%$9DN$.
M&V&>390<B[&D@]$TCO,/&2$/3+,.;0*=Q%H:EH1(3;2Y6$%9PHA9/#4!$Z"G
M>F`LCV2\3J:]6V9%SLNWK*`J">"+PKA3/'5/64<=!$HA/4:=_3,4_]V;OI)Z
MO(QTO3EY"H^KJ3^5-<9C%N,Q(O.1#AJ"2N?2)/^1%:P&1!;\)&!P'S*Q*Q*#
M0A2BP391'EZP/Y_IP"6J&!9R01,,$S\2H67`<4>%>TMUO^4;#%(B0JR&PK'3
MPCU7'AB&0A*K(A=T#P&@`!:0>_=T40'UNH/`N66RON[E!612&>V@P4UA(BAB
M47HR+T;,(N*!9V#7NV/YNS=G)@\1+;[1*0\!*D55*9$A%!TP/>P##%"@/AC$
M<8Y#IO!V',P1`6KF`))RG;#C)3$&.11B`/*#$^%3Q7)\*8G1*]HD8H`;E;D`
M'Y3<OQX0QZ8V*<"2*R`B%(S\$*)1GS+&NO_E(5*!R0H.`,-H49O!@TJ2JL?+
MDD>F$COS<LK20Q&OP@K_F<`1M,`Q$P`,XT''DC!@\Z](,S*,$S'(T1X_PV6(
M`P]S`SM)?!47LE&@`,)]8C"OILQ_6C*JRPF@>\E"J0N*0<[M:SQ?!,ZA3,UA
M]FFIC#L`)5!D.PHKD6;`4)M8(0\#W#+$0C$?!#O5O&%EC,!H3`;N@\Q.DVH:
M9"R-0V0"33G5>5@&TSI#]JQ6(338_#,@M[X@_"EG(YYJ0SA>D0;^-+:8C`O&
M4C@U0:?)8S9L)C+4!FST/&99D`'X7)6J$#?:S&H-HV97'!FT=C=Q`P76PA<&
M/624NPG!O-#PL"W_Q@;'7D`\?E+'&+1E*V#+[/,RN(QAL$-UAE44$``[G)PU
M!<K(K4-@I'75AOS(%V<&42L+C@S*G.S)=2(\\?PPI*Q#.4V3/CL*[O%#A?5&
MK*8\1I%R/+HL[_,\NLQMO4P]2&G&@2G5CD/5#>3#0*0`=&P5%IQB&R2R.*,?
M6,$L&GU"XN$Y'LPK`58A3%*O^M$>K8-"&M390I%#E;RS+JT_(O1;/IP:&203
M2Q(8=$#$D@UJ5$N7J(HL.`(&<=S)])'$TJ+%HVU#-G$@]Y7<*!0ZE:W0>F>W
M>/E35;08;$L1Q'N\\T*P&[%(UMM%#/U&;@1)[A!)RC(S;]2]L:$14P(*_VT4
M&<;+O08\!G6-E(O11*I!$/\-"HRQ2/]-WQ"NTY0`Q7G@MA3!1Y64-J>B1Q]A
MO1>Q-!!N#Q!@O<0#S)8MS#O9`>*MKYA`X3QA:[<92+Q=MFHPFX_W']OVW::`
MXEDINL''LFJ0M;*0:I@)DT9+XVE@XX^GG0,.U2?>`4NL>WQ%64*NM`6.Y&6@
MY%B.!L&L`<;(5Q)P`55^M%>^Y6*@Y69^<R?N!TZ\3D!.M&6>YK8TV'+.T&LN
M!ZN,SV_^LW$NYVA>YU9TYUO`RLHI0MI\Z(B>Z(J^Z(S>Z([^Z)`>Z9(^Z8FN
M`&VIHY2>Z9J^Z9S>Z9R>`"GJZ:(^ZJ1>ZI*^`/^"[@D5T+BLWNJN_NJP'NNR
M/NNT;F[4IP@84.NZONN\WNN^_NKL5`Z_/NS$7NS&7FX8@,`*N>PEV`',_NP@
MZ.S0/NT9*.W4?NT2:.W8ONT+J.W<_NT$Z.W@/N[])^[D?N[X9^[HON[QI^[L
M_N[JY^[P/N_E)^_T?N_?9^_XON_:I^_\_N_>Y.\`/_#T(_`$?_#78?`(O_"^
MH/`,__`3#O$2GRT./_$6;Z,7G_'(J?$</^%[A9(@'_(B/_(D7_(F?_(HG_(J
MO_(LSU.FV?$3GZ\P+_$R/_,/7_,VO_`XG_,'O_,\/_`^__/_'O1"O^]$7_3W
M?O1(/^]*O_3OWO1.O^[_4!_UYS[U5#_N5G_UWY[U6K_M7-_UU_[U8#_M8C_V
MSYZOJW[L:K_V;!_KM^X'N=[V<C_W<Q_L>4'W>)_WQ)[L"!R@AF[J@!_X@K_I
MELYLF#[XB)_XBA_4H;[XCO_XIH[JF3K,@.ZR,U[Y<S[AF`\/EIVL"KSYYGSD
MF__GF'^UD(OY?9[FI%_YIO_YH"]REX_YJP_HK4_YKT\UL5_YLU_GM7]&MX_[
MHB_[R\WZG8_9N2!GB%7B6)?ZHL`;5\%BAL`5Z4KG=_"LHZ"W8S"><NL:3=X9
MQ7_Z91=G,-/]X,3\'>LK2K):S&F^2:3Y>H"Q9Z"[>J"[TD_7/J;^\;\GV^_]
M_Y,/`I\XDB4I!)ZZLJW[PO$+0"MS>$8#.#@3``@(!R"E>@`B",^!P>`99-(I
MU140F++9`J'J_;:"*T3"0X!$'(^5<84N,IU0%1#8!>.K@(&V/^KDL1`X+$3!
MB*D0X*P8$$0A+(TYJB"N'$RR)!@>E*E<MCA6CD4F+@:^$!3XK8IT\+%JH9S.
MQ@0H!-Q1.A`T+'AT.$`@*#`01*0$1!`P*#0FX/+02K=<P6[E3L^*+B`$)$!`
M*."@"7Y#+!0_$T3;.71@9P?N69L`SCH@/##0&07X=[PC`T"!`S,+%"Q80.1;
MCH0+$AP(`'!=%P<*`"3`QK"%18Q+`"P``/"=F`X1,/\V:'AP01MIJ>AI<06S
MA*QXTQA$Z/",B0)+OZ+@)'"FC`((0B,\(.#+#`";TJK-%,'%Z2E100*D](#5
M@X-]ENXXP+5TG0=Q*A3`H^IE7M0/]@(=\&6@I]9^*<0`6#-7J"8/+#U`:$K.
M0X.[78(,BP)AC8T$"2)X)=#,`Q(/<"P?[O*.":`'$7+<BO>R[9]7;6NJI04A
M0;&F+.S9`B"[:8?9`%HG<IT:#]2H4W=_V=;-R(&>?1E9['"++--?*T0!G\(V
MZML\`78I[>*/'V;G_)B+8=[$EF',VV-`:("P[@I`B/!J;M^=?;;1I-V:CHHZ
M>A6(;`(,LT(#!]CS0$$Y[./_'V"7N,8<?U7T-M-O#TI128#G6;9#"\?@4!AS
M9)E55EH4NC#=3-7A<9%L"M&W74G_@=<%6<R$%59W5[5A2A.,H(6A>W?`YYUS
MB&#HDBKWX7???B3&L`,.PQRVBRW>&:!.&EHM``$#$'VH&Y.U8-'6A%^6F-0R
MQ-#GP9:,K9`&`=Y`DQN6@VQ&Y@SYP83B%PP<>%9$!\*!EUYHQ=@<#3D$FIED
M44C&2`>F*(#`HI0U]5YF0G;VV5PMT6(?:3*1MJ2=+.B0@'(UY+!##Y:-040`
MAB"AC`<(9$7KJ#!$"-.8MQ(VVRXJ..&H*2H80$0#/]@Z:U9U-$`*KY;A28^>
M:Z&J_T)AG"1T#%=H"410<]W-F`!&"Z1D$47;8E0M90D4QB*Z"7P$%EHOJ@"(
M`0DI$%I]1]X'*BL9>$`3I\\2S&2N].Q:<`R5*2R-B7F>`H\!2S1BP`&+*))#
MQCE$@D`4$WOB",AF'.!QR(:P,!PVDHZ!LB(FYR+C)0<TP*:12"8)2P<2"!"P
M"*(V'+1:!UN3L-`KY.OLT6`\+.W201/P3`,*3N-I6_ZN,A+/`0/]M->!$`V+
MT5^3'5RTUDQ;]I?=/##LS4AB[<=(`/',P<!JXRU%V"2H8,+8>0,>QMDE5)!%
MVH$C;@:_I$DPM^./0][!W8DCOO<(`VQ-PM^4Y]VT"0),0/]!"8=SCK?5.&<]
M=^A=V_F#/VVWL.,+BTS^M.4B#$!WSU*-6+#K_B`#2N]J>TX30*'_47KIIZ/>
MQTC(?\`ZF3SX,_6PLKO02>U+W_Y![EKWO#FOU`.OE?"<%W^"ZJ*3KCS9S#=O
M./0_;_]E)859S$#;2WC\PY.;=>%B;\J%_X;')`1$+H&.DX`$##@^>`3P`/JX
MF!D,\(`';"(`-W!;P1Z@P`]V8`+M<Y_7X!>_$HA.8`V[7U(>$XQ*D<L!FFA`
M;9QC"P=,K0N]L,4(']0(!UA@`$(<(A&%F($%"N`"#KP5=`#AC084)@6U`4)3
M.-&`".Q$:)=80`:*Z,4!6,!QH>O_(0F/9L(3^D%Z]@O+=331*$-Y90'QL>&!
M\-<7`I#Q0=W[WLYV)SXFAD0V2W#B@;;SJ!P`HC"4J!\3!Z>^XZ4PCV5LV!G1
M&`M&DHA\&/P662SE'2?:Q4&2C,X>^^BS#_QQ5'D1RB1`R9VW_(@[2TO?"`00
MPA2V8I*!JZ0E/X=)"D&G2_.AEROK@H"E&&"4P.D>!G:GN26J$A[%-*1\(H`J
M1<[2D2.@`"Z3I\N\\;*7)_CE@X+9H$H!23-1F&8*T.2.AG5/"ZFT4Q-;)$7Y
M,*`09""G_;0IMV^"<W'B7(4:F61..7DR)P2RYZP4``QE[B:>UWA:/<]#S7I9
M2SF7.1HMR_\)4+6%<Z#1XR?E'/`(NA1,HGZ#9N`8@"K(4-2?SOLH2`4JTDO2
ME`7JP8A74AHFW[`4<)P`22%B^JF<OL^F-_4E4K^",I^29IZ($\+7.CK3ICXM
MI`,M*%9'I=(22+6K!I5I3,1J1J4N=9QF%=I7G[G6H%FUK&]5F%;%R=6YZO&G
M$@HJ7H$35\/UE6!U[>5=`QM1O>J*KX:ERE_KL=A;#=:2M@0A92MKV<MB-K.:
@Q2QB$;;9SX(VM*(=+>3(:CC2HC:UJEUM!]!*CQ```#L_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>15
<FILENAME>h03379h0337903.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 h03379h0337903.gif
M1TE&.#EAQ`%T`/?^`("`@,#`P$!`0/KZ^O/S\_W]_?;V]N_O[_S\_#HZ.O?W
M]^SL[/#P\/7U]6AH:+*RLNOKZ_O[^U%14?GY^5)24NWM[>#@X+:VMLW-S3\_
M/_3T](R,C"`@(+BXN')R<G-S<U!04-;6UL/#PYZ>GHZ.CC`P,/CX^.CHZ-W=
MW;2TM)F9F=S<W.;FYMK:VI&1D7EY>=[>WD5%1=_?W[R\O+"PL.'AX=O;VX>'
MAP```/'Q\<K*RL3$Q)"0D&]O;Z&AH<S,S)R<G'U]?82$A$E)26YN;L'!P;JZ
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M;61D9%=75SP\/'M[>XB(B!L;&^3DY)J:FF9F9D9&1EI:6@$!`3@X.*.CHVMK
M:R(B(A\?'W1T=!H:&IN;FZ:FIJZNKDU-34-#0R@H*$1$1&=G9P("`E145$M+
M2TA(2#,S,R\O+RPL+**BHEM;6S(R,BLK*Q$1$30T-!P<'"0D)"<G)QT='08&
M!D='1Z>GIQ45%24E)1(2$A@8&"TM+2HJ*@,#`Q86%DI*2@@("",C(RXN+@T-
M#0P,#!D9&04%!1,3$PL+"P\/#PX.#C4U-0D)"00$!"DI*1<7%PH*"AX>'A`0
M$"8F)A04%`<'!____P```"'Y!`$``/X`+`````#$`70```C_`!GH*R&@H,&#
M"!,J7,BPH<.'$".F*M&O6\2+&#-JW(@P5ZUVN3B*'$E2XS%DM7B5*LFRI<N"
MI;:I*."OILV;./W1`)&SI\^?0(,*'4JTJ+\OSF@87<JTJ=.B91P<>4JUJM6B
M$;J5N<JUJU<#DB`L!2'*J]FS3<%<BX"VK=N?2/B\G4M7)ZP6=?.BU>.';=$#
M''+H'<PUQP8BA!-37>"+A^+'31^YT`"Y<M%48)86XFFY,U`K$GYX'ITSJ@[2
MJ&M&R+4U-6I+'":,?>`:=0<NM4DC"9-[="%8-GI[1A,$@5'`!(1;9G!8>64H
MCN0XK_Q(3H/ID"4%-SI"`O;'H#%\_T_<*X_X\8,+4$F!GO".#,:+%LA`N[W>
M#@GLZS7$6W]='XZLX%]=CXA!4U$H<)#<@&\Q<$8/#+Y5@Q8C1/A6%B1<9R%:
M#7"PP%(D]+?A655(<-Z(7EWB@`4HFE5!!H"T:%8O?L1'U'PBR.C5!?GIR-4'
M'_C(52"OU"#D5:6DL10,)2Q8FPE5^*1`%'0Y*->15%G@0(5T0<#"`#>-\N5-
M*XPREP$6&%"4!".`B>53MG!@(U$D>%#5`'ID``1.!,3R`EY-(2`*!SE%<$$)
M?M15XHE,#7#$'"#8<2"*(ZSX%"-J.*)*+'D@L448*-STPS924%:3#K4H86I-
M603C%UHA)/\@`8M$56#*5&\^A80:DPZ%0`8Y4D7`,]M,&@$F.*#2$P(K6/%4
M!0Y`DA<QBE!E@`=4"`GD4RND`(4_NE!PW2:XVD0!*:OZ@\@6Z=;5`R0R<$>$
MD;DZQ4&H1JU0@H9.*?"!)"389,`'I3S1$P09$/)LM'FQX$$?3UV;K8]:7N)4
M`PK4%&YR&.-T;KKKMDO7N_$:!4*;]39E1P:]"E4`"4$^I0`9@XA#4P$M=)&!
MP00H\XHQC_@S!PZOT##`#89`LX<_LU#!QB\W@(*,/P0\X8<2QQC``,-Y_>`,
MODQ)G),7$KR22UDBS.'+(5,T<8LO"2!QPC21F'%-):Z-H`6]3VW_7-,F#FR!
MQ5:0./,).5D$ET4S0MB3AQ,8E$!&#8TDX`D(]YQ2TQ[2U($+"7S[$T0/("0A
M0QSO9/*!/+W4=(L6+T3##*U%+6#*:2DS%0:71?VZ0\1H&"!,P`0$8P(7!G,"
MCS\L[!*"$[M<,0`;KOA3!0Y@L(!#'"94<$DX_K10#PHG,#',!%SGQ4DS3HE]
M4PM9O.#/(3$<$(05!)0113&T^),(!\5P13CL,`$UN28,AJB*WPX`!R'X(P^1
M\,<T4F$F7LSA@;D0RSP0HPDI^&,&Z0B$/S*`"W\,8@LP6,,S-G&30O#"#1K`
M!B84``PD^,,!(!B%$6!QA0<:@W9%&0$1_]:0NZ40@`,56(H-X,"OI1C`ACRP
MV12$H`#D^2,";<##*^CQ/.?E(`9*V-4>"`&%97S!'P,(!/B@-(4Z_&($Z).6
M7BQA!L>$#5LXB0`$\-`+;2#"'Z``1EDL``MCW"`4G[B"#\#QH=R$P`_2H(K?
M_+$&"UR@'8[P1RS0Y8\7).,`L6"7/PR1BQQ0P(->2,`%_`%&?X0"!#!@!`=X
MYP\%G,`*-\#!`Q0@C#CXPP.1,$`DU'`=DC4%$9=P4Q&)\@!0+`4!C8A9V&QX
M@%KL@0TFR($5"4"A)C@/>B$X`!;J4P`-R,",:%0CU9[0AQKPXGSIZ]H08'#'
MB=5D``HHPR.^\/\!4_AC"H?8119^4)V:R(8-C!2.'!SQ+:=,\@V'.,`6(KA)
MRGRB&4T()67Z8`P&G-(?J5QE*V7`A$W08`S;L4D=Y+`"8,RPE[^,Q`1D$0PU
M&9,I"U`$[I9)E%(L82D#R,#OINF/"?`@'HYA@!7[H`GF?=-Y!$!$*OQ1@"MP
M@@7H3.,[_+$)\$'!?'%,S!N,44^;H*`,(CC;_$KAC^#\P!2X>$4&U*2#0K0B
MH<)Q@/P<2H'D`"(&OH2@)CFIA`1*0)12D%\'0:I*5BIA`!`801RND+&;(($4
M%F"`#'GI2V`:`!2FP,M-F?*$.324IT)90PD.L!1!2,*`1M%`T/S1!$G_)/$`
MR`"`/QKQ#2,\81>96`4[2*`##.#@&Z7(@S\(@0-.U)('X%O"+B[A@F@$XQ1)
M.$=B;%$'.Q8E!UJ0!"M$8`0`R*$&5-A"&KA`#F+,XA13,$,9CN".<##!%_Y`
M13A8H1P=.*`U3&'&$,3RA6M,8@?/F`<>0,$$"P`B#*)Q!!/6L`,^*"P9D2@`
M#;1!&P'HPA^=^`4U4G$-)(BE)FS8!QM&L`YE`*(68KCA,:!P!6'X012ID(0>
M9-,460#A5:@%2A_4\,P@.-`H$4A#`(;*`#3.(`!%",$$:*&""A#7'Q?HA&RN
MX(EA#&`"8%B"&QHPBADL00<#\($JUO"&-]0@_PUVP$-B=##/HI@@"D\.0`!.
MP8HF^.,(+Q!!&S(Q!3?<`@#!NL(>@#"`!7@A#80`<FUXX(M&]@[/:6@#9980
MA"@8801B$0$`0&V3(@`@$!_ZP@Q.\0-`I$$'47"#$4Z0AE:`H0AWB`2`_1&(
M&UAB!(DXPA)FT`)!@(%*-J!%,?1P!!XW907=6$60AU*"-@`5&B&8ME#>\$=M
M`X4/-D1-`1S!GIJ\@4J/:<0+3N#MGQ1!`$S1`37:_1/N*HO>.3G"?U,3A%_`
MXA/!*-=CNJ$4?.<D#-XE2@3(<&2#WX05YZ"GPVU"Z22B9@U+6$5E*V.#7$A[
MXC7)`0>:;!0%[`+D-O\Y`!*4@')_0``7*FBY/Y(P"-A.'`"ZQ0K#92X"60#1
MX7MXA)]1WO&/@USD)">*$>;=<AF\P@<M7X(?O"!S+K"PY2`H.%$@4`(63"<"
M;\@&81K0B`@NQ1)[Z($:GB`*@0<E$$RP.5":$``85"`8`7/#3_-B`"4T8BEM
MF`4?Q+`)B?=$`1FX]U""+B#4$*$1@B%*"^P0`".(3$>BX(S"_=`%Y4RI)I\?
M3!ER(6FA4"(#1JA)%"`1XYXL(#@1F((37)Y2H>Q`#S5IA?P4<.N\>``6)C!*
M%4B!"7\4(0S\]8<,V(T3&,R>*$Z80NDK<PI-9-LH/`"'(-S"@)9!1N2LO='_
M)BC@G!7(XC%7B$19C/('9P3C)H((6$ZFP`/<'V$,)2N*!:1A;7_HWMPW4!>)
MH`6B811/(`MXXP]+8&TAT`<Q@B(#<`Q*LA1BP`2UYQ5L0`G.9AD@4`A&`0$<
MT$1$,0#>``L8X`RDT`(+H`)]<`L?-@4WL#83\`4;$`AU4`K*H@"]H`63`'51
ML`'#<`B9,`%UL`C*(`(6<`WPT`65``234!,$X`.&H`5NX`^"$`32$`3-L%-4
MP0"T8"=+D0CF$``W$0%-L`,WL`,$@`IB8`L>@`_3\`2($`^AL`3>,`:,T`2S
M(`1&(`N=4!-5``0^D$B8L`&T\G_^(`UD0!<UX`<Q_[<41G`/IA`<UP$%SB`.
M4G`*7:![?5`$D[!*@4`"/D`!8_!\A=`+C2`->%`!(R`$)[`"2>`%GI`*>Z<#
MHJ`*0%`&EO86?M`)(C@4%7B!_F->4_`'=@`&[/8':<!N*.`)G_`M7[`$-L`(
M;@`&5=4.9``(TT<8#Z!Y0S$`IE!N2S$*?5`/`:``QX`%-9`%Y!`"Q-``%%``
M#)`*B*`#X)`%AE(.(M`!Z[!<W+`&(!0)4_`&`,`,_O`$X.`/*O`-E'0(M>`/
M&L`&0<(*DM`!'0`,DT``#E`"5Y$"U>)$9B`)S/<^65`'_N`#P&``=L`%M`$$
MOW``"*`%U5`!*Y`+X^`$O?]0#6VP`H^P"00`"=/@!H,@<8CX!@$X%Q]P"$XA
M!O$0#ZA@0*HP!"%@`HI`!32@`XD@#)VG!;70`83``7NR"&$0`=*`!9B0`WY@
M#']P!.(`"PBP!11P`@N0#%M!#9.0=&XQ`HY@>$81C#AQ`XXP`:^`"#)@#Q+P
M(1BP`0KP`%J0/^/00\<P!PH`"#A@"7]`#XN@C99Q1.$W%`4034Z!`#3`#35Q
M!^40`H;`/OZ``=BP!T%`"A0P`;S@`OYP`!+P"`SPAZB`#G@``530>1,`"!UP
M`HX@#`K)D!,P".80/L_P![7Y"@*0`TQ0(4^P#5;Q`\F@,"`IDCD!/R:)DBK)
MDO[_X))BH0+IP``(,`E#X`\ID``[$`!8,`/^L`4\@0F^I`&9\`E@X@6MYQ9B
ML#=/40/3@`-T8`O^$)4*DP><U`31L`'^@`::@`<&@`RT.00>9`2-109T@`($
M\`M[\@(2P`)>P`M*(@M$('=GD5-<V)<6B!,\4"$;\`P+$`CB(""#$"_;<!XQ
M0`H%P`R'8`!?L`PLL@YZH$R0(0'%8!0_P$2A.9HUL0`X``AUP#X1X$(WL0"S
MZ0^,0`3>(0UC,`/<T)N_61--8`:=<`/W<)Q%I9S^L`K<("`3(`?YH`'3>9#6
M215T9#!-<0G6<`?=69(GF9(KV9*_4)[GF9[KV9X!4`/&_Z`*#3`'9^`//_`&
M.+$_E]<5&)`'K=,4'>,/WL`-9N`/&S`$";J@#?J@$3JAM*D&B,`"E8(7&LJA
M'MI)$B`###`.%1(#4#<7S9!,2]FB.)$(-P`))4!$V1`*_N`)#+`"Y0`H74`%
M#>"C0"JD_D"D1JH8#T`'WO<3$0`-/=2DI.D/*%`.+!`,[%,`1E`/1*0!74``
M6<H`DZ`%>N!/,+`,8MIY"_`(#C0,#+F0:[J<?U`+Q6<"8G`.!U"GU4D5`R`&
M9.4458`%)FD3&M`$,`"HX#FHXUFH"GFHZLF>"=`!_O``/9`(_></3F!X`V`)
M)^86'Y!S34$)">@/%!!!3T"J#_]DJ@X*H1)*H?Y@`0`@!DO`?+':H1\J`<ZI
M`GM`#,)X%B1@!E/P%'Y9$[]C!HLP`$#08/XP#))P`]GF!.@@G_X@!WDP`-(:
MI$-:I)5Q1!;G*T2`!E0AFN4@`T<C/V&`!35Q`"5@#G7@`8&@`<\0-'@P#RPP
M"]"``+W@#I70!E2P-">0`5K@#X[P#E`P`EN%`K>PG(P0"DS`/(?`"E]%G7?J
M%("0`6O;%#00#1[H#SE@!W_@!,R@"P8P#>(@"&G`!#%W"=L0)4#`L8F:`"(@
M"`DP"9_P`KVP<8.A"J!0NDNA"DE`3Z.0!7MR!J5`&Z1@#!_"H#F;JCSK!U@P
M9``@'D'_L*%$2ZN6``@"X`C#JP>=>19W<`Q^"K7`6@!+TYJB0PWH5@W7\+2L
MY`"LM07.Q0Q;H`!O@`-&L@[$L(N)@:1&,0-P4!6BB0.#$`J>X`]_H`I"@"N6
M,`FIX!@+<`V1T`=C("`H<`R.H`/-0`(_,`8;\"$=0`6&(`*I``A-``+!L`:9
M@`9%`)%L@`AGD"-I\`(^@`*H(`3!PA0U\`HB5!57P`>1L`$7$'E%<`Q[``;3
M@`='DP4PP`*X,`8A<`M(L`15H`IG@`%%4`>)8`,NT`-(L`<4L%>#L00.L'=.
M806ML`%J,`>KY`\GH`1C<`JH0`:GL0-(,`AM$`BS<`1V@`1R_\`(*6`&`(`$
M8P`)A2`-H1``'8`&;(`"/D`&;D``>T`$2'`#R:`"P8<6LN!+3[$&GR``']`'
MGX`(WI!?_.`'M/`+/*`F/.`"C&`3$+0([>H/;H`-$I`)X+`(_H`+VK`)UZH7
MB:"M1=$$)7!:X%H[6>H<!L`#6=`;Q``Q-?$#6L=W#M`_G;$`?3!47*6=/O$"
M6K<#1U#*9L$'9X"7<T$+*SL=&H!$\D$'TN'`3DH46$J;S@$&R;#,I'$#XJ`"
MDWH)SZ<7`#`'**H8,L`+$E`&.G`&=A`4'@`-+K`#;W`)^FL6#^`,SD(7"+`!
MKA`$"*P<%%!\15$,WF$5HW`+?0"R0O\1`94P"RJPT+GQ!Y&0NKUQA9^0PX1Q
M`0ZPHI5A`#X0#)W@=4(A`F@``#M`T%8Q`#%`=75!`!3@`,JK',T\)T&1($XR
M<0X"(2@''9W7<ACRB_C6(2G]$_-1'RC'">?7<OPA<P#2>"BWTD81(C)'"*GP
MOB!W"<KP<P;W(@^(<BF`"%X-%&V@("TW!6/P=RAW!Z#@7"U7"FP@U>W6(?4L
M%"40)2@7`4`PURAG!HO8<CQ0!Y8@<Q2P"=OJ$SW`S2BG`XK0UO1&`DFPU?A&
M",FP?2V7`J:@V3FQ!/#6=(Y`2PYG!PXP@2BG"'`-<F"QM#[!`"40.@YG`'+@
MC0ZG`+[0<"#_]P&TL+X3QPP;L-@_`0)24`1ZMM[LW=[N_=[P'=_R/=_T7=_V
M70DJ0`Z4(`+VW=_^_=\`'N#L?0=:D`H/4`D"GN`*ON#_#0@J0`TJX`8,/N$4
M7N%Z5@29H`C"C1,,@',>_N$@'N(B/N(D7N(F?N(HGN(JON(LWN(N_N(P'N,R
M/N,T7N,V?N,W'@1X+7,\WN,^_N-`'N1"/N1$7N1&?N1(GN1*ON1,WN1._N10
M'N52/N547N56?N58GN5:ON5<WN5>_N5@'N8_WN$X7N9F?N9HGN9JON9LWN9N
M_N8MCM)C$0867N=V#N!VD`+*$`D8<.=^_N?O+0(S(`%2T`:`?NB'_WX'N@`+
MB<#?B/[H=5X$<F`,VSC=@2%SJ]`-.^YPKL`'?.EPJ[%K$X<9FJ'=$_<&_M1R
M9D#6*'<)KY!_$\<")=#90B$`ZX=R:T`$_3EQ7S`'J(QR67`+&SYMQ&'>/R$#
MCMUR;O`,E>YM@Z`,M(YO,#`$!8AR<.#;1?$$'M1R#=`)B=)R<S`+,L<#9K#:
M*/<>PXX3&7#1+8<'NL#<:!$!)S"201%[.FT91>``FM-RLB".W]T(K^T33+++
M+8<?7+$"8W`,BR`$K^`'/S`*N."R0+$`1$`.-#T:`%!"5U$)-Q`$.$>\+9`)
M<)"D<W<&T$`)-Q$`Q@"VD($!$F!T$\?6(/\B(B!'SLAZ%7$@#,PG"+].%/B!
M\J2Q`%JPSU:1!'U%29Y0!6Z@"-43%!TP3C>A`#40UH\A!=;QVW1@[#XQ'^R.
M<AB@Z3BO\_=$]4+Q\ZGA"@[PK55A]`LR"@6P!$Q?]E#O&E1MU2@G`?`^%$Q"
M]@;G#<5=%3EO)FT0)6^0`6J@`*20`&QP#$P0*BF0!;[0#>QA]JFQ+44O+A0\
M>S,0]U^P!TG`!]EF!4]P""1``*=0"BK@`120;79P"!B@`(MP"9W@#&*0,;9X
M!L-0!M'N%41BW08'!25@VS]1)S)7`T20Q%2!+&,P!UM`1-[I#[W`#C\``S&`
M!!4``LBJ!#'@#Y3_CQI7X`"46A6X``QJD`2?D$2;KQ14H`K^<`YS,`HWD"-=
M<`65@`PW0`#7P"MRH`Y+`!`FGHV;,HB:#@8Q4OAC(N6`/X@1)4ZD6-&BA!$#
M+&[DV-'C1Y`A/Z(*54!D@0PB1*YDV=*ER!WS$+R$&$>8$W\K[OAKD:6./Q_`
M<LB0L,@?!#P^TM'QUR$!)9I1.<IQ`"%J$@HF(*2!XF^&(DS^7$6!,`[6`D1T
M6$3PYP7+`W]#I/@SDN""OQA*FG)A=8H+&'\"#AF0ZA%%-PR%%2]F#&>GR!4E
M"#"F7)EE`SES:=H\(;'GSZ!#B_JCH>3/H1A-GUHN["#(50J3&RCPJLB5_[\O
MB\!T2^)/!!P<M/R!>1MW;MV[>?<&:*`.B#]G@5A3)&&&Q73LV2-:*6$R9`$2
M'K2/GQYBVJG-PCI'_`Q4*%$T7V)`59+:*53R*Y<X*$(3Z^2(ODJA@B&D\8<"
M74:!*!!X7#FB.+GHL@LOO3K@P@M_AMF#F!;R\V="#T.4*@P25D(@@QU$5/&E
M%&2A:01K'H/H"@%\\:<385A8P90Q;)E'"C"8V,>"-+2Y;46/@IC#O]@D^JJ,
M/TI000$JDJ#$$RO\B24.5B`\;D+E+'0#@U)`^>2%5IH@#P,)LD3RS8\8*0&&
ME5:0I`$X\^3H`!)"::D`"\`XA94*(%*@BAG&//_EE!_P`$,$*`19Q`U!.F'A
MB!F.>$A/BB!0IHL_"2$AB!E,@*@!4<;@9(!,F."$%EW2\(8/6-YPXH$Q'HA"
MCC,`P>2%"]PXXPPK<'V@"5J(0.*&&-@P=;Q7;L&34VHC>H`.[T`J((@/JO76
MGQ^<H?-;3N/0(@1R)5JDF(AV8.59[08X)HUT.96`79$&@*:2>O7DQ)A^\PS#
MD(`_4(>''3BYY+K\,($%A8#?7*.$34,2!(Z(W[3@E4LR7O$*!S8)6`0T`!!!
MHQ`1N01ECT-$I0<3@T"C914K$:!0FCU$Q9<%<O9P`45T\-G#$MI825]TAQY/
M`Q<>49H\6)!X>KQ&QEC_;^KI5BF!)4&HP3J[%F"AX>OITG#`#K*G<V;LM"T+
MXPD3R1!"I`B\(..3/UY:XQU+5CI@#%Q"?"`#/5%`1!,%(3K!C&2,>!,-@EF2
M88JHBE'I(R>F8$O$'T!(^J,)`KA!C2#D6..C2H;PI6*0MNACVA5S*,&"E2:`
MYO./"$A@`YHFJ"(D!:+PIX`%NO+P@!NZS=,%9'"&J!`L'$<2`EP&64D%(Y:(
MQ9=9Q$DE$RKX8`2D/H#(MB-,"@$PQ$,:R4&D6ESP1Q1KWMB<HSSF8/VC-9Q'
M4A00L$0'7@N)[G@WG@)48@MO8L4YQO4FYOD/>M)#T@.TD!B0#*(5_@C`3@X`
M_X>Y,6`'QK/('RA!.9:8@6TAFD`IE@`_%TS`'R!@`@DWDK_]M0P$*P3)`$5B
MP(E,@!AS>,1SKA`$/1##%#RH`!]R@;8EP$(&`Q!#$O"0#.6AP`&S>,4*O)"/
M:G1B%2Z0FC\J((0Z],`6_J"$`V8`"ECT;3%WH(#10`((!WB`#%:!@1J"H8HF
M5(`-'E##[P@Q"S_P`#<`Z((K3#$,)_0@&7=!133T,`1#K+$0&<!$!_C0B@D4
MH!A`H`UY+(A!CUC"$(F0R`?G%I$_!`!G#*A$A_R1!"*,;Q1KR0DCK(`'[PS@
M!VTHI3\N$`;<Y8<*%/Q(_&1(PU$`8A%;",5#$/"R#_\4*G\&*$(H^A.`,;AN
M,G@@!@^`X(4*..$&74#`*>BP@B3DP7B="$`8O("!F4QGAR*Q73([`L2(%&`&
M].!).610!'OPP0E>P$$G#O""7_BC%=P(P2@,@8\CX`$;KF!`+MA@@"0XH``.
MB(4_=*"):?AC"EJ`"C&`80L5X$`%"TA`&!:#/.5]Y`C)2(0MC.&))GBB"B<(
MQ!TXT0DV<N((-G7#.-3`"BI((0)ZL,893/"!9V2('6Y@!!V8\@`LN($0T?!3
M6\20'^I9#R0^>(3P(N)*B#3A#''PA6.BL($'I,(5+<A&-7C`"6`080IF^,4'
M@H&/8?CC`+BX0Q<4,8LULH#_%X404?O>%Y+X^>,!]0"")>#QNW#$P1^ZR)(V
M^*"E.9C@%K^;@CMDX`]V+*0=PH/#(4X@@P3TH`*]V`40)E`-/YW!`0,H!C"*
M<#[*`%`D"#C$*PNXNXE,(1,9<H<5<L`+^=EB%U?PAQ[DX0\++.,+0+&&/UA`
M!3;X`Q-?P(`I>D-2?RQ`&9#PAQW>`9$:F$((*T!'#0XPB04J9G`B80$-+%`&
M.*A!`7X`0=\.\(EL$,(?#6!#-1IAAES0`@)T((,Q)Y0);?B##<T#2C5"0)P9
M^",8<#!`"XJA@?PLP@PB408IQO=6$$*$!)-*`0?0\((;^.,(-O!',T"!IPB!
M01V4_U7.&6*!`@:,8X,024"0/=0Y?W9$$I-`@QDP4``$=($1=T"'#S;Q@IY!
MH6>Q4((A:.>/`<A!`:QPQQM6L0S:T8$(DT%$#TP0!1QT1A/BT<0'!M`&'/2,
M-3G@``-$`H94L`2@$9F`'@PA@G)8%[O^T"YWO0M>\9+7O%2P'@I>,8)'D,(?
M\)6OJKL@#HA`0`F/D$%__QM@J;2ACBNIQ`=40($9`T(=./`3##2!`S],`0EZ
MB4@(..SANX!8Q"06!18`,8/H^:,(U^C"%;R1'PO^0"1)`,'Z%)MC?^0!%'<(
M`!B<D`8.9.,!,S$RDN?B!3#I90/G^$(.I!P14Q"!,/GA`O\S0>),B8B`#U&P
M1BN>H`2<1&0:J<"!"TJYA!Y8`1YZ\`<V.%Z-#LRDSW\.M#\&#1XN&&`3FKBQ
M94!`V9!`H`0,^R%T(6("(!"#"_XX`0XTG=WM=O>[X1VO#\I[WIE"@Q4-T`)]
M65UC?Z2`'589!1%(T`);`[@P!Z"%>$2";118(@\$PU,O\K$'B.R`',R00S1H
M4X5$0.'9%_APB$=<*&+$``)ER+8_S"`)8KA).VE=";G-#5=_9`$6,S'!&DS@
M!`^XXS5T.+)QVI+O`2C@'+/XQ"TJ%O"!CX<(&[@L#&4(D2.4H$/FN$2/,8C4
M6'S@%M:`2R74T;=X],(?8MC`&_#_D,^1`UK0'E#``'#!B4V<WC+*#4D$$#'E
ME1"`"Z_QAP(V0`,A5&,`FRA'$:R0`*![>NBA-OJH;W$"=KAB#:9@1A7FD!H+
M.("^EFB&C6PPA`@0(NNXILD#%,&21+@'$>B:'A"!1E@`!J"%,:"$L1D&4+"!
M;XB&%P@&2)F[NO,'%9`$%C"!1>BP"4J[;(B<\2"#&5L)54B"!SJW5^*!;Y@N
M3BB"(?,'$LB""F"&RHL0?$L.O=@!'DA!B'@&4"&/'VB3ED`XB,"$;2`$%%@'
M$K``<I"$1<B`;XN$.4"`6<@&&8@#;&B!+Z"'6SB%=O"`/@B%3B",X"NY0?,'
M/]"$(`"`_UGX`^0J#`+@@!S:B`+8!`IHB;II0P```#50!7^`@AA(`@S0A#.X
M`S)0@1J(`S7@!!A@`S1(`4Y0`U>`@4%``S#X@Q<0`PMH!`$@@5;0!0L0A"'H
M`A3X!%5X+0@@`BG@@1I0@$```%'X`S38@!J(BE6@`!D)B1,PA%P8AI?Y`S;H
M`4-0@0E(!`_0@D:P"C<PAB&`BB(@@UN``5Q)A!88A#ZHA`K(!"E``GIA!$X8
M`QK`$T:X!)$9CT30`G%;B1W`A1<RE$3`ACPXG0E(`AS`@3P8@`V@`"-0`J0*
M@VQX`AUX!EDX`D\PAR=@@6M(`!28`7"X1QS``G2I@2WH#_+@@O\.8(G0$0(Y
MB(+[F8-28(5'F`,&@((/X`(5&``9\(0]:($90(,N(``E2`9!V`(^*(`PF`4`
M0`)'N`%"N`%/P`!O4(,W6`.@1($."`8U```A((>66PP)@#F0L($[:9O*8`!/
M\+J6$8&.&0]/"4*6(`*UVH@0$`0\>3PW:`&3F(`0L`J."(0`B`@AB,M.&(0Z
MM(S1<S1.N04]*"4%\`'8H8@!H(#20P5X$3#""8D321&KI(P6H9D+&`(^N(L1
M%$&6J(%,$(3IT(!4>([GL8"@6H4U(4)J^81QX($E2($S@+&-:`)AF(1'X8$C
MR"?%F$.(T990R*G&5(Q5D`!4RIA50`/_5B"/%-`"S7P)%N"*Z>@`>P`'G[``
M$WB#%<B/!,A(;_F!/5B$';B?C5``-E`#%4@<QI"`$@F)'X"#P-S-J,#*TU+/
MPH``!P!+]XR*'C@#O9S/_LN`.-R(!2@!P<-/%G$1`*6)W!Q0FF"3WS'0EM``
M#KC-CR@`(I@9!6V)*O#-"66)"P`%B[Q0D0`1#@T)"BA/D#B%4OA0D6"`,VA/
M$_6("@`%0%S1C^`#^X11CT@$_0R)"N"`-:+1CJ`['NV(.G"$P_S1B4!0(K4(
M#9"$Z=06.C"0(ZV("OW-)X6(,M#0*:4(65B(*Y4("FB$_;2($9"`+94(%(69
M,34C1WC1,^4#_T^XSRU-@0R@3</@`'/;4J<X4X@8`S\8TBEE$]$\TP904I'(
M`+3!4RNPT#.MTKC$TRS%4W^8A`WXTHI0`ZT<4P;8`"+`TR9P!.'`4P]H4SS=
M@0Q@&8]H@ZUQ5`MQU$784SREHS\=TP:``R(#B0,H@5<=TT-=QS'U`C]8U#-5
M!+C`TP]H!#GMB!Z0'SS-`4S5U$=`.T^EA;LDTDH8U9`(``%P5+K8.3Q%@VG@
MTR?5-3L:4P.0U9!@`'TH`0%(5W5=5W9M5W=]5WB-5WF=5WJMUU+@`FS0AF.H
M5W[M5W_]5X!=UU+`@EK(AA@(6(1-6(7]UQAHAVQ0A%)86(F=6(I-5PYU4(5B
,Q5:-W5B.98R````[
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>16
<FILENAME>h03379h0337901.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 h03379h0337901.gif
M1TE&.#EA4@+"`/?]`$!`0("`@,#`P.#@X']_?^OKZT9&1K*RLI"0D.;FYGU]
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MIIV=G;6UM;FYN9>7EZFIJ=G9V<K*RKJZNKN[N]34U'AX>'EY>8>'AY65E0``
M`(F)B=+2TH.#@WQ\?-C8V-O;VUA86$Y.3G9V=G1T='=W=[.SL]/3TZBHJ&!@
M8(N+BW-S<WM[>Z>GI\7%Q6]O;T%!041$1%M;6U!04&=G9W!P<'IZ>E%146AH
M:&1D9'%Q<5]?7VEI:<G)R55556UM;6-C8VMK:U)24EQ<7&%A83\_/TM+2U14
M5%Y>7EI:6DE)24A(2%E966)B8D-#0TQ,3$5%165E96IJ:EU=72HJ*DI*2CT]
M/3X^/E=75U-34SDY.3HZ.DU-330T-#P\/"XN+C$Q,3<W-R$A(34U-20D)#8V
M-BTM+2LK*Q`0$#`P,"\O+P8&!B(B(AT='3@X.!X>'A(2$@,#`Q<7%R<G)S,S
M,QH:&CL[.Q\?'S(R,A$1$0@("`$!`0("`B4E)2DI*04%!2@H*!P<'"`@(`\/
M#QL;&RPL+`<'!Q86%B,C(QD9&145%0T-#0P,#!,3$R8F)@D)"1@8&!04%`X.
M#@0$!`H*"O___P```````"'Y!`$``/T`+`````!2`L(```C_`/L)'$BPH,&#
M"!,J7,BPH<.'$"-*G$BQHL6#5[:$*A2@H\>/($.*'$FRI$F2<D9I*G.QI<N7
M,&/*G$FSILV;.'/JW'E1Q)P0`-2<'$JTJ%&/:G`QTP2#I].G4*-*G4JUJM6K
M,$4`4<0%JTL$O!(U]4JVK-FS:-.J7?M0*U>V#\&*A4NWKMV[>//6==N5H`DF
M:$XX3(%#!(0K#%D\*O)F8(+""5_8^5"`H=RQ>C-KWLRYLV>&?`>JB#*D'PU*
M#H^P\H'$4Q&%$B2(V()B8)Q0;!)*B<:HX>7/P(,+'TZ<:FB!/C;UZ9=`"@0^
M#09\\$%!0#]$%&3TZX,E$18]7@H\_S+R0(>6"[4%4C(78X:*(Q*60`CE`P*0
M&S.,S&%RJ%^39(6H@,<%0A21@P0+U$#0;\4UZ."#$$:8T'']*)!,$P/=004-
M&@B1BB&3+!!&%IYT(0<8?_@`R2)9&'%&(SUTLD@'VC'WBB`C+'&'%F!`,LD=
M800BR@^3S"+#!/X!V(\F0S`"1A:#:.'$@F%A)N&56&:IY5Y;]=7/!8H,,-`+
M7@#0R`^,1)'*%56$$HD<GDC0B(JIL,`',1WTX$D`C-3(@@EM&,#)"%XLDD8'
M<T20ABQ[I-+!0/\5T@\1:BRR12QG&,3@EIQVZNFG/%%HQ@:E9;"&#:W,`HH/
MC4018BB_?/_"1AJH)+)"&'YTH0H`1%"A`)\U%D)#!%_TX446CEC2R0J+\,`#
M'J$L,M!NE-3`B1J7"'$'.E$L<8LD`FT*ZKCDEFMN0Q0*9,("#O1CQ@QQ+,%"
M%8\(4$`1"3C01!%)H''%(0*8H((#!1P2Q"-/H"'0"4D0`H%_,%QQQ0TLB`"%
M`X=4D0$4`DE6RB,?])&!#OV8T"X:[?8C[KDLM^PRI^ENMO++--=L,W`Q:S;S
MS3SW[/-:.4/TP`+]!-%(`UBHD?)"8^#2VT`?U$C1SC]7;?754`7M$`0(_)!`
M)&#T`T$)!9B`PQMH9!!!`OU4@,,2_HDP2V^(E**":6%41#76?/?_[;=+6C?D
M2"$U`(')!P-1H(4<C>P!2B*BE#(%((OT,(@;N@10QQP*;-"/)!SH7>7?I)=N
M>D2!,W0'$3O488K45S`!PB1Z\JE'$EQL,LC1HO2V@"JG]'.&!CE,/?KIR">O
M?.H+2?!'#E"@0@!S<4RA2RRI&&%(`'XPH(`FK'2AP0JI#.%(*B"$\@8"I1D_
ME_+PQ]\W\PI)X89V4'S00!DUF(&"!!^P@Q$<,85#/$((>-!#'.J`!3NL@0D2
M0`$)NA`V]UE)?AC,8,WHIQ`9'``FA!`"8BRHP1*:D&4<5`@<X/`2%2A(=.\[
MH0QGN*44PF5O-,RA#G'VDZ`<Y8=`!&)2_Y9RP1T:\8B;N<(*9N$+`#CQB5",
MHA2G2$5;'(,9P\`$%;?(12H*(X9(#*,8[0('+B"CBVA,(P"LB$4MJO&-46R&
M!A0VQCK:<5P,L`';[LC'/B8OCWOTHR`'B35`$O*0B.29(1/)R$:::Y&.C*0D
MM03)25KRDL6I)"8WR<G-:+*3H`PE7#XIRE*:TBND/*4J5_F45++RE;"DB2MC
M2<M:5F26MLRE+A>"RUWZ\I?]Z"4PAUE+81+SF*PT)C*764IE,O.9G'0F-*<Y
M26E2\YJ,M"8VMSE(;7+SFW?T)CC'&49QDO.<.C0G.M=Y0G6R\YT8="<\Y_E'
M/=+SGN6T)R<AX/\"&HYA$,=P(QP'2M"";A$3R<@'+@S*T(8Z]*$032,FAE$.
M9]@BHA@E*`^L00UP\""C((4B#YJACF9\-*0H?2(FBO&-+*;TI53TA1]V8)<3
MC`!Q#7J!$H)#"#=L1@0K^"!G3$"#&-2%!2T@&5Y*H(`4?(8'=ZN+37%:')T&
M!P5$^&E0.T-4H](%J4J]"U.=ZAFHUO2F#K(J<+"J5:%NIJM'36I>QOK4J-)E
MJFG=Z5JSJAF@NE4S</VJ7)?:U+J>E:K$4>MGV-K7K0ZUJ'$-JUWH6E:[P@6O
M.=7K8OF:&;]R%;*"E6Q=*-L9LTH5K9F]*F?UXMG'>A4N8)UK82M[V+S_JK:M
MGWTM6V)+6+*6UK)LP6Q5->L9QG;6L6\%+6P'*];9_K:VJ=TK;ET;6=GZEC.F
MO2MJ#U*`#[J@"D$02`'$H((QH`!Q+C!!6A1;W-4*!%\",4,?&I.#!^R`!`-(
M@D!VP#'C(!>PRMTM<R?K7.P"=RW"+0@)+)&)?N1A"&8HQ!A000)1H,$3@'!`
M#IZP7N*:H0MBZ$<.+F"='-Q!.TMP`X>A\("S&'<@*U!%/Y*`!S[T(`EMV(,8
MG-`(.[P@`>&M2FL)TH<M9*`?+`#"D1$!A#*0@`QNZ,\$CG"5P!9D`(`@`W.$
M@`(HB*`."S@!#FSP@GZ\(`X[X:U!`M&`QHBA_P</>[,*)D"!!-5@`"_D"6D-
M#-V#0($'_:!##-[`B@&D@00CN($A`#$`(ZB%O2IHPPK@D`5$/"(*7W@!(0#Q
M!3SHHA\_$(Q97BP0!G"B'T^(`@D8H`8$N,`.4;@$`\*`B.()^;\"2<$9[#`&
M(^CA!H'8<1!.\0,"^&`"."!!E0-,D$;,H1\<B`$0+(`%'%1"`A38P`$>X`0S
MI'G`!/F"%OIAB$/PP0D:0,0>JC`*$W0B`G5`TE/V/)`U"$8%,'AA$.XV@22,
M06S*QDIV"2(F@0@@X"68@=@P@R&>)+@@?^['"'``AU8\00Z(#H(`;O"#''S!
M"FB!=!L"D8)1]&,)P_\0!9)-H0<PM`!C:"%U,$\MA.!!(A$*Z(</U(`!*SS`
M"GI8CG__FNLS,($[$/`"+2I1`4@THA1R\`$:`ED5*Q>D$6W8P18B8(4MM``1
M!Y@#'2Y1AK?Q1,T%$7<_-&"!)?C`%1%(`AO\0(A`5$(*`7<*O?OQ`$R(B08/
M`,(8U)`"&NBZ`V+ZP6L$?N`4J(.%+9A!`/JA!1C8H`D;\`(3^M&`ISR<(!%'
MP0_>0.%)3+@?)$A"&?BP"%>$G+B1)KG)4:[R0]1B.VLPP@<,`?*RR-S4_2##
M"B)]!CI`04H.EH$>9@$&$0S=(+H^.A:2OO0*`.$"<%@#&:P@`0(0PBI6;W;_
MUK?>]:\WH!(#2`$26("$5)1`)V@/][C9[G:X)V$+*2A!'JH@@1$((<\ZL7?]
M<`M2(`"0T`^4D`!^``4VL`=JX`=D@`3]Q7@'@0EOH`*=T`\MT`21X`)/<`";
MP`0(8`%TY'#;I6!!``\%,`9?``01X`(8T`!UT`\[$&(.\`=J\'H$$6G#UP4.
M\`0T,`4.<`-3(&(H4`!I4`F:,&KN%4RWMP0-(`-3L`0'(`!4T`\I4`K!]PI`
M<&!.,60#H6MV<`(]\`!UH`8H$`%(0`?]0`@L\`%3L`B94G7,-A#.]B74)FTP
M$`@,T`\#P`)]\`6_(`3P!VX#H7:#@`8]L'MK@`%"_\!"?$`"N1`&@``W>E9@
M`W$+(G`&2-`/JH`$`5`#-L``<\`&>D`(RD=35S%P`X$))V`)(]`/0R`#K3`&
M01``2#`%:-``,'`#3O%YP<%>,R`)I6%]G0<!6A!B).``)),'9U!P9$%J-5`"
M-Z!>\D5?]D6#KS$&#N!\SU<0A[`(%,`<1J`=4E"._>`"B"`%_;`'6F!K5!%^
M`M$$G7"%*<!E7@9F"@<#5"8#;"!O.!%_A^@)2"(`1H`8`D`!E7$(2'($*]!B
M>H>)`D&`-P!R'K`&@%`#E,`"_?`&0E`"-A`"UT45K"@0%@@%DR<*,]`))'``
M7J!L>:,*(\`2.P&,P,%>G?\A<W<!AIDACVDAD'`A@+]09A=0"F$P>"D`")7Q
M`W"0`S8``FBVBEZ("<X7>9/G`R80`,4C`-Y6"SEB@H@U'#C)&3II%SRI%SZ)
M%D#)%GN7!S=P""X`!_DF$/LF$!"@;$=P!7E7%25Y!#+@9/UP<`*1</-HE]"H
M$S;Y&6.Y&66Y%[B&EG7XDX88E!*9&26I%HGI&8NI&8U)%V>9%VEY%FNY%@*H
M%Y>9%IG9&9N9&9T)%Y^)%Z%I%J.I%J69%Z>)%JG)&:NI%ZW)%J]Y%[%9%K.9
M%K6)%[=Y%KFY&;N9%[T)-(\)FI&IEI/)EI5IFEZ(FB<HEL25DTVXD\\)F]$I
MFM/_29K5:9O7B9O9*1S+B1?-J1:_:1?!21;#B1;%>1?':1;)J1GK>1?MF1;O
M61?QZ17S>1;U:1?W61;YF1G[:1?]B1;_21<!BA4#:A8%6A<'2A8)JA<+6A<-
M>A8/"A<1>A436A852A<7ZA49FA<;2A<=:A8?RA8A:A4C2A8E"A<GBA4IBA<K
M"A<M6A8ONA8Q6A4SZA4URA8W>A4Y>A<[RA8]2A8_JA9!2A5#BA5%NA9':A5)
M:A=+NA9-ZA5/FA91.A53>A55JA976A596A=;JA9=BA5?BA9A*A5C:A5EFA9G
M2A5I2A=KFA9M>A5O>A9Q&A5S6A5UBA9W.A5Y"A=[&G/=_VF6WPF<X2F;XTF;
MY6F<YXF<Z1F,VTF6C>J81`>9NK46@TH5A7H6ARH5B<H6B^IBG>J9CPJ?D2J<
MDTJ<E6J?EXJ?F7J3F\J8K0H7#L`&1$-=H65=AI43`G"LR)JLRKJLRXH"H[`"
M3\"LTCJMU)JL,A`!"#$!V9`),)52F,`-K7"8E*8-%]6M*,4-44`05O`,YHI2
MMJ`.NJ!P`I$#J``/Y=JN#?4,Z;$+RG"O^-I0//`,D<".,5&J9G&J$!$)0;2P
M#/L1+>`'BH`0#A`">C$`!("M`U$!%'`!>H$!GC,0$O`H><$`"!!($\`!P<H6
M&M!Y_>`!G[H6#T``8L(`:4``#?\;`(5`"JW`""UPLR5!"3^@B@+!`3;KLQ^1
M!LI`"49;$H&I%P5@`!)+L7EAL1@K$!K+L7GAL001LGI!LB:+LG2QL@+ALG<1
MLV*R"F#P`=6ZMFS;MFO[`7?@!Q5`$,,0A6Y[MWB;MS(0#4V;%T\;M15[L01Q
MM1W[L0+!M2-;L@-QLBF[%F+;LB^K%F;;#R!@`7:1`0KP,`-A`)61%P#0MWCQ
MMP<QL8%;M6VSL86[M2*+%UZ[N&`+%X]+MG8QN95[N9E+$)RK%Y]K'05!`%D@
M`)T@`V'0`$B``"@@".G:#V-```*``$&6CA>`"PCA`N^W$#4P"%BK$*)K$*0+
M$WF0"AC_(`&FT`]4<`!X0`53,`Y``!-4.[BH2Q`9<`J.0`6D,`-RP`!4L`?$
MP`QL8P&3P`7:(`>&8!!E\`D2H!`)D`I/8Q`4\`H+H;4@N[H(4013$``+4`@N
MF`5(8`0_4`P`H'!%H`G=8`D[T;H"P;@0(02>\`,V0`6.4`EU<`$+$`+'('1F
MP`5;L`"78`<#P0:A$`;!X`41$;N1&P=R@`4+``H1$!M@(`04L`Z-P$("<0&/
M(!K5T`,6T0&1L`8'0;N6VQ!W(`<WX`=AAP&.D`6EH`VQ@!AO(`R;X`$MX&TR
M@;F:*Q"Y:Q!\T`DH$`B#`(`)<0+,(`0/H`12G*U9(`.C(&H"_X$*AM!/#;&[
M!3$%GR`0:%`%T(`X`G`"@N!5>X`,4C`#[V<!7,P`#98$')8$,@`!B#`(N3`!
M,M`$[]<P9O8$$+`&8^`%V%H&$T`"9;`&<TL0VUL0W>L24@`,E>`??)`'[Y`$
M.^`$CR`.EN@2[9NQ[RL0#P`"'Q0'![`"2K`#<<!4R"`0*E`!8A`/2=`$.3`E
M-?``1[`$&H`%(N`",)`!,^!4</``)E`#::!R+-`4-4`(>V`!9+`'_2`%E@MD
M\BH0$'RX$GP0%W`++)0$=O`'NN`"4O``M!`+`T$`RZ!P4)`!90`#>8"%,*`"
M4B`$B)`'23`#.!`'.:`'$9`"@J$#5O_P@@IAPOV`P@Y!"+2``?U0STH`"SN0
M!R>P"J_07Z0@"C2%`XC0#Q'@D9WP`ZS@"$>0`;<Z$$2,$*:0!H*!`S'@"F#P
M!DF0!]?P;+EV#5D@7G%P#0=0`.Q2"A50`B5``DN0`2Q0`"3PBL7SSW-["`20
M"NIE$%[<$'S@"F7F`%)`#5C0#SC0#]6P`JI("ZE0"O?0!P50!B[``@)@`0+P
M`A:P`W+I`CI0!DF0`WN)$'2,NYU+$$V`#5%Y`"X0!$W=!VWG;44@`XA1!&2`
M"0Q0`E[@`D4@`#E0`0(P`S`0<%&P"CD@F"6@,(6@`"10`I9;`C`P``U7$)!,
M$*W0/JAG"(+_\`I%L`.;O%_"0`Z`T`]>X`5#L`9VP`,#,`I>8`KBC04V0``T
M<`+#L`&-@`8C<`!6T`3CL`#QT`]^,`1&8`3E(`"J$`.A&LP$,<PM\0C34&8"
M<06K(`B3T`]E`,WL*[C4G+W]8`780+#]8`'Y\`Z.0.#A/!`]H`W&W0*6H`EZ
M0`J-@`&B$`ND8`D'8`X(T`O]P`=R\`,+P`5_<`A14`*4``91(`=RT`.XP`(H
M*PM4,`0^/1`+W0^(BQ!00`LR-A!UX`[EH&6OH-$"P='RV@@:D`6CH`(8<`88
M$`'!P`%-X`-`$`6+8`5^``*G\"14,`*G=M.*>\*OVQ!<$`)5`#7,_U`/(98(
M1^TNTG#>`E$#4\`&6&`(?_`#IP`*<7OH#9'5!A$'W^`#!)$&@F``"=`$Z6#6
MS)$,WE!FJE`*R%`'#[`-'Y`'H9`!IC`%B.`*C?`*CR`'6S`)&7`'%+`%E$`'
ME'`*@5T0@\T0H\`*WM@/1D`/TK`<[`#9`K$*II`*:?`"'%`)!]`#Q;`'_%`&
M>S``/#<$'W`,J3!Z#)':F[O:`X$`PI#0N8`&R_`!>K`,''`+))`),U`/.X`+
M2U`,5A`#OT`"MM#:8V``"'`,C=T/#H`.](`'_7``8B"S0T``4^`#G6`#3Z`,
MB780V3T0H\#=_8`&"W`,H>`"X^V').`&X?_@`SSP!"-0""C08&Q@"+.P`^30
MD9YPW[_@!"?P!W*P![,`!^=P`M/0#W_@"9FP>6C`#)-<$`X^$!!^$7G`#".]
M,$RV#8#P`AS^$M-LM=7<#S+@#%S<#W`@`C-`"N4@`X6PX@+1`]WP`C9`#`O@
M"8S@4WFP`0'P!W70``"``L90!!KP!5B`"G2`"F[0`C]`#1)0"!<@`6T@#6X`
M##_@`QS`#@1MY8:+Y0UM$)>@64T``0F@"-Z0`;!`YOU@YHLL"ED`"C77`&2'
M`,W@!"KP"!I`"UXP`K]B`V=P!S8@*8#^M8V[$%J0"'HP$!#``D00#8@0"HW>
M#ZT@!P-A!9J```W_(`EG0@1&D`C"8+H*X>D&\0Q%*!!L`P/H``J/H`QF?01U
M<`K3(`8.H`A)L`P''`RK`!!+CC#PU:7/JSFQ\&0*T@](K"\'>AGITFE`/XP9
M^ST@<!&$!8TA-1HBE2*CB$>9,KGXMF('1EI$KO0+Y.=))BC2-@R35>2.ICD^
M8O"8(-)HOPP*(&@T4$`D$F-F,D:0$.T'&1X+6D&)(4'0F'UO##"(\>N-)4A?
M,]W`Q(!$/Q-%``E*PH/)D``!1LP`\FF$C%9OC0+H)R#D#605^L$PLZD?DQ9C
M!,7`N.!,/P("`FA^LH='F6,(FF;K]\93%$0`G/2ST^(&H"+G3DSK]R?`_Y]E
M3/B^2A*R@(&C#D(<)5Y\1B-._8J0.3*J'X8[><0M*5Y=Y``"$316H'!!8X)3
MB_K-X./%2X)",`@@T]@C7@HZT:Z8:/$,!I]&M^LT`(#"6C\?LD`BD!48L20-
M,CQ@(8K>J/@%"&.N>"&/04C1"(,--)*@@^I^4,*2?J18P(@/8-@B`DUBR8B`
M96KHXX$AB*`AE#RP,"(+,V#`Y8LC+HDE$B`"4$`!-LK8X@47JF,`@00RFH"#
M!:S+*`X0MNCGB!GDZ*&)0=!@Y14H,,IB%>V2^,$`,/JA8(,?B+#A"F",D+(?
M#1K`R(,#CAHB%S3ZZ>.)%1RHA((\OID#HQN.Z/\'&$66,.`#<-KH!Y)/I&BA
MA59HL,"4.4QY()-(4!"BF05.^",+0TXQP2B./`+).D22P:&?"':`98T(1NCG
M&I=@DFFQ0O@(X(U%`@FD$2CL.*:/%"S`I"@IDUHJHZ:,LF<!$J!@`00$HJ$`
MAZQ:Z4>;!<:)HYP7BK&BK'[D84*0*VQARZU^AECM$S.&T$P`O+)@)1(-`!-,
M),(,"PF-!F18%0D!Q.AG`0*`P&B)&P1XHA\7O&B(CQ6:F,*",Y9HH<DXLIAA
M"\K&0.&'?G088HDA3/@"$A*^(&,,-A@0Z;?@AIM3RC=B0**4'8K`8`%LO5"`
MY9^KPTZ[C+CS3B,5GD#_PH(*(D!A@0?,4$.20S!J@@(%GCC!AQ5JJ$`")JZ@
MPA%(K/C@`AS.>&,&)#*`PP@,*F"B(2H$$227)Z@X(@PVS"@#@[`SPE!##JM;
MPHL%7A@#A@7X6&.`-%98HQ\1W.!"AIP=J(,.+?I)0@+JX+!B5ASPV&,/"AI`
M0@\?SA&DEB:*6[))C)Z,\N<B9#@`!A<>^:&!(QQ8(0T6,K+`D3V:)$..$G"X
MPPXPK+A!#).DK//./(\B0X@]S("`#";L@..#$8!0P0$@'GBNA3P>$,*&#TB(
M`Q$7K,$*;2B%$P+Q`3=$``)4($0_]A`%'?3#"$;`PTQ$TJI^?&1.!;""'2+(
M_X0%8*`&CP`$`F;0#S-L80A]ZH<3)*"8(YCA"$DX03^00(,$5&$+JXJ64ICB
M%)&HX`<+R`"M#N"%,GP``19`P!4<40(;Q$$*7:!#&8*P!3,<H`0(0$,6+)`%
M/KR%$#)``G7Z<0`F]$,+8&B"#P20,!N<<#"%:5H=[5A'GAE%.'?D8Q^/\K3M
M=,>/@PQ)$GB$`S^\I#J/R\B&"-DT&:2A!`,+R0Z`P`1";"%ZQ/F=DZ#T2%!6
M9WS]P%,H35D<#&KPE*O4B+1^R$I8AJ1@L:1E/_(HDCW6$I:`C)H@=3FG)LB@
M#W-B)$8<^4N,0(`%4B%.$4KQB"3YCDF>'!XR_3C*4O]:\Y&I?)4V_>A*:@'1
MFX^<)48$T+LIA.$&HFA")!Y1QQTH@`+$<<$>LG"#+*"@%GGH!PDBD(:CU*!\
M&+EE2'(9D@I00A;OE$(QHD#)H^R`"7^0DTA<,"V+X@`!3>,E1J26S`@VX0<'
M$$`&/G`'.U;A"XHIS@YB8`04?(`)8<#(#,AP$9$4P00UP$@Q^W',X)5A#\0H
M1#17>8-`"($*,I"$)#"2!Q]`+200*`'P,-+)X'TR(WG(PPL<@01((.(HG:#I
MSP[P!2%TP0*BD`!&+*`%'H8D!Q;(04:PF:<GK`H#8:C#'=K0B"K4<0R)N(%U
M*`"$.@2B!QO@)TUN,`:CB*#_#"?004<R")('A$D,0K@!(2IQ@"+4L0QLD&-Q
MVK"'SAI!"#Q5$TM%TD!P8J1:37/$!&(2AQAP@004N$$8G/`6,4"V"`*(I@H6
M<8M-#K*<2*`I`3)$@@#THQ4-:=H)*"&'H[C@!\WHQQ@68`4>K*8?<1AH2$CP
M"/$0%#AZ]%DE)9",/_3C#L=P@Y228`L8A"\D);@$<09@!XYF)Y#>20`;\F""
M4#CL"6F0`3KL>`-%Q-4H!1B!KE`0!2\((WA:$*](@L"%GF:HD9'KQQJH4(47
MN`*[K/Q"+"YBAQ@8(A(820$.''"4'ER@AE>=9E:K&8$[H`>[02BB44"@@)^U
MP`,F_Z$`&H*A!HRL@0QU-8I?(4LG.Y%2!C[H03\ZL`BG:.$`B0!P'8\!B>IP
MH@4GI`(#E*"'RHCU*'*P!"$"X)$E:*H?MY#8$6PP@DE(H8XZX$%OBH.)/"U!
M#03H`#-!(8*CC,$/>R``1OLQVSDQ0CN]8`1/@_``)<!A`H_M!S/JD"2^11,0
MQG@#.>G8CTTL!1K4[><O$`".-3!A"ZP0`QVD,01&S&`4&`C'$T9A!"88`A;!
ML$($R)&$?6!$!;V`,D:*8`PN)&.*L]#!.)`PC'YP`1(&F($9<)&1@FKDH!JI
M`1^Z`(TK<*$55%#!)8"@"A-(`Q"V2,$@9H$%8*"A'6V8`/\G".`&.'2"$6[P
M=QYB(6,VH&`:=_C#%G;!A'!HX1-0F$07G-%-C72T'Q_%P2[ZP09X8.0$)*C#
M.S!PF1%QD1&-H$$*#D$#2JAA#5RPA!%<48A!-.$,`?@"%C3B!7!$[R4^H`8%
MX&H(+ZR`$X$@@QDD@`4D%,`&#?$I4!M`B7X\0L4800$L&!&)&TP@#%CX011:
M(00^5$(2?CC#'!3!BC_HX`*7N`73NON*6FBD$0;8`!:"L`LZ$$$1DWB"`#C@
M@2]<`649P6H_A)>1+`2B'W2XAP%,L`1:-(((0W@")YAAB5/L(A(^<`$>%O%6
M77@`%8'%R`Z600.-J`(4B;`"'G+_H857K,(#>:@$&VBQAR2HP7Y8OA,BK="/
M;=`A(U)0Q2AT80(PA.$5.-#%)%K1!B:X812K,,(*:@&!7XS``##HPB0X`0I#
M*Z<;`QU`+T!!B@F```P*@$4OLE`!&VB$28@#/;`!/BB$BZ"%#Q"%([`$:8"!
MC'"#6J@%`*L#+J"`%'@%.A"%`G@"*P"!'J"`!0`"'&@%0[@`".@$*^`$!MBQ
M?F``9\`I%S@#5B"<'`B!'F&#74`#![`#`KB84W`#2K`T3).23%@*3N.I)WB#
M:M"&'T@2/6B&$("#?JB!36`M0/"%)B@&&S@&%B@".5`"%*BC62(!0<"(6<L(
M$F@%`0"`_R>`@1Y0@D)@`DQ@"PO@`1>`!C28AT&8`4/("T"H@6QP`=+HAVFK
MMI%KA07@`3*H`UE0@6G8`=K``",HAA*`@%8H`_7J&:.`@QA(`&S0A0@0!C=P
M`3KH`GRH@4P0@EDH`SQPA1\`@1G@@0=(@4"XA&`X`%7HAQ?P`5H8@TD0$C"(
M`'DH#39@!1U0AB50!C2(A@*0!4B[#@'K)2KHARE`!<QX!HU`@F)P@F-0`1N8
M`UF8J+P0$C>@`B((@VW(`R30!!](A`?(@DCX`@W0"!_XACC(""J8!2NPA2;0
M`#"0ND`@@#Z0!"X8#CD`J*XC,360A7X@A+'K!QE@A`!8!.T!!?\4Z`0&2(0A
MR`%$:(-/.`4^N`0U8`14Z8%&^(",&`/`TXA+H#D-8`$-D``%&`%#H`(30`(>
MX!!0T#P>LZK+PXA=$+$%.`9?L(,-&`11D!,`L)!$N`-0L`$C4`,MB`(:((``
MF(0.LSW<RPA9F`-:N(`@Z`0AF+I0V(,RL`)[^`(X,(7R&:5)P()1X`/HDSZ,
M.()$H(-5B`$<L(-TL`-*^()(``,/"(,[2`,[B`9LY(8/$`8&:`!/"(`->(&,
M*(+YRX@E^`0\^`0TT(4IZ((1"`!&2((]D`1AT($U(`8*B(*+8`5/^`,(H(!F
M6+Y^H((_7`0=.`,?`(`*2(<UJ(8)8(?_)5@%),@%56B`,I"%,YD!8/@!5S""
M5L,(-V@&1<&(,PA-#EF'`O@$*YB%!OB!LA2%,5B!31`%U[HT<;*.#/@%).RT
M?GB"'*@!#Q"$/*F#2A"$=^H'<@BM?EBU?I`73+@+!4B"TIJ3<H(&C!B%(<"(
M`5C#-GP"+[B$`!@".KP!'NB'$7"$=\(#<"`$!0!$023$?@B#&<`"GVF""0"`
M16S$1XQ$=^B'4Y``_((``#"C=,N(=<N(]X$#2LB%(D@&-A`!7V"!>E!%5G1%
M6)1%6WB`&)`%1WB%#]"'%$`#+0"!'.@`87P`?.@'.#C&9%R":JA-))"!/YI&
MCZ*`:LR"P.,#_W-0.1(0@VYL!YK8@%U``=N@A#F(`%`P@CB(@U>0!0%P1WB4
MQR_HA'X`'AGX!#+HAY?X`G[T1X`4R!%(ODEP!0SU@^<0,6,BL3,PA8<<NR/H
M`DJHR!B8@DFP@_Z:A&+8O`"@`4X8234`A2,0`@6`0`%XE4%0@KJ2BDF`29FD
M29M$TRS8@/[:@"F@O!ZS/*WJ!TX`NQYX`@=@!"I@!*4\`#JXA2Z+!:CD`B0X
M@RG(`@3XT$58@""0,U(`!<6`M%L`2[$D2[.,`4:H@UZX`"A@A3(;I0T`@ERH
M@WZ@A44($S/0@5C02T+@A"?P!B$(S$C8@A1@`T!(`2C(`&EXA&%HS/_'C,P.
M<`([N+%^Z(4T4(%^N(('4(7-[,S/#,U%8`%-D`!%Z`,3T`0\D(.+0`4/Z``1
M:`)G@#.,P((/M=D_<`-,Z,W?C(!*P``%B(,:2`1%0`%8)+?F=`4**(`F>`L'
ML`=#<P$$P,Y^T$[NG`4OT`%#T`!&.($NP(1+.,\BK(X7`("EB(4.V($U,($G
MB))%*!(9L`1<2`2>PH8PZ4]C^$^V6``*N(8"6`/D_)ERB@0>L@$Q$(`2$#8!
MB(0#*`-8N!0D8`4!J`4S8`=,``$34`"C,X0LL(&'TH`>R`0TN`4H:P,?D($/
M$(%18()(J`/?TP-<>(%,D((+.(4.6``(.+?_360OHV@"#G""''@""S"`ATT%
M&H"%4B`".ZB%#U@"6'`#48B`71`"-%B%05@$%;B#74B`"""%*T`!72``+,`!
M17@#%0B$4P4&)WB%1_B%8:"%Y`HY,QTY0<(!35`..M``/0@"-/@"9W`$=$`$
M5OB$6+B`79@$(I"#!L`$#L"!`=`$-A"#7C@#`-"#-FB%#H`%0.`%*LR85&`"
M`3@$20"`,#"&*E`$!?@#6I"##>`#`QB%34B!"^#7A:2\`"`!`3`%0%@`-^"#
M'O``/V``%V"".2B!?A`#IYK(4Y`$(P`$-S"$`XB$;4`%1X"%1LB(.EB!#[``
M"(@"-<""*)"!#0`#_SE``"[``SO-A0NH@BR`P)^DIHR@@Q5XCC/H@5*HS1'P
MA#/P@#^8`B<PA"EH`1`+`@1X`158@0TPA#8(@:E1$S"0@4>``@V`!#_P`3%@
MA$IH!!^@A">@@"&(!2^0@2PP-&Q"I/*A`R,0`$30@U.HA(RE@RA(A`8@@$KP
M!"R`!%EPA@V(`3'``C2(!#Y`A1YP@$%H!$IP!&2@RYV5@!M(`AP`!20`8`7X
M`BY0@S/P@PEH`3F`A0>P`BJX@2&X"$WX`4J@#CSX@P.X`0?X`U+8`!`XA,5#
MA@^0!QSH!@%(!4;P@P?`@`:(`B-(!MED`1H8`F[H@E%H!4%3(TJP`B9(`/]1
M\(`-``836(<;\`5($`8$8`!7T(17>`,"X(`_0-OTM(XC[(<\H,#`BH![`@,(
MV("P&01C.`0IB(16,RYBL`#,905)"><9&((>@"CB*"<TV"@[2@(;N($1\$GB
M.`$D@!8[VH$]$`)T6R]<:J]QJHXU:($8"(14,`J1^RA$&(3SG!,X4.<O*5"C
M>`$O&*0/"S'(R8@=J`-'F!-":`/*/(I2H`+^"@`=H#4^DH"V0E:@7%8XJ`25
M?"0A:"`_ZH*+P0ALVH,'0()\K",,P`!"R(0R(PX2:`,)NZ,6&``6L"P00(,_
M:*PZ(N5%R`2<BFHC<&L[2@4&J+17^IDZX(,KFY/_,Y"S4RJG?FB"WJDC$O`"
MBZDE%Y"P&\6('.WJHZB`/6`"/8C.D"AK7\J!/JXC*$`!"N`#$*F.(K"J.X("
M1`"B';;K'*!"ZV""+B,.%8B!!J@"2^.C'*`RQ+;CC*B!'+!NZ*:Q\[RK?G"`
MM)82\JB#/F`M6IH`GDHE&""!$NC;IIF".A"`4E#PHU@#%^2C1Y@!)_"A<*JC
M!OT9"*!M4!+N_^:CYAYPKL8($LB!-1"!'A"`134*-%@!"Y*2,2B!,`"A-0@$
M9OHOHW`!*2+K_/VH%.^C]$[R.ZJ\H&1RZQ!P*/\9;IKR.8DM]!2)(Y"".^""
M-G`"H^J'&*`#_^XC(R``_]_-@B4P`3&X@5>);3K6"!2W<BE9\>=.`D^``B+H
MAQR(@C_"!-H4[Q78<Q8(!1&PA;!Q`1RP@:-(@"P8[7[`[DFF<RE9<DJW#B=?
MUDL/"2G?]*.H<D\W"BQ/VT/8`A*P`6'8@55(`P5W`O9\)!P0!)XRC$T8@R)`
M@+=(8XR0@6.5\U<+=>*P\Q;W"2\H@EEP!DN``QQPA3Y0`A+X@R$`@0GP!2[(
MD`K``B\P`S!8!$A8T(SH`VHH(A>``T3P!4GX`RB@`@29!0G`/11H@T)X#!++
M"$D']N*P='L/B4RO)GOO]'S'"%#_=Z0`<=E*:2)@8E2O`!CXA@I@`#"H`C)H
M!?\X@`0;:`,5,``,0`4.^((9H``;P(`BR(4I@(4K^($MR/%^B/59[X=R,(8,
M.*$BR(1KB";"\'6#$7B-$':#4@(F1@-3R`8$D`)LR`%]V`AK^(("R`1'U)Y!
M^`%=$(-;<`1/S8@JF(Z,.(19@'H8T()(^-)K((%!.`!CF(`,T,;K/G)?PGG'
MT=2?FG>UWW>!]_=_#_A_'_64?H<;2WA".`<L0`4$4`*VR(,HT`)?.`%2"(!@
M<`4&.((T('P2,``W6(-0L(%(D(3>5GDZF@!<$`1)$8,@$(3AP020FW.<UWF-
MD`(`2/!Y0@)FR(&A1]`A6-4^,`!'_``:D`0QT`1'B'K_3_V<?E@"5P"P<<^#
MK+^%K>]Z90S30/B#3Y"R,#U[J=+?25=[?,=YN/]WN<]WNL]WNP^):6@25(<"
M+P@&!2"%,'&"5B@`3@@#7Z@!C&,"<G@"%<@%]B<!7-"93("$)(EMS`<(`?W"
M].NBB(2/)SQ^D>B'Z4:_B/T`]!,H\2+&C!HW<NSH\6(!`QL=A,`(0<V-)KNL
M8$`B@MN4<);F_4&P(!F%8G:D-/KR(@BR*)D@0;O2C\2'6GP$E*EB38LP+U%Z
M(?D6I)N)6J84"2A!).,``A$N5J!PX2/:M&K38MAP44*'M7+GRF6`(('$"1P6
MT.WK-Z*&!A$]'/AKN.\#`@/Z_X&P</BQV@P*(%PT4`"CJ0%C1O'"<TG'%7.3
MJDB0YG1$NR/]W-:J$:<9`6=+EMWI9T<9E3J"<$C,Q($)FGX\F"`H$:E*/R""
M>DS$2-$BY.AH0XXLB3&)'\@YC)SX&X=-";!BR9J5;MYCV[=QS[//:!=O1+U\
MVYL//+@P??:)%S?.?UXR91)9AA$97]1`GP]&R65"`,Y5Y!]]U&E$4D9C)#'!
M8SNL\1<)">B@45AC253661"REYY$<)G(WGMY[;7B8?;U0QB,D.W'F&,U&@9@
M99=A1(B"["TV%W02/:=C=!)F1"&2CX5(7HE-&H9B1"I*:5B+\;UXY5HRTLCE
M7#?V!__F6CP*Z".9<QV9YEQ*8L0DFVL].6)Y<:Y%93]6VIE6EOW(MR='7N('
M*$=BYDBH1F9&-""B'JW9*$=N7@0GI"".1V>4E6:$IYZ:8M3GGYX*ZNE%AI(:
MD:+],'JJD0^JY8(--PQ1T0P]#%&!#(\UD=$.`D`AT1(E22H1I1\UD<80>""R
MT0F.L+*1"T4T885:(E`2`(87S1D1B6N5<HD1<SS0UQ%IS(%6#2L0L!&GZZ5U
MA1QN1`2#(45N],`66R"'40UPR`7#%E1(<@%\?FZ9UA0<Q!&1'&<TU%$1`M#R
M0T90O*'6J',=,,(2#'<18$<'D-+`@62-H9:I*(,R!09P*''_B%QK!*-:7ZFN
MBI80#4RAAPL2=6!%SQQAH8$>#V/TPPA!J_6H1%/XL%$5H@P4$0DHS'K8&W3P
MYM$5(@T;4;$NP)!&D!?5@`0"4CC#T0N*:)0#&V6L!04D75@J(K=U$GN&'1OE
MT<(1=@C3UPQ@:)%6`QJPZU:*[DID21<=:W1'"$:=\<K"'MV1AD8PA&&"7!P@
MT`^H!T>TQAT0:=2'$D#T\X@B%'R$`1:98Y2%ZFAEG-$-"`R9T1&9,"=%,11[
M=$@++&CD1WAII2Q1$X/@H#1&GXA`2QF*Y#&7*\'5/%F/&)6RA0,;95*!%#=T
MQS`#U&-DR0@[</0!`>Y_Q'0_!`@R_TXA&IU@3"B@,(9+/($)`6A`_\#@A2$0
MPE9ET(`-4$&&?M0@%5O8Q!`"0(,9-`(42U@%%2I@A0WLX1=N0,$&9("`-G@"
M#EX3R82L(Y%'"$(0:\M(#1I``P'@P@NQ:,$#C``($YP$`2'00A;T\(DB!`(+
M1AA%)<B0BWZP80YGP,$LC*"+B,S`"SV(0AS\T(%?861;_>A67E0AB'0@02-Y
M2$,,L@"(?EAB!6Z(PR7.4`4GK"`02T"%&IP`"CFP@0E@^`,>B#`(2$2D#Y?H
M`A@:H0`_.``-"&#$'Q:GGD]A0Q`A,(-&EL`)*DS@#X&8``Y@<8$S,"(*'.`#
M`9A``R^T0/\#`@"#)#"0ART800VGF((:[+`%#H#A%UY8`Q=6L*L(,(`+;1B#
M!Q2W@+NX:#X1:<(K!`$-YF1$"G_H0A$LH`0Q9"`,0UA``$8@"B]X`@E^``(0
M2%$&)"2B!T=XP@@PL`HWH,(*87##"B:1A@7@8!%;`XQ@9C2HBS"`&H*811(T
MH@-(`$($`O!%&:P`"3^4`10K8,4'6%$%$)1B`:NP`QB`P80DW*`#,;A%#_Q0
M"2300!2>B((E9'")94GD>1$!0`V?L!%5),$`+%#%$2C@A46T(16`H`0:5`$$
M53B`$('HPAA\8(1?@.Y[(%,5FOI!B'`(0AJ[R@@7C!$$$M1@$)K_2$(A]C"`
M&(RB?/UPQ!,N808L[&)[_9##")C0@+SF(`@$:$(A8`$#3&R!"8YRE424L+]@
M;(0$;%`&(0)0P``(8`AHF)4(:M&/%-Q"#D%``>?>,((@\"$*.^`!'(10"P&T
M0`!9D($8A#"+?D!!`98HP0%ZL8,75N<B+CA`#;N1@HR\H0VA>(0+T#:#5/2C
M#\1H0PF.@(L;="$%O^B!8_(@EB0H@@5G,(,?&+"*%%"V'RQPRS\=83?QX.V,
M>NM'!,PAB'E$02.(H(0&8E'=/PBA#A:P!1DL8(@Z2``";EB$(P9Q!"?,Z@A3
MZ,$'2!&1'$A`#I[`@A,@,80V),`*BM-(_[LPHH4:(B,#&C$#`:*@`T!T`0TI
M4(,:AI"%"'2!`EC(@!N>8`0:]$/!NW#$ANJP@@Q@`0=@8(,1NG`(,/!!#(OQ
M`21$L(5#8&%TI;.F6(51PQ5HA`464(,"<J``(Z@`!JQ@@"0B+(1!S%D,?+B#
M`TS@!SH8@@\1600*"F$%(<P!"W1P01B>W(>+[.XB9X"&(*CAA$3U`Q9&,,$F
M/B`"&"@A`AYX@"Y`'0%0D,$$0^C#"T[1@U,\0GZ[>(`/VJ`'!#1"`OW@`@;.
M0+.(^'0&O*BA#^S7CUFP003]V$02T%`&6=CJ!)O(@2IR``(47&`/<_B"$/I!
M#._1Q69A!0(]:O\8UHMDH!@K,`,96+&`%MR@!4R8`B(:PHH3",$&`HA?1#(1
MPDBXP!$($``!S!"$2`B@%<)VD+TL<`UJ/"(C)+@!Z'I@@R%LMK-)4$4_2L&*
M!.Q`$VDX;6I7V]H=M.(#7RA$NP6P!4;*H"10&`$**!F"X?;C:_THU@Q,D0U)
M:.1L'*"@=',!A10DX@(?F,!VN]L*([C.:A$@;Q\8`04U6$(3[(W((TS1CP-0
MX`#S+>.E\I:I$TSA'+>8@1O3X`0P<(`0L#@!#*Y`KPUH8`REJ'<7&C"(](5"
MK%U`0H8C<H,`.*(#(,:#(2[P`@:<>%.,JY+C_$0+=ZAA(U*P!",H`0/_&Y2B
M#FH``@%VW.,?!]D("(A!&XRPBPO$(*L_;O*3H\P".3P@!ZK9P@J@X(,!=,'+
MU-02F/L1"'%\XG>EJH`-5E&!*&"@`3((0!WB3.?IVYD.9$`@$@AP@1.H@.""
M)K2A^]&(.1RA;(V62!&`08XLK`\C&8!##SYQA%,X(1`ZR,4C/AUJ78RZU#1H
M`!($``-T@@20@!DH@@[$VJS56J7)0!X40:DH!HY@!!6X0PA(P49\@HAL0@(,
M@0.8`@8,@;-!F[0)`!&DP`!@@>MLFU]XVT600##PPQ9<3$9HP0Z<@"G8@1$0
M0,JQ`AG,P``T!`^\@26$@0S@FPD401J<@2^,_T$0&&$`W(`6$(`,&-S]0!9:
M5,&_9<$,C(`8>,$!]0\;3((47,$6_$`.C,`!](`<],,;*,`:IL$+C,(!<$$`
MK$`#S,$5+`(I)$$D9,`;]@`C[($I5$$NY$`.P-"2R!!:-,$0;$$_P`$=*``)
M#(`D+,`;H$$6',`E/``J2$`A2`$GS($9S($$H%`%X,$!.`$.=`(,>``$UH`,
M?$$,0(`GS!%]0<E:6,`D"$$.M``D>,$JX(``J`$?P($/P,(3_(`<I`$'*`"U
M:,$DD`$5^(`=-(@+\$$AK``G1,$>N$$E',(7L$$`R(_C;5*UT($`3$`5+``C
M6$$#I$$+<`(=W``@//_`'(@"&[`A`OS`"@S"&5A!*EA"$H`'!B@``AC!%O07
M#@##X?3#%1S`%Z`!!$S"S_'![QE,\'G$'#1`"23!&OA!#VB!#WC"&:1!`V1!
M&W@!`AA"`[!!(_P`)+3`""""&TR"&1B!$9`!`BP"$K"!)[Q`#6P`)1B;1)Q?
M6O3`'(A`%4S`)?2`&C0`*!@!(UA"O8#!!6P`&2"!!O@`';1``#C`$!!`#8!!
M):2`)W#`!610'.0`*G#`6?&:!(Z)\X2"4/7#*<```>S!**0!)2#"*5@"*3R`
M!Y1!$*B"%<`!&PA`*)"!T<B%"ZH%(/3`%%3!!W1!`"```4A`$7""']!@'VC_
M`0;T`Q9XP,+TP1G0@1D0@@\PQP]$X1D$0`N,PD9F!/Z<BLT5RZF8$1JQ2D2D
MF&]&Q)>1"E)6BD]I2F0&YVW^A0N(P8KD)B-&1P4801MEA`M\0(.,A.]\!&_>
M%UJX@!7P7$>P0!=@X'DD@`W@@18X3J?0Q0[@`3?-11-0@?%$A!'@`5H,9U_H
M`$JVWT5HU%=YA",<0!F$@?)D1''*114$`!.<3$9`P@^H0'0<9WY80L%\1!X(
M@21\57(^1AU\0?M)`0&8HWDL)UU<P=/`"'32Q1N0P01M!/R-CD9$P"=PQ!&,
M0,-Y1'=F2EK(0"1XQ`,,P8'V117T#484024\C32B_^-?T,$(^$47$)E$G$'E
M?81^SL45K(`=U`")7H07!(+M?`0>3($3J(&+(6A"?8E?.,`@Z($`:<07:$&`
M_@6%LDDBQ,$1."BJ@,^92$<,C``-1@0F^,MYF.A&F`$=N(5@'<`2G((H$$`H
M#,`&S,`E,`$J]$,5],`*F&>2*.*;1*='0`$>(,$9;`(DC`$"($`!#,P(F$$*
M3$$JK,`:^("N@<(7Y-06>$-$F,$9L($.E($84,`,$$`9(`(=W,$`V&J.2L2.
MKH49\($A;$(_",$4W$"]Z``>(%H8\&<>'`$5]$`3A`$I(``3Q)0<K$`AV-H!
M3$$$5((AL(Q%1D0<.`(>]/_!$>@"D2'!X^5)Y'F$&3S!%EC!%=`!$NR`%L@!
M$WD!'PP"(`A5!F0!`7P3!PS`!-"!&%3``.`!)YR"%^``$/#!%'!!/^``&^R+
M1EPI6B3!`9RE$\""%O2,'@Q"'51!'>CA#UQ`$CA!%#P!$,0""LP+&]C!%;P`
M(!S"NCJ!)#B!'IS"BR+4?=#%`)!!%C@`"L3"#_0,$PP""CR`'F1!`?@`!:`!
M_2Q!%QB"%\2E7-0I1[R!!11"!FA"!JA!`L3+*2Q!%3C"%PS`"$""`A2!(R1M
M(#Q!!2R`),0!&(3!*91!0]0`'TB"%%3`,$!"E_9#AWJ$""S"%(A"&*R""JB`
M$'#_01P4@15,`@$80A4<`!TXQ!L\``)400DXP@CX9U\8:J)$0A"800N00"0L
M`0_T@S:Z``^00.^.P`*\0C^,0`R8QXJJA0/\X0<,@1,,``:`P@*D`0X(@1_D
M7@/(00:(@2Q<@;3J0!8<08WVPR',@A2002&<P!U<@!K$`!G@P2<D@-;E(J:L
MA1Z$00EH0AZX`1YP@0SXP17<P!SL`1BL0!=`0B#T0P-,`A+T0!#T0AU@&"-4
M02CTP1?,012T00-\@";DH>!A@!,0@`/0`2,!9UJ4``'T`!EX00',P1:(`1BY
MP1DTPAUL2#^H4`8871O09A/X@"XP@13X0"<``1G$7B!4_\$7T(#L;`3*?@00
ME`$0@`$:<$`01$0+I,$$=,$#@`$>M`$8!`$BK,(/1,&Y8"H2K($#^$`#K(`0
MT($6.($-[$$:;`':'66:+I1:<$`$?,`=+,`]1@0HL,$,M``B/,$4#$$/R$!1
M/0`G7+%?J.U&A,$>R,$''(`BP,"Q'4&]W8$4]((91-LFY-P/B(#6=D(!5,`E
MO",.C$`.B-\5-`$J[(`K7.B>?M7-?$0FC$$FO$$4W(`&U(`($,$?7$$,%(("
M+$`0/*DMO,`9R,`&V,`69,!CSBX6?L0,H```B,$DY$\9].[O!N_P/@%+UL%Y
M+&]:B$T'=(*9ZH`<&*/U"J0F]/\#$@S!'E0"+11`C;9!()#O4<R````#&*P"
M`[M2$`B!#[#"!-0OV-57;WX$!&@!!1#")O#!:%[!`W0B&E14/Z#`%M`!(_3#
M!Z""&+2!!82"&%!P&0"#%11&!$Q!!W_PN:A`&/C`"R"`#DS!">]K>W[$`Y""
M*83!&C3`!>C=(7!`&"S"#4>$#AN=%RA!&#B`&"@!':C`%!3Q$4,9%;3!693-
MIV1DJ*"%&="`)?"!$?0!%USQ&ZA`%-2"!\"`%7A!3>]!#$3"`LC!&3/`"N!%
M`'@!!;&!#R`M&3A`+%`!H^4Q71"!#*P!%@@!#8P+'$#!);B!$NC!`'P!)2"!
M$)2"$B#_PB/3Z5P>"EIT@F,D0`[L@G,67Q\$P@5$P"=%FRH00A'L@A:@W"N,
M2RZ(`@.T\BO'PH<D`AS4<D94KD?L<B]'@0PH`0:N@C74``X@LS(_:29X]!B8
M0`7,@2\$JE_0+D:XP!8D<A-XH1:\@#(D@!.(%#)8`#B8`"R$P24$0!00:J<6
MEUI(@1((P1?8``)LP1^@@@)P0B5T`2@<P!;0``C40ACX@A880Q(D0"Y(P"_$
MP0GT`"54)AN`P0_D023<@0:X`0^`02M$5$/KHEI80">PP2>0`3"0@@FH0!OT
MS0T8@PV,]![0L0#T`14L@@"$01HX4R0TP"K`@"HP0@P0``+@_\$K5$(Y%ED:
MX$$IH`$(M&$/\'2_=L0-$`!]"D`4,$$);`$J:$$G_`$N:,)\'(`'8,`[<8$?
M:"@*6(`$7$`'4$(6;,`BG($D>`(+U,(NP(P3@[7I?(0CG($/F$`$G\L:=($"
M2.$%1+46!,`BN`$L-((!X&(_>,(JE$(!B$(F+,$4*$`;;(`?^$`+?,!A/^U<
M+``;W,$$M$$(_"P+;$$+!($8@,$=B$`:V(`'4(`L8,$L<(&$(D9HK\4'Q@(.
M`,(28$(&F$(;G,$,O((0'$,#>`,,X,)"`L(K%L<@4$`$I$(@5((F&%L2F+$3
MF$$[S('L$C='Y``WO$`QL``1N$$)%/]"&\!`H)_!*#2`*FS!*:P!,EQ!(Q`#
M$X@"$L3N87"W8;R!U(R!<TH'.OMFLT)(X:0H9*"P;SYQHR1HHTBR6FS"D/H'
MNGN*P?_%":C!!E"+\GKJI(#J7^P`"HAL1+B`'KB\>3R\7[Q`>5IN%K@.1C@!
MGO54S\\.E9O'#8#!N,V%P9HS1U@\HF#\7Y`!%NQ:$4@"GQN&QJ<%+,A`-0L!
MVD+&QVM*R!-*PS]&VUP$"RB!D(2=??'H7"!/QZ\%(13""TB$!:2!B*-'T$O'
M$Z@!#F-$$)@\6B#`SR6]G]<FH3"]7_S-U/=#).3*853]7.0!"I#1?_#IHA0]
MJ7P]H(2]1[S_P"4D$AYXP`RD`!!\`0G0#0?T@A#,NP=**Q-$3@)(0G\9!LVC
M10)L@0\\PAY(0!680"$\PB%<P!>4PBY@03]```7XP;FF@02<P`](0`;L0!5L
M@29<0!>80!;8@1H@@@C0P1EK4N.L10D\%17<P"!(0@_T@0_<0`TH&`&&@1-,
M`1F0[1.TP"Y,@"5(0K9)A!Y$@1,`A)0O8DATP8(H@!`A-&P0ZO>0`8($#_M-
MX+"`8D:-&SEV]/CQHX8&#ST<`-D1`9A)=#3\V(%#$B$7>A3X\;.`R84=H7!<
MN6!%Q4F/#P@,Z`?"@E"*;RP4RJ`I`PT(/I[TV</ADX(D@_*,@*3`_TP2*UQ*
MN%#*,8,""!D-%#C[%F[<AP#Z"9![%V_'`@8Z.@CQU@0Q%R-P6.D@IQ^.4)8$
M3,!U8T6"8#E<#5CQPU"07`_R/AQ`($+&"A0NO/T0;,(/("P:P:`1HXJ;4(]"
M/9P!1@*93F5(Y:'PB(`,*FNV9/F30%*/,S^F2#@CPB.&#1DE='@;0\T`()O8
MY%@P1PH5`C]*=*&`)0,%(C]4B%AA8PD!"5<H%N&P10\2"!?H4""PI@$N&J%"
MBHPBFN@ABS#JC$&E1"+)I+B((`./.?0(I)9#^@D@E`A80&`1+_1(PPQ2?JB$
M`3\XNXLHHY!Z*XP]Y/C@`$5@Z"<+*Z@8I/^*0;SH1XD<-IEADQQ&R0$!)&K`
M*ZVU*&JKP2CAHLLN*:T\::^^_CHKL,$*ZZ2V"0S@HH\C'HML,EQD"*,?$ZZ8
M8A,X.OLL-(I&*TTI%R#X01%/Z'"`BQLD><*.%28IH;9^;LNM$PM@L6.X+J98
MQ('BCDLN$#JBZ`<*!Z*;CJ+JKJ-A!@:(8:,)(PIQH8U$L(C`//0J`6:%A]*@
MH1]"-+&!(A>.^`,7#J[0HI(P[B@#@2\Z(-!`B2A2\,IH*7JPGY+DFK!"/=R0
M!:,HMJEB#1M"'-$,#]S`XH@X@F*QJ*.2.JO1?A+(81<Q^CG#"P@8D$4#>X,<
M<A,I@D#`""CR:I+_+;>D73@C*AE^N)\L.?+KK1*&>0&62KKPH(H`[#BDC$4P
M`,"2$(Q0A0E<KM"DEB=L<",+!ND4C;2S(*C$DTINB`(#&?((!8%&MI#%D%X>
M2H`2-;Q8Y8!8")&C#4N2B.("4!`(H!-#W-!%`!^L@>0CZ:BS[JQ2_`CD!B`2
M$>`(+*AP8N`M2'&$BU`",`(!$%Z@P),PU'!#`BS8)(0*&NK`@`L4(FCA$BH6
M(24343)H%L&*+H)82FJMC0N8'@:)0@).?KB`BBINN*"+7+0`18%+'OE$!C!"
MH*((O%IT]RT'3(D%!T"6P*24#NY@!!(:.%"C#U]D,*:$5IPHQ)!%ECA8_ZV$
M,5_8X>NCE7@CBK6_<F8[:_[>2K%#)5NI&&@P(<I'RL#KP&<O)Q\OS2.D/Z_;
M7[S^#T_KJ(!)U7N2PO#'H.P5L#/<TXCW$)B7\#WD3E9Z@QZ><#WS/4149WD"
M$2K(H!H$Y0$HJ!U'^K``@VTD?@F:7P//8C]ID:`-1HF6_MZ%ES@TH`DG,<(I
MIG#"AZ0`"3[<@18`V!&$#9"%>3E@$N.BP(PPD(EP>6`_(F@E)!"A+U60T@7[
MD<&SO&%='AE#$M:@E!]L80(=X<,6"H1"9ZEP05$$B0NEM8HJ;40/!(P+#1FT
M"1;@919'R(@LTFA$`3X$2G*<4ET4"1<G4@2*C?\\R12K*)0=P(`"<["`#NB`
MAR((@`G]4`$.AL`)%@@A`GCHAQ.88(%.2*((/6B`D_#"12\*)0=!@$T/>F"&
M.(BA`6LH``:2$`,B9,`!/GC$0Q[!!CU480%6P,@:#,$(Z!2``4&`P"D+(`,$
ML,`)E<B`!;(0@WZDT')QE.1&Z`B7']1!"VC8`Q`LL88]9,`%3="#+Y@`B00P
M@`Q0*`,*DC`+#`Q`"#^8`5SX>)8=+.`"1;"`!'*XB268(`P.0`$2/.D"2%2A
M"XB(P@OZP0(O%(@%"\A$#VY@`A_THQ=2.$$=R'`"C1P1D7I<YT>6N%.///(A
MD?0I1R@Y/J4L``158(7_%930A"?@0`8>R(,=]M")$FB@!*=(P!12<`<)M*$*
MJ4C!]/)B2_0))0Y4^,(*IG``2@@!"WO8`@KB,`5&?,$)<V`#^P[!!#R$00&`
M<(0;\"`#&0QA(I5`P!6^\%0W^&`*;WOL'28!D3>F<Z@::>=;2($$+7R!&*I<
M00K\8`DV7"$6%DB%!2B`!$!(H1(00,4#"L'*%#"T7?M3"@)DP`<.'*$$(]A!
M,!+0!09PP!-&B,`8@-2Q0(C!!J5H`!0T408*%$$)!P@`"6Y1`5?D@`X?`$<;
M*8+3?B0RLQWI:7HS`M1^")6]G@$-S?"D%!D0P0Q_TT`.6G`$)PSC#D<(`E8U
M_]`'$/S@I4>8PAQ.8(A(++2LH,+@64^25C=H@0F><\(H4#`(Q,S!%G3(00DV
M$;-^6&`2"%#`'4KP!4^X`08<2",4HC`)4%#A#6Q@!!A*4(58T&$*"+!LY:`5
MW\V>A0@RF,`=O%&*";1`"ACPQ`::P(D'Z(*U5OC$!QY"BU(4@0B4B`-N751#
MI?Q!`\D@Z28*\(HC".$,0_!$`^34CUN(X`R.P,$@_F`O$&C`$?WXA!BVVUU7
M-.$/5Z@`"6YZR//J-+YS862D->)>^,:WJ/45"@IHD8(LZ,$4_1!#"TQPAQX`
MP0Z)6,`JJ,#A3<C`$A(8`AX.T`8]=,:L;[$PAAN@`?\!L$$');A`&S+0A16$
MP0YUF$(_JD`%271@%%\H`1O2\(4;;,`A#*C#`C1A!!1\0`P^"``8HC`"3TAB
MR/)39V:/K!1.[*$'#V"%O39@B2\@0A0OJ(5_5*+B%K`I%W8`Q"$`T0<RX^XL
M7$C`(L*0!1R,!`0H(,`74D&$*8SPSGG&00M>``H3?&$!`6@")AR1"#XLXPBR
M@$`'2)&&(I;7T>BEM*3O./.(\65B6[)Y/S)M&E>PCQ`?R$$_CO#'&APB`P,8
MXQ+&_(+WI2"/>D`#@W)]EES&@`QE>(`>)'`'/"R`!"Q8Z!+0@`@<.&D`>DC"
M!V#P"`'D8`(W0(--X\"$)/3_0PI_',`-)G"$*I0@"!$P"SJ+S-YV"R456#!#
M#:H0!``Z`3HG<,('H'""".A@21F8.@M$\`(4F&&/N37S240@@`(EX`4N*'T<
M'K"$!SQA#T&IP0?67@5"+*`&<(#!&^1%B`R0H`]7,$$%/I"'?CQB!QLQK\QG
MOMY(6UKG-N_Y68#P"3E6_2X3*&4/9I"#0]CT>H1?87H/?Q)@?`&!#7T8Y=\"
M`4:C)>:0CK3SXPO]G<NW3A`TJLVQWQD94*`.?B3\+JOPR&\DJN5^(DW]%F8$
M@L`'("PCU@#\-"((ZDSYXN_^^H'^V,O^[F_Z=J[_3N(*G``&JF``CF`)$*$L
MHB`2_W;`#&"@`N"`$$1@`LK`+*Y$_-9MJ,IOJ!;P)(H`"H*@!G3@MAR@#$[@
M"(#/!7"`]2YJ&$8B!B9"!6YD$EH@!M!@#<I@#!)`"]>`!(Y@!@;`!>!`!C(/
M`^]O`].K`W?N`_E/PKJ(PD#"PH```YJ``+#`"ZB@`=)@#*(,$`+`%*8`"1@`
M!Z(E!R.-!WW*!T'B#](`$&`!#T(!!K"`%`3`%Y"`%BR`"_2,`,9`":Z@$Z0`
M%JK@ZR!A!(0`!T:`!!0A`C!!#73```[!%ZR`!XJ`%$[`&UY@^>0OOM(PL]90
M^N9+?#1MYD+P))#@$EH@%^+`!4H@\<2``ZH@#3Y@`K``5_]:`!:F#@<)</S8
M[0`WA](6\2.R0`S(@`"&:P"<`!7VP``<H`OL(`I^``<Z40D&(`=D0!9&H`Z6
MA`/J(!6YJP*(09!D`0I<005ZH0)T(06(H`G*X`QWSA>'"AAGK@V+\0UO22C(
MH`4TQ0GX``B0(`HJ@2Q.@0XB@`O4``(2``S2P!"Y40=]*A%W2AP]@AS-<0=6
M`1""@`;$@`=2H`NL``O:8`[^P`4^40.@P!2`(!(*H`2&0`C(8`.2(`2*0"#[
M@2`-LA?,X`M<HA]V,0,CTJ<FDM(JDM*,$20@X`B*P`&*X!#PP`>T``GN0`4.
M00OR``F\``TJ@0^@8QN)K!MW\!O_$S"^9K(C!O$#P@`1J``')&`*M$`2#D$"
MZL`^@J`.@F`(4DD``F`"F$`-B@`1>H`$G`D(8*`0""$%`B$#5N`%NL`$8,$/
M_N`02N$A;0XL=THL(XTL(\TLX^L0C2PP;8XPHP0";O`NFD`6D(`)S,`)9K/Y
M)FWG;A/3A%'_B+$L+S(.(ZTW#>\W9RXX&^0#:N`()C`NR-`,:>G1OM(Y;0XZ
MV2LWXVLWV2L[#1!"@%/TX`+UQN`-GJ!VC'!)^!/O7H`$T@@`'*&$QB`&/$4N
MO!(-TW/FUC.]VI.]WC.]XM,;YY,[Z_,L4``&HB`/-D`+L,`(3`$2#,`)L``4
M@H`\H@`&_ZPA!SYA#8Y`%(I`#7CQ)!04(AF4TAPTLR`TO20TLR@4,"TT'#%4
M*4;AC_H!!MR`$O:@!4Y`%4Q`#VK!#EY!AFZ!2.Z.$DK@`$8H+FR4-G'T^7"N
M>Z*/(J63BO;/(L<F`X$4)K=S2,OL+0+!!E(@"%I@#VA``A2@!OQ@"YX`$-H@
M"L[``1RC"50A*28@$V0H09F3TFISG71TJ'@TLWQTJ-ATIV)RG;IS([3`!W+`
M"[P@"P2`%/"@`.*@#>A@#DC@+6?`#2)`"&(@^>Z`/N["2YNSYAI43!>(3,?2
M3"O)#=7T_BQUG3!5DC05)(+KMDX"!D3!"8BS2QEU_L"T_G+UB?]V%3=[%4VK
M$UAW3E@EB5@;R5@_@@50P(<^0@J20#R?U3R9KU&EE0.I%9*L-3KS[TRI4S>M
M<TU=$A'=5`&)-+YJM5UO-4?A-:CDE3VQU5[=$U^#55]]4TC[%4XI#6"C56##
M5$LR4%*'BE)]JEL;Z5L5*5SE:&)[T5W5D&#?RV`?%&$S<&-WJF,5Z6/E*&2C
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MD^A^R2=_"VA_"ZA_\>=_M2>`KV>`KZ>`6>B`OR>!\6>!\:>!Z>>!KR>",6>"
M,:>"&^B"M<>]_Q(`&9Q``%K8A5\8AF-8AF>8AFO8AH.@$GJ#OEBV<VWN@S$G
MA"%FA"&FA!&(+B(A`))8B9>8B9O8B9\8BJ-8B@.@!?Q`$3H"`A9ABK>8B[N8
MBQ4@$,S35]/T?/+5+U_R4OE5=",VTHJX@*C$AN-8CN>8CEU8!N@U`X4"#K)`
M&VP!`/X8D`-9D`>9D`O9D`\9D0&`&S:%(JS@&1(9DB-9DB'9%M1!%R`P!U`!
M'OQXDCO9DPWY&5#@(79!&3CYDT\9E0&`!YXA$@I$M_X56DDVCV>9EFO9EF_Y
M+E8!##Z@CGO9EVWX`^[`#UZN'YY0!GX9F9,YAF4@&G#9F9\9FJ/9AQK3@`"\
8V)JO>8HI@2LI@@.J&9N_&9R?N!\"`@`[
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
