Document:

exv4w5

EXHIBIT 4.5

CANADIAN SOLAR INC.

AMENDED AND RESTATED SHARE INCENTIVE PLAN

ARTICLE 1.

PURPOSE

     The purpose of the Plan is to permit the Company to attract, motivate and retain the services
of Directors, Employees and Consultants upon whose judgment, interest and special effort the
successful conduct of the Company’s operations is largely dependent and to promote the success and
enhance the value of the Company by linking the personal interests of Holders with those of
Shareholders by providing Holders with an incentive for outstanding performance to generate
superior returns to Shareholders.

     This Amended and Restated Plan is effective on the Restatement Effective Date.

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION

     The following terms used in the Plan shall have the meanings specified below, unless the
context clearly indicates otherwise. The singular pronoun includes the plural and vice versa.

     2.1 “Applicable Accounting Standards” means the generally accepted accounting
principles or reporting standards applicable to the Company’s consolidated financial statements.

     2.2 “Applicable Laws” means the laws of any jurisdiction as they relate to the Plan
and Awards and the rules of any securities exchange, national market system or automated quotation
system on which the Shares are listed, quoted or traded.

     2.3 “Award” means an Option or Restricted Share granted under the Plan.

     2.4 “Award Agreement” means any written instrument or document evidencing and setting
out the terms and conditions of an Award, including through electronic medium.

     2.5 “Board” means the board of directors of the Company.

     2.6 “Code” means the United States Internal Revenue Code of 1986, as amended from time
to time.

     2.7 “Committee” has the meaning set forth in Section 8.1.

     2.8 “Company” means Canadian Solar Inc.

     2.9 “Consultant” means any consultant or adviser:

 

 

          (a) who is a natural person and renders bona fide services to a Service Recipient;

          (b) who has contracted directly with the Service Recipient to render such services; and

          (c) whose services are not in connection with the offer or sale of securities of the Company
in a capital-raising transaction and do not directly or indirectly promote or maintain a market for
the Company’s securities.

     2.10 “Corporate Transaction” means any of the following transactions; provided
that the Committee shall determine under (f) and (g) whether multiple transactions are related,
and its determination shall be final, binding and conclusive:

          (a) an amalgamation, arrangement, consolidation or scheme of arrangement in which the Company
is not the surviving entity, except for a transaction the principal purpose of which is to change
the jurisdiction in which the Company is incorporated or a transaction where, following the
transaction, the holders of the Company’s voting securities immediately prior to the transaction
own fifty percent (50%) or more of the surviving entity;

          (b) the direct or indirect acquisition by any person or related group of persons (other than
an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a
person that directly or indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
securities possessing more than fifty percent (50%) of the total combined voting power of the
Company’s outstanding securities pursuant to a tender or exchange offer made directly to
Shareholders which a majority of the Incumbent Board (as defined in (c) below) who are not
affiliates or associates of the offeror (within the meaning of Rule 12b-2 under the Exchange Act)
do not recommend that Shareholders accept;

          (c) the individuals who, as of the Effective Date, are members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least fifty percent (50%) of the Board; provided
that, if the election or nomination for election by Shareholders of any new member of the Board
is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new member of
the Board shall be considered as a member of the Incumbent Board;

          (d) the sale, transfer or other disposition of all or substantially all of the assets of the
Company (other than to a Parent, Subsidiary or Related Entity);

          (e) the completion of a voluntary or insolvent liquidation or dissolution of the Company;

          (f) any reverse takeover, scheme of arrangement, or series of related transactions culminating
in a reverse takeover or scheme of arrangement (including, but not limited to, a tender offer
followed by a reverse takeover) in which the Company survives but:

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               (i) the Shares of the Company outstanding immediately prior to such transaction are converted or
exchanged by virtue of the transaction into other property, whether in the form of securities, cash
or otherwise, or

               (ii) securities possessing more than fifty percent (50%) of the total combined voting power of
the Company’s outstanding securities are transferred to a person or related group of persons
different from those who held such securities immediately prior to such transaction culminating in
such takeover or scheme of arrangement,

but excluding any such transaction or series of related transactions that the Committee determines
shall not be a Corporate Transaction; or

          (g) the acquisition in a single or series of related transactions by any person or related
group of persons (other than the Company or by a Company-sponsored employee benefit plan) of
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities
possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities but excluding any such transaction or series of related transactions that
the Committee determines shall not be a Corporate Transaction.

     2.11 “Director” means a member of the Board, as constituted from time to time.

     2.12 “Disability” of a Holder means:

          (a) in the case where the Service Recipient to which the Holder provides services has a
long-term disability plan in place and the Holder is a member of that plan, that the Holder
qualifies to receive long-term disability payments under the plan; and

          (b) in the case where the Service Recipient to which the Holder provides services does not
have a long-term disability plan in place or, if it does, the Holder is not a member of that plan,
that the Holder is unable to carry out the responsibilities and functions of the position held by
the Holder by reason of any medically determinable physical or mental impairment for a period of
not less than ninety (90) consecutive days.

     A Holder will not be considered to have a Disability unless he or she furnishes proof of such
impairment sufficient to satisfy the Committee in its discretion.

     2.13 “Effective Date” has the meaning set forth in Section 9.1.

     2.14 “Eligible Individual” means any person who is a Director, an Employee or a
Consultant, in each case as determined by the Committee; provided that Awards shall not be
granted to Directors or Consultants who are resident of any country the Applicable Laws of which do
not permit grants to non-employees.

     2.15 “Employee” means any person who is employed by a Service Recipient. The payment
of a director’s fee by a Service Recipient shall not constitute the recipient an employee of the
Service Recipient.

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     2.16 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended
from time to time.

     2.17 “Fair Market Value” of a Share means, as of any date:

          (a) if the Shares are listed on an established and regulated securities exchange, national
market system or automated quotation system, the closing sales price for Shares (or the closing bid
price, if no sales were reported) as quoted on the principal exchange or system on which the Shares
are listed (as determined by the Committee) on the date of determination (or, if no closing sales
price or closing bid price was reported on that date, on the last trading date such closing sales
price or closing bid was reported), as reported in The Wall Street Journal or such other source as
the Committee deems reliable;

          (b) if the Shares are not listed on an established and regulated securities exchange, national
market system or automated quotation system, but are regularly quoted by a recognized securities
dealer, the closing sales price for Shares as quoted by such securities dealer on the date of
determination; provided that, if the closing sales price is not reported, the Fair Market
Value shall be the mean between the high bid and low asked prices for Shares on the date of
determination (or, if no such prices were reported on that date, on the last date such prices were
reported), as reported in The Wall Street Journal or such other source as the Committee deems
reliable; or

          (c) in the absence of (a) and (b), the Fair Market Value shall be determined by the Committee
in good faith and in its sole and absolute discretion by reference to:

               (i) the placing price of the latest private placement of Shares and the development of the
Company’s business operations and the general economic and market conditions since such latest
private placement,

               (ii) other third party transactions involving the Shares and the development of the Company’s
business operations and the general economic and market conditions since such sale,

               (iii) an independent valuation of the Shares, or

               (iv) such other methodologies or information as the Committee determines to be indicative of
Fair Market Value.

     2.18 “Holder” means an Eligible Individual who has been granted an Award.

     2.19 “Incentive Option” means an Option that is intended to meet the applicable
provisions of Section 422 of the Code. Incentive Options may only be granted to Employees.

     2.20 “Non-Employee Director” means a Director who is not an Employee.

     2.21 “Non-Qualified Option” means an Option that is not an Incentive Option.

     2.22 “Option” means the right to purchase Shares at a specified exercise price.

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     2.23 “Plan” means this Canadian Solar Inc. Share Incentive Plan, as amended from time to
time.

     2.24 “Related Entity” means any entity in which the Company or a Subsidiary holds,
directly or indirectly, a substantial economic interest, whether through ownership or contractual
arrangements, but which is not a Subsidiary and which the Board designates as a Related Entity for
purposes of the Plan.

     2.25 “Restatement Effective Date” has the meaning set forth in Section 9.1.

     2.26 “Restricted Share” means a Share awarded under Article 6 that is subject to
certain restrictions and may be subject to risk of forfeiture or repurchase.

     2.27 “Securities Act” means the United States Securities Act of 1933, as amended from
time to time.

     2.28 “Service Recipient” means the Company, a Subsidiary or a Related Entity.

     2.29 “Share” means a common share in the capital of the Company.

     2.30 “Shareholder” means a holder of Shares.

     2.31 “Subsidiary” means any entity (other than the Company), whether domestic or
foreign, in an unbroken chain of entities beginning with the Company if each of the entities, other
than the last entity in the unbroken chain, beneficially owns, at the time of the determination,
securities or other interests representing more than fifty percent (50%) of the total combined
voting power of all classes of securities or interests in one of the other entities in such chain.

     2.32 “Termination of Service” of a Holder means”

          (a) in the case of a Holder who is a Consultant, the time when the engagement of the Holder as
a Consultant to a Service Recipient terminates for any reason; but excluding a case where the
Holder simultaneously commences employment with, enters into another engagement as a Consultant to,
or becomes a Director of, the same or another Service Recipient;

          (b) in the case of a Holder who is Non-Employee Director, the time when the Holder ceases to
be a Director of a Service Recipient for any reason, but excluding a case where the Holder
simultaneously commences employment with, or enters into an engagement as a Consultant to, or
becomes a Director of, the same or another Service Recipient; and

          (c) in the case of a holder who is an Employee, the time when the Holder ceases to be in the
employ of a Service Recipient for any reason, but excluding a case where the Holder simultaneously
commences employment with, enters into an engagement as a Consultant to, or becomes a Director of,
the same or another Service Recipient.

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     The Committee may, in its sole discretion, determine the effect of all matters and questions
relating to a Termination of Service, including, without limitation, whether a particular leave of
absence constitutes a Termination of Service; provided that, with respect to Incentive
Options, unless the Committee provides to the contrary in the Award Agreement or otherwise, a leave
of absence, change in status from an employee to an independent contractor or other change in the
employee-employer relationship shall constitute a Termination of Service only if, and to the extent
that, such leave of absence, change in status or other change interrupts employment for the
purposes of Section 422(a)(2) of the Code and the regulations and revenue rulings thereunder. For
purposes of the Plan, a Holder’s employee-employer or consultancy relationship shall be deemed to
have been terminated if the Service Recipient employing or contracting with the Holder ceases to be
a Subsidiary or Related Entity.

     2.33 “Trading Date” means the closing of the first sale of Shares to the general
public, pursuant to an effective registration statement under Applicable Laws, which results in the
Shares being publicly traded on an established securities exchange or national market system.

ARTICLE 3.

SHARES SUBJECT TO THE PLAN

     3.1 Number of Shares.

          (a) Subject to Article 8 and Section 3.1(b), the maximum number of Shares that may be issued
pursuant to all Awards (including Incentive Share Options) is 2,330,000 plus, for Awards other than
Incentive Option Shares, the sum of:

               (i) one percent (1%) of the number of Shares outstanding on the first day of each of 2007,
2008 and 2009, and

               (ii) two and one-half percent (2.5%) of the number of Shares outstanding on the first day of
each year after 2009.

           (b) If an Award terminates, expires or lapses for any reason, or is settled in cash and not
Shares, the Shares subject to the Award shall again be available for the grant of an Award pursuant
to the Plan.

     3.2 Shares Distributed. Any Shares distributed pursuant to an Award may consist, in
whole or in part, of treasury Shares or Shares purchased on the open market or, in the discretion
of the Committee, American Depository Shares in an amount equal to the number of Shares which
otherwise would be distributed. If the number of Shares represented by an American Depository
Share is other than on a one-to-one basis, the limitations of Section 3.1 shall be adjusted to
reflect the distribution of American Depository Shares in lieu of Shares.

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ARTICLE 4.

GRANTING OF AWARDS

     4.1 Participation. The Committee shall determine those Eligible Individuals to whom
Awards shall be granted and shall determine the nature and amount of each Award, which shall not be
inconsistent with the requirements of the Plan. No Eligible Individual shall have any right to be
granted an Award pursuant to the Plan.

     4.2 Award Agreement. Each Award shall be evidenced by an Award Agreement. Award
Agreements evidencing Incentive Options shall contain such terms and conditions as are necessary to
satisfy the applicable provisions of Section 422 of the Code.

     4.3 Jurisdictions. Notwithstanding any provision of the Plan to the contrary, in
order to comply with Applicable Laws, the Committee may:

          (a) determine which Subsidiaries and Related Entities shall be covered by the Plan;

          (b) determine which Eligible Individuals are eligible to participate in the Plan;

          (c) modify the terms and conditions of any Award granted to Eligible Individuals;

          (d) establish sub plans and modify exercise and other terms and procedures to the extent that
such actions may be necessary or advisable (any such sub plans and/or modifications shall be
attached to the Plan as appendices); provided that no such sub plans and/or modifications
shall increase the share limitations contained in Section 3.1; and

          (e) take any action, before or after an Award is made, that it deems necessary or advisable to
obtain any required approvals under or to comply with any Applicable Laws, including, without
limitation, necessary governmental regulatory exemptions or approvals or listing requirements of
any securities exchange.

ARTICLE 5.

OPTIONS

     5.1 General. The Committee may grant Options to Eligible Individuals on the following
terms and conditions:

          (a) Exercise Price. The exercise price per Share subject to an Option shall be a
fixed or variable price related to the Fair Market Value of the Shares; provided that no
Option may be granted to an individual subject to taxation in the United States at less than the
Fair Market Value on the date of grant without compliance with Section 409A of the Code, or the Holder’s consent.
The exercise price per Share subject to an Option
may be amended by the Committee at any time and from time to time without the consent of the
Shareholders.

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          (b) Vesting. The Committee shall specify the period before and during which an Option
vests in the Holder and may, at any time after the grant of an Option, accelerate the vesting
period on such terms and conditions as may determine. No portion of an Option which is
unexercisable on the Termination of Service of the Holder shall thereafter become exercisable,
except as may be otherwise provided by the Committee, either in the Award Agreement or otherwise.

          (c) Time and Conditions of Exercise. The Committee shall specify the time or times at
which an Option may be exercised in whole or in part. The Committee shall also specify any
conditions that must be satisfied before all or part of an Option may be exercised.

          (d) Partial Exercise. An exercisable Option may be exercised in whole or in part;
provided that an Option shall not be exercisable with respect to fractional shares and the
Committee may require that a partial exercise must be with respect to a minimum number of Shares.

          (e) Manner of Exercise. All or a portion of an exercisable Option shall be deemed
exercised upon delivery of all of the following to the Secretary of the Company, or such other
person or entity designated by the Committee, or his, her or its office, as applicable:

               (i) a written or electronic notice complying with the applicable rules established by the
Committee stating that the Option, or such portion thereof, is exercised. The notice shall be
signed by the Holder or other person then entitled to exercise the Option or such portion thereof;

               (ii) such representations and documents as the Committee deems necessary or advisable to
effect compliance with all Applicable Laws. The Committee may also take whatever additional action
it deems necessary or advisable to effect such compliance including, without limitation, placing
legends on Share certificates and issuing stop-transfer notices to agents and registrars;

               (iii) if the Option is exercised pursuant to Section 9.3 by any person or persons other than
the Holder, such proof of the right of such person or persons to exercise the Option as the
Committee may require; and

               (iv) full payment of the exercise price and any withholding taxes applicable to the exercise
of the Option, or such portion thereof, in a manner permitted by Section 7.1 and 7.2.

          (f) Term. The term of any Option granted under the Plan shall not exceed ten (10)
years. Except as limited by the requirements of Section 409A or Section 422 of the Code and the
regulations and rulings thereunder, the Committee may extend the term of outstanding Options and,
in connection with a Termination of Service of the Holder, may extend the time period during which
vested Options may be exercised and may amend any other term or condition of such Options.

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          (g) Evidence of Grant. All Options shall be evidenced by an Award Agreement between the
Company and the Holder. The Award Agreement shall include such additional provisions as may be
specified by the Committee.

     5.2 Incentive Options. Incentive Options may be granted to Employees of the Company
or any Subsidiary which qualifies as a subsidiary corporation under Section 424(e) and (f) of the
Code respectively. Incentive Options may not be granted to Employees of a Related Entity or to
Directors or Consultants. In addition to the requirements of Section 5.1, the terms of any
Incentive Options must comply with the following additional provisions of this Section 5.2:

          (a) Expiration of Option. An Incentive Option may not be exercised to any extent by
anyone after the first to occur of the following events:

               (i) ten (10) years from the date it is granted, unless an earlier time is set in the Award
Agreement;

               (ii) three (3) months after the Termination of Service of the Holder as an Employee (save in
the case of Disability or death); and

               (iii) one (1) year after the date of the Termination of Service of the Holder on account of
Disability or death. Upon the Holder’s Disability or death, any Incentive Options exercisable at
the Holder’s Disability or death may be exercised by the Holder’s legal representative or
representatives, by the person or persons entitled to do so pursuant to the Holder’s last will and
testament or, if the Holder fails to make testamentary disposition of such Incentive Option or dies
intestate, by the person or persons entitled to receive the Incentive Option pursuant to the
applicable laws of descent and distribution as determined under Applicable Law.

          (b) Individual Dollar Limitation. The aggregate Fair Market Value (determined as of
the time the Option is granted) of all Shares with respect to which Incentive Options are first
exercisable by a Holder in any calendar year may not exceed U.S.$100,000 or such other limitation
as may be imposed under Section 422(d) of the Code, or any successor provision. To the extent that
Incentive Options are first exercisable by a Holder in excess of such limitation, the excess shall
be considered Non-Qualified Options.

          (c) Ten Percent Owners. An Incentive Option may not be granted to any individual who,
at the date of grant, owns Shares possessing more than ten percent (10%) of the total combined
voting power of all classes of shares of the Company unless such Incentive Option is granted at a
price that is not less than one hundred and ten percent (110%) of Fair Market Value on the date of
grant and the Incentive Option is exercisable for no more than five years from the date of grant.

          (d) Transfer Restriction. The Holder shall give the Company prompt notice of any
disposition of Shares acquired by exercise of an Incentive Option within:

               (i) two (2) years from the date of grant of such Incentive Option, or

               (ii) one (1) year after the transfer of such Shares to the Holder.

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          (e) Expiration of Incentive Options. No Award of an Incentive Option may be made after
the tenth (10th) anniversary of the Effective Date.

          (f) Right to Exercise. During a Holder’s lifetime, an Incentive Option may be
exercised only by the Holder.

ARTICLE 6.

AWARD OF RESTRICTED SHARES

     6.1 Award of Restricted Share.

          (a) The Committee may grant Restricted Share to Eligible Individuals, and shall determine the
amount and the terms and conditions of, including without limitation the restrictions applicable
to, each award of Restricted Shares, which terms and conditions shall not be inconsistent with the
Plan, and may impose such conditions on the issuance of such Restricted Share as it deems
appropriate.

          (b) The Committee shall specify the purchase price, if any, and form of payment for Restricted
Shares; provided that such purchase price shall be no less than the par value, if any, of
the Shares to be purchased, unless otherwise permitted by Applicable Laws. In all cases, legal
consideration shall be required for each issuance of Restricted Shares.

     6.2 Rights as Shareholders. Subject to Section 6.4, upon issuance of Restricted
Shares, the Holder shall have, unless otherwise provided by the Committee, all the rights of a
Shareholder with respect to such Restricted Shares, subject to the restrictions in his or her Award
Agreement, including the right to receive all dividends and other distributions paid or made with
respect to Shares; provided that any extraordinary distributions with respect to such
Restricted Shares shall be subject to the restrictions set forth in Section 6.3.

     6.3 Restrictions. All Restricted Shares (including any shares received by Holders
thereof with respect to Restricted Shares as a result of share dividends, share splits or any other
form of recapitalization) shall, in the terms of each individual Award Agreement, be subject to
such restrictions and vesting requirements as the Committee shall provide. Such restrictions may
include, without limitation, restrictions concerning voting rights and transferability and such
restrictions may lapse separately or in combination at such times and pursuant to such
circumstances or based on such criteria as selected by the Committee, including, without
limitation, criteria based on the Holder’s duration of employment, directorship or consultancy with
the Service Recipient, or other criteria selected by the Committee. By action taken after the
Restricted Shares are issued, the Committee may, on such terms and conditions as it may determine
to be appropriate, accelerate the vesting of such Restricted Shares by removing any or all of the
restrictions imposed by the terms of the Award Agreement. Restricted Shares may not be sold or
encumbered until all restrictions are terminated or expire.

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     6.4 Repurchase or Forfeiture of Restricted Shares. If no price was paid by the Holder for
the Restricted Shares, upon the Termination of Service of the Holder, the Holder’s rights in
unvested Restricted Shares then subject to restrictions shall lapse and such Restricted Shares
shall be surrendered to the Company and cancelled without consideration. If a purchase price was
paid by the Holder for the Restricted Shares, upon the Termination of Service of the Holder, the
Company shall have the right to repurchase from the Holder the unvested Restricted Shares then
subject to restrictions at a cash price per share equal to the price paid by the Holder for such
Restricted Shares or such other amount as may be specified in the Award Agreement The Committee in
its sole discretion may provide that, in the event of certain events, the Holder’s rights in
unvested Restricted Shares shall not lapse, such Restricted Shares shall vest and shall be
non-forfeitable and, if applicable, the Company shall not have a right of repurchase.

     6.5 Certificates for Restricted Share. Restricted Shares granted pursuant to the Plan
may be evidenced in such manner as the Committee may determine. Certificates or book entries
evidencing Restricted Shares must include an appropriate legend referring to the terms, conditions
and restrictions applicable to the Restricted Shares and the Company may, in its sole discretion,
retain physical possession of any share certificate evidencing Restricted Shares until such time as
all applicable restrictions lapse.

ARTICLE 7.

ADDITIONAL TERMS OF AWARDS

     7.1 Payment. The Committee shall determine the methods by which payments by any
Holder with respect to any Awards granted under the Plan shall be made, including, without
limitation:

          (a) cash or check;

          (b) Shares (including, in the case of payment of the exercise price of an Award, Shares
issuable pursuant to the exercise of the Award) or Shares held for such period of time as may be
required by the Committee in order to avoid adverse accounting consequences under Applicable
Accounting Standards, in each case, having a Fair Market Value on the date of delivery equal to the
aggregate payments required;

          (c) delivery of a notice that the Holder has placed a market sell order with a broker with
respect to Shares then issuable upon exercise or vesting of an Award, and that the broker has been
directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction
of the aggregate payments required; provided that payment of such proceeds is then made to
the Company upon settlement of such sale; or

          (d) other form of legal consideration acceptable to the Committee.

The Committee shall also determine the methods by which Shares shall be delivered or deemed to be
delivered to Holders. Notwithstanding any other provision of the Plan to the contrary, no Holder
shall be permitted to make payment with respect to any Awards granted under the Plan to the extent
prohibited by Applicable Law.

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     7.2 Withholding Tax. No Shares shall be delivered under the Plan to any Holder until such
Holder has made arrangements acceptable to the Committee for the satisfaction of any income,
employment, social welfare or other tax withholding obligations under Applicable Laws. Each
Service Recipient shall have the authority and the right to deduct or withhold, or require a Holder
to remit to the applicable Service Recipient, an amount sufficient to satisfy federal, state, local
and foreign taxes (including the Holder’s employment, social welfare or other tax obligations)
required by Applicable Laws to be withheld with respect to any taxable event concerning a Holder
arising as a result of the Plan. The Committee may, in its sole discretion and in satisfaction of
the foregoing requirement, allow a Holder to elect to have the Company withhold Shares otherwise
issuable under an Award (or allow the surrender of Shares). The number of Shares which may be so
withheld or surrendered shall be limited to the number of Shares which have a Fair Market Value on
the date of withholding or repurchase equal to the aggregate amount of such liabilities based on
the minimum statutory withholding rates for tax purposes that are applicable to such taxable
income. The Committee shall determine the Fair Market Value of the Shares, consistent with
Applicable Laws, for tax withholding obligations due in connection with a broker-assisted cashless
Option exercise involving the sale of shares to pay the Option exercise price or any tax
withholding obligation.

     7.3 Transferability of Awards.

          (a) Except as otherwise provided in Section 7.3(b):

               (i) no Award under the Plan may be sold, pledged, assigned or transferred in any manner other
than by will or the laws of descent and distribution or, subject to the consent of the Committee,
as required under applicable domestic relations laws, unless and until such Award has been
exercised, or the Shares underlying such Award have been issued, and all restrictions applicable to
such shares have lapsed;

               (ii) no Award or interest or right therein shall be liable for the debts, contracts or
engagements of the Holder or his successors in interest or shall be subject to disposition by
transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect, except to the extent
that such disposition is permitted by the preceding sentence; and

               (iii) during the lifetime of the Holder, only the Holder may exercise an Award (or any portion
thereof) granted to him under the Plan, unless it has been disposed of pursuant to applicable
domestic relations law; after the death of the Holder, any exercisable portion of an Award may,
prior to the time when such portion becomes unexercisable under the Plan or the applicable Award
Agreement, be exercised by his personal representative or by any person or persons empowered to do
so under the deceased Holder’s will or under the then Applicable Laws of descent and distribution.

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          (b) Notwithstanding Section 7.3(a), the Committee, in its sole discretion, may determine to permit
a Holder to transfer an Award other than an Incentive Option to certain persons or entities related
to the Holder, including but not limited to members of the Holder’s family, charitable
institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of
the Holder’s family and/or charitable institutions, or to such other persons or entities as may be
expressly approved by the Committee, pursuant to such conditions and procedures as the Committee
may establish, including the following:

               (i) an Award transferred shall not be assignable or transferable other than by will or the
laws of descent and distribution;

               (ii) an Award transferred shall continue to be subject to all the terms and conditions of the
Award as applicable to the original Holder (other than the ability to further transfer the Award);
and

               (iii) the Holder and the permitted transferee shall execute any and all documents requested by
the Committee, including without limitation documents to confirm the status of the transferee as a
permitted transferee, satisfy any requirements for an exemption for the transfer under Applicable
Laws and evidence the transfer.

          (c) Notwithstanding Section 7.3(a), a Holder may, in the manner determined by the Committee,
designate a beneficiary to exercise the rights of the Holder and to receive any distribution with
respect to any Award upon the Holder’s death. A beneficiary, legal guardian, legal representative,
or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of
the Plan and any Award Agreement applicable to the Holder, except to the extent the Plan and Award
Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by
the Committee. If the Holder is married and resides in a community property jurisdiction, a
designation of a person other than the Holder’s spouse as his or her beneficiary with respect to
more than 50% of the Holder’s interest in the Award shall not be effective without the prior
written or electronic consent of the Holder’s spouse. If no beneficiary has been designated or
survives the Holder, payment shall be made to the person entitled thereto pursuant to the Holder’s
will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation
may be changed or revoked by a Holder at any time provided the change or revocation is filed with
the Committee prior to the Holder’s death.

     7.4 Conditions to Issuance of Shares.

          (a) Notwithstanding anything herein to the contrary, the Company shall not be required to
issue or deliver any certificates or make any book entries evidencing Shares pursuant to the
exercise of any Award unless and until the Committee has determined, with advice of counsel, that
the issuance of such Shares is in compliance with all Applicable Laws, and the Shares are covered
by an effective registration statement or applicable exemption from registration. In addition to
the terms and conditions provided herein, the Committee may require that a Holder make such
reasonable covenants, agreements, and representations as the Committee, in its discretion,
deems advisable in order to comply with any such laws, regulations, or requirements.

- 13 -

 

          (b) All Share certificates delivered pursuant to the Plan and all Shares issued pursuant to
book entry procedures are subject to any stop-transfer orders and other restrictions as the
Committee deems necessary or advisable to comply with all Applicable Laws, rules and regulations.
The Committee may place legends on any Shares certificate or book entry to reference restrictions
applicable to the Shares.

          (c) The Committee shall have the right to require any Holder to comply with any timing or
other restrictions with respect to the settlement, distribution or exercise of any Award, including
a window-period limitation.

          (d) No fractional Shares shall be issued and the Committee shall determine, in its sole
discretion, whether cash shall be given in lieu of fractional shares or whether such fractional
shares shall be eliminated by rounding down.

          (e) Notwithstanding any other provision of the Plan, unless otherwise determined by the
Committee or required by any Applicable Law, rule or regulation, the Company shall not deliver to
any Holder certificates evidencing Shares issued in connection with any Award and instead such
Shares shall be recorded in the books of the Company (or, as applicable, its transfer agent or
share plan administrator).

     7.5 Applicable Currency. The Committee shall designate in the Award Agreement the
currency applicable to an Award, which may be in U.S. dollars, Canadian dollars, Chinese Renminbi
or such other currency as the Committee shall determine required under Applicable Law. A Holder
may be required to provide evidence that any currency used to pay the exercise price of any Award
was acquired and taken out of the jurisdiction in which the Holder resides in accordance with
Applicable Laws, including foreign exchange control laws and regulations. If the exercise price
for an Award is paid in a foreign currency, other than that designated in the Award Agreement, as
permitted by the Committee, the amount payable will be determined by conversion at the exchange
rate as selected by the Committee on the date of exercise.

ARTICLE 8.

ADMINISTRATION

     8.1 Committee. A committee of the Board (the “Committee”) shall administer
the Plan (except as otherwise permitted herein). The Committee shall comprise two or more
Non-Employee Directors appointed by and holding office at the pleasure of the Board, each of whom
shall comply with Applicable Laws. Notwithstanding the foregoing:

          (a) the full Board, acting by a majority of its members in office, shall conduct the general
administration of the Plan with respect to Awards granted to Non-Employee Directors; and

          (b) the Board or the Committee may delegate its authority hereunder to the extent permitted by
Section 8.6.

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     8.2 Duties and Powers of Committee. The Committee shall be responsible for the
general administration of the Plan in accordance with its provisions. The Committee shall have the
power to interpret the Plan and the Award Agreements and to adopt such rules for the
administration, interpretation and application of the Plan as are not inconsistent therewith, to
interpret, amend or revoke any such rules and to amend any Award Agreement provided that the rights
or obligations of the Holder of the Award that is the subject of any such Award Agreement are not
affected adversely by such amendment, unless the consent of the Holder is obtained or such
amendment is otherwise permitted under Section 9.10. Any such grant or award under the Plan need
not be the same with respect to each Holder. Any such interpretations and rules with respect to
Incentive Options shall be consistent with the provisions of Section 422 of the Code. In its sole
discretion, the Board may at any time and from time to time exercise any and all rights and duties
of the Committee under the Plan except with respect to matters which under Applicable Law are
required to be determined in the sole discretion of the Committee.

     8.3 Action by the Committee. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member by any officer or
other employee of a Service Recipient, the Company’s independent certified public accountants or
any executive compensation consultant or other professional retained by the Company to assist in
the administration of the Plan.

     8.4 Authority of Committee. Subject to any specific designation in the Plan, the
Committee has the exclusive power, authority and sole discretion to:

               (a) designate Eligible Individuals to receive Awards;

               (b) determine the type or types of Awards to be granted to each Eligible Individual;

               (c) determine the number of Awards to be granted and the number of Shares to which an Award
will relate;

               (d) determine the terms and conditions of any Award granted pursuant to the Plan, including,
but not limited to, the exercise price, grant price, or purchase price, any reload provision, any
restrictions or limitations on the Award, any schedule for vesting, lapse of forfeiture
restrictions or restrictions on the exercisability of an Award, and accelerations or waivers
thereof, and any provisions related to non-competition and recapture of gain on an Award, based in
each case on such considerations as the Committee in its sole discretion determines;

               (e) determine whether, to what extent, and pursuant to what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in cash, Shares, other Awards, or other
property, or an Award may be canceled, forfeited, or surrendered;

               (f) prescribe the form of each Award Agreement, which need not be identical for each Holder;

               (g) decide all other matters that must be determined in connection with an Award;

- 15 -

 

               (h) establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to
administer the Plan;

               (i) interpret the terms of, and any matter arising pursuant to, the Plan or any Award
Agreement; and

               (j) make all other decisions and determinations that may be required pursuant to the Plan or
as the Committee deems necessary or advisable to administer the Plan.

     8.5 Decisions Binding. The Committee’s interpretation of the Plan, any Award granted
pursuant to the Plan and any Award Agreement and all decisions and determinations by the Committee
with respect to the Plan are final, binding, and conclusive on all parties.

     8.6 Delegation of Authority. To the extent permitted by Applicable Laws, the Board or
the Committee may from time to time delegate to a committee of one or more members of the Board or
one or more officers of the Company the authority to carry out the day-to-day administration of the
Plan subject at all times to the control and direction of the Board or the Committee; provided
that, in no event, shall any delegatee be delegated the authority to grant or amend Awards.
Any delegation hereunder shall be subject to such restrictions and limits as the Board or the
Committee specifies at the time of such delegation, and the Board or the Committee may at any time
rescind the authority so delegated or appoint a new delegatee. At all times, the delegatee shall
serve at the pleasure of the Board or the Committee.

ARTICLE 9.

MISCELLANEOUS PROVISIONS

     9.1 Effective Date. The Plan was originally effective on March 15, 2006 (the
“Effective Date”). This amendment and restatement of the Plan will be effective on the
date it is approved by the Shareholders (the “Restatement Effective Date”). The amendment
and restatement of the Plan will be deemed to be approved by the Shareholders if it receives the
affirmative vote of a majority (in excess of 50%) of the votes of the Shares entitled to vote and
present or represented at a meeting duly held in accordance with Applicable Laws.

     9.2 Expiration Date. The Plan will expire on, and no Award may be granted pursuant to
the Plan after, the tenth (10th) anniversary of the Restatement Effective Date. Any
Awards that are outstanding on the tenth (10th) anniversary of the Restatement Effective
Date shall remain in force according to the terms of the Plan and the applicable Award Agreement.

     9.3 Amendment or Termination of the Plan. Except as otherwise provided in this
Section 9.3, at any time and from time to time, the Committee may terminate, amend or modify the
Plan; provided that:

               (a) to the extent necessary and desirable to comply with Applicable Laws, the Company shall
obtain Shareholder approval of any Plan amendment in such a manner and to such a degree as
required, and

               (b) Shareholder approval is required for any amendment to the Plan that:

- 16 -

 

                    (i) increases the number of Shares available under the Plan (other than any adjustment as provided
by Article 10),

                    (ii) permits the Committee to extend the exercise period for an Option beyond ten (10) years
from the date of grant, or

                    (iii) results in a material increase in benefits or a change in eligibility requirements.

Except as provided in the Plan or any Award Agreement, no amendment, suspension or termination of
the Plan shall, without the consent of the Holder, impair any rights or obligations under any Award
theretofore granted or awarded.

     9.4 No Shareholders Rights. Except as otherwise provided herein, a Holder shall have
none of the rights of a Shareholder with respect to Shares covered by any Award until the Holder
becomes the record owner of such Shares.

     9.5 Paperless Administration. In the event that the Company establishes, for itself
or using the services of a third party, an automated system for the documentation, granting or
exercise of Awards, such as a system using an internet website or interactive voice response, then
the paperless documentation, granting or exercise of Awards by a Holder may be permitted through
the use of such an automated system.

     9.6 Effect of Plan upon Other Compensation Plans. The adoption of the Plan shall not
affect any other compensation or incentive plans in effect for a Service Recipient. Nothing in the
Plan shall be construed to limit the right of a Service Recipient:

               (a) to establish any other forms of incentives or compensation for Eligible Individuals, or

               (b) to grant or assume options or other rights or awards otherwise than under the Plan in
connection with any proper corporate purpose, including without limitation, the grant or assumption
of options in connection with the acquisition by purchase, lease, merger, consolidation or
otherwise, of the business, securities or assets of any corporation, partnership, limited liability
company, firm or association.

     9.7 Compliance with Laws. The Plan, the granting and vesting of Awards under the Plan
and the issuance and delivery of Shares and the payment of money under the Plan or under Awards
granted or awarded under the Plan are subject to compliance with all Applicable Laws and to such
approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel
for the Company, be necessary or advisable in connection therewith. Any securities delivered under
the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if
requested by the Company, provide such assurances and representations to the Company as the Company
may deem necessary or desirable to assure compliance with all applicable legal requirements. To
the extent permitted by Applicable Law, the Plan and Awards granted or awarded hereunder shall be
deemed amended to the extent necessary to conform to such laws, rules and regulations.

- 17 -

 

     9.8 Titles and Headings, References to Sections of the Code or Exchange Act. The titles
and headings of the Sections in the Plan are for convenience of reference only and, in the event of
any conflict, the text of the Plan, rather than such titles or headings, shall control. References
to sections of the Code or the Exchange Act shall include any amendment or successor thereto.

     9.9 Governing Law. The Plan and any agreements hereunder shall be administered,
interpreted and enforced under the internal laws of Canada, without regard to conflicts
of laws thereof.

     9.10 Section 409A. To the extent that the Committee determines that any Award granted
under the Plan is subject to Section 409A of the Code, the Award Agreement evidencing such Award
shall incorporate the terms and conditions required by Section 409A of the Code. To the extent
applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of
the Code and Department of Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be issued after the
Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that
following the Effective Date the Committee determines that any Award may be subject to Section 409A
of the Code and related Department of Treasury guidance (including such Department of Treasury
guidance as may be issued after the Effective Date), the Committee may adopt such amendments to the
Plan and the applicable Award Agreement or adopt other policies and procedures (including
amendments, policies and procedures with retroactive effect), or take any other actions, that the
Committee determines are necessary or appropriate to:

               (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment
of the benefits provided with respect to the Award, or

               (b) comply with the requirements of Section 409A of the Code and related Department of
Treasury guidance and thereby avoid the application of any penalty taxes under such Section.

     9.11 No Rights to Awards. No Eligible Individual or other person shall have any claim
to be granted any Award pursuant to the Plan, and neither the Company nor the Committee is
obligated to treat Eligible Individuals, Holders or any other persons uniformly.

     9.12 No Right to Employment or Services. Nothing in the Plan or any Award Agreement
shall interfere with or limit in any way the right of the Service Recipient to terminate any
Holder’s employment or services at any time, nor confer upon any Holder any right to continue in
the employ or service of any Service Recipient.

     9.13 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for
incentive compensation. With respect to any payments not yet made to a Holder pursuant to an
Award, nothing contained in the Plan or any Award Agreement shall give the Holder any rights that
are greater than those of a general creditor of the Company, any Subsidiary or any Related Entity.

- 18 -

 

     9.14 Indemnification. To the extent allowable pursuant to Applicable Laws, each member of
the Committee or of the Board shall be indemnified and held harmless by the Company from any loss,
cost, liability, or expense that may be imposed upon or reasonably incurred by such member in
connection with or resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action or failure to act pursuant to
the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in
such action, suit, or proceeding against him or her; provided that he or she gives the
Company an opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such persons
may be entitled pursuant to the Company’s Articles, as a matter of law, or otherwise, or any power
that the Company may have to indemnify them or hold them harmless.

     9.15 Relationship to other Benefits. No payment pursuant to the Plan shall be taken
into account in determining any benefits under any pension, retirement, savings, profit sharing,
group insurance, welfare or other benefit plan of any Service Recipient except to the extent
otherwise expressly provided in writing in such other plan or an agreement thereunder.

     9.16 Expenses. The expenses of administering the Plan shall be borne by the Service
Recipients.

ARTICLE 10.

CHANGES IN CAPITAL STRUCTURE

     10.1 Adjustments. In the event of any distribution, share split, combination or
exchange of Shares, amalgamation, arrangement or consolidation, reorganization of the Company,
including the Company becoming a subsidiary in a transaction not involving a Corporate Transaction,
spin-off, recapitalization or other distribution (other than normal cash dividends) of Company
assets to Shareholders, or any other change affecting the Shares or the share price of a Share, the
Committee shall make such proportionate and equitable adjustments, if any, to reflect such change
with respect to:

               (a) the aggregate number and type of shares that may be issued under the Plan (including, but
not limited to, adjustments of the limitations in Section 3.1 and substitutions of shares in a
parent or surviving company);

               (b) the terms and conditions of any outstanding Awards (including, without limitation, any
applicable performance targets or criteria with respect thereto); and

               (c) the grant or exercise price per share for any outstanding Awards under the Plan. The form
and manner of any such adjustments shall be determined by the Committee in its sole discretion.

- 19 -

 

     10.2 Corporate Transactions. Except as may otherwise be provided in any Award Agreement or
any other written agreement entered into by and between the Company and a Holder, if a Corporate
Transaction occurs and a Holder’s Awards are not converted, assumed, or replaced by a successor as
provided in Section 10.3, such Awards shall become fully exercisable and all forfeiture
restrictions on such Awards shall lapse. Upon, or in anticipation of, a Corporate Transaction, the
Committee may in its sole discretion provide for:

               (a) any and all Awards outstanding hereunder to terminate at a specific time in the future and
shall give each Holder the right to exercise such Awards during a period of time as the Committee
shall determine,

               (b) either the purchase of any Award for an amount of cash equal to the amount that could have
been attained upon the exercise of such Award or realization of the Holder’s rights had such Award
been currently exercisable or payable or fully vested (and, for the avoidance of doubt, if as of
such date the Committee determines in good faith that no amount would have been attained upon the
exercise of such Award or realization of the Holder’s rights, then such Award may be terminated by
the Company without payment), or

               (c) the replacement of such Award with other rights or property selected by the Committee in
its sole discretion or the assumption of or substitution of such Award by the successor or
surviving corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the
number and kind of Shares and prices.

     10.3 Assumption of Awards — Corporate Transactions. In the event of a Corporate
Transaction, each Award may be assumed by the successor entity in connection with the Corporate
Transaction. Except as provided otherwise in an Award Agreement, an Award will be considered
assumed if the Award either is:

               (a) assumed by the successor entity or replaced with a comparable Award (as determined by the
Committee) with respect to capital shares (or equivalent) of the successor entity or Parent
thereof; or

               (b) replaced with a cash incentive program of the successor entity which preserves the
compensation element of such Award existing at the time of the Corporate Transaction and provides
for subsequent payout in accordance with the same vesting schedule applicable to such Award.

If an Award is assumed in a Corporate Transaction, then such Award, the replacement Award or the
cash incentive program automatically shall become fully vested, exercisable and payable and be
released from any restrictions on transfer (other than transfer restrictions applicable to Options)
and repurchase or forfeiture rights, immediately upon termination of the Holder’s employment or
service with all Service Recipients within twelve (12) months of the Corporate Transaction without
cause.

- 20 -

 

     10.4 Outstanding Awards — Other Changes. In the event of any other change in the
capitalization of the Company or corporate change other than those specifically referred to in this
Article 12, the Committee may, in its absolute discretion, make such adjustments in the number and
class of shares subject to Awards outstanding on the date on which such change occurs and in the
per share grant or exercise price of each Award as the Committee may consider appropriate to
prevent dilution or enlargement of rights.

     10.5 No Other Rights. Except as expressly provided in the Plan, no Holder shall have
any rights by reason of any subdivision or consolidation of shares of any class, the payment of any
dividend, any increase or decrease in the number of shares of any class or any dissolution,
liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly
provided in the Plan or pursuant to action of the Committee under the Plan, no issuance by the
Company of shares of any class, or securities convertible into shares of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number of shares subject to
an Award or the grant or exercise price of any Award.

* * * * *

The
foregoing Amended and Restated Plan was approved by the Board on
August 9, 2010.

* * * * *

The
foregoing Amended and Restated Plan was approved by the Shareholders
on September 20, 2010.

* * * * *

Executed on September 20, 2010.

	 	 	 	 	 
	 	/s/
Shawn (Xiaohua) Qu
	 
	 	President and Chief Executive Officer	 
	 	 	 
	 	 	 
	 

- 21 -exv4w7

EXHIBIT
4.7

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is entered into as of
[_________________________, _____] by and between Canadian Solar Inc., a Canadian corporation (the
“Company”) and [___________________________________________] (the “Employee”).

RECITAL

     The Company desires to employ the Employee, and the Employee desires to serve the Company, as
its [___________________________________________________________] on the terms and conditions of
this Agreement.

AGREEMENT

     The parties agree as follows:

	1.	 	EMPLOYMENT

	 	 	The Company shall employ the Employee, and the Employee shall serve the Company, as its
[___________________________________________________] (the “Employment”) on the
terms and conditions of this Agreement.

	2.	 	TERM OF EMPLOYMENT

	 	 	The Employment shall commence on [_________________________, _____] (the “Effective
Date”) and continue until terminated in accordance with this Agreement.

	3.	 	DUTIES AND RESPONSIBILITIES

	(a)	 	Duties and Responsibilities. The Employee shall have the duties and responsibilities
set out in Schedule A and such other duties and responsibilities consistent with the
Employment as may be assigned to him/her by the board of the directors of the Company (the
“Board”) or by those officers of the Company to whom the Employee reports.

	(b)	 	Reporting. In carrying out his/her duties and responsibilities, the Employee shall
report to those officers of the Company set out in Schedule A.

	(c)	 	Full Time Service. The Employee shall devote all of his/her time, attention and
skills to the business and affairs of the Company and shall not, without the prior written
consent of the Board, engage in or otherwise be concerned with any other business or
occupation or become a director, officer or employee of any other person other than the
Company and its subsidiaries.

 

- 2 -

	(d)	 	Company Policies. The Employee shall comply with the terms and conditions of this
Agreement, the charter documents of the Company and the guidelines, policies and procedures of
the Company approved from time to time by the Board. The Employee acknowledges that his/her
failure to do so shall constitute grounds for the Company to terminate the Employment for
Cause.

	4.	 	LOCATION OF EMPLOYMENT

	(a)	 	Location. The Employee’s location of Employment is [_______________________].

	(b)	 	Travel/Secondment. The Employee acknowledges that, in carrying out his/her duties
and responsibilities, he/she may be required to travel frequently to places other than his/her
location of employment and may be seconded for reasonable periods of time to other places
where the Company and its subsidiaries carry on business.

	5.	 	COMPENSATION AND EXPENSES

	(a)	 	Base Salary. The Company shall pay the Employee a base salary. The initial amount
and timing of payment of the Employee’s base salary is set out in Schedule B. The
Company shall review and may adjust the Employee’s base salary annually.

	(b)	 	Employee Bonus Plan. The Employee shall be eligible to participate in the employee
bonus plan of the Company (the “Employee Bonus Plan”) and, if the Employee is in the
Employment at the end of a calendar year, to receive a performance bonus for the calendar year
of up to [___]% of the Employee’s annual base salary for the calendar year. Any performance
bonus to which the Employee is entitled for a calendar year shall be paid to the Employee
within thirty (30) days after the release of the audited financial statements of the Company
for the calendar year.

	 	 	The Employee acknowledges that his/her entitlement to receive a performance bonus under the
Employee Bonus Plan for any year is subject to the achievement of base and personal,
departmental and company-wide objectives/targets established by the Company for the year and
is subject to the discretion of the Board or a designated committee of the Board.

	(c)	 	Stock Option Plan. The Employee shall be eligible to participate in the share
incentive plan of the Company (the “Stock Option Plan”) and to receive stock options
thereunder.

	 	 	The Employee acknowledges that any grant of options under the Stock Option Plan is subject
to the discretion of the Board or a designated committee of the Board and that all grants of
options under the Stock Option Plan are subject to the terms and conditions of the
applicable grant and the Stock Option Plan.

	(d)	 	Standard Employee Benefit Plans. Subject to the eligibility requirements and the
other terms and conditions thereof, the Employee shall be eligible to participate in all
standard employee benefit plans of the Company, including any retirement plan, life or
disability insurance plan, medical, dental or other health insurance plan and short or
long-term disability plan.

	(e)	 	Additional Benefits. The Employee shall be entitled to the additional benefits set
out in Schedule C.

 

- 3 -

	(f)	 	Vacation. The Employee shall be entitled to [_______] weeks paid vacation per year
(pro rated for part years).

	 	 	The Employee shall take his vacation at a time or times reasonable for each of the Company
and the Employee in the circumstances. Any unused vacation time from one year may not be
carried over into the following year without the consent of the Company.

	(g)	 	Employment Expenses. The Employee shall be entitled to be reimbursed in accordance
with the guidelines, policies and procedures of the Company for all reasonable out-of-pocket
expenses properly incurred by him/her in the course of the Employment.

	(h)	 	Deductions. All amounts paid and benefits provided by the Company to the Employee
under the Agreement are subject to such withholdings and deductions as may be required by law.

	6.	 	TERMINATION OF EMPLOYMENT

	(a)	 	Death. The Employment shall terminate on the death of the Employee.

	(b)	 	By the Company. The Company may terminate the Employment for Cause, at any time,
without notice.

	 	 	“Cause” means that the Employee has:

	 	(1)	 	committed a felony or indictable offence or an act of fraud, misappropriation
or embezzlement;
	 
	 	(2)	 	been negligent or acted dishonestly to the detriment of the Company;
	 
	 	(3)	 	engaged in actions amounting to misconduct; or
	 
	 	(4)	 	failed to perform his/her duties and responsibilities under this Agreement and
such failure continues after the Employee is afforded a reasonable opportunity to cure
such failure.

	 	 	The Company may terminate the Employment for any reason other than Cause, at any time, by
giving written notice of termination to the Employee.

	(c)	 	By the Employee. The Employee may terminate the Employment for any reason, at any
time, by giving 60 days written notice of termination to the Company.

	7.	 	PAYMENT ON TERMINATION OF EMPLOYMENT

	(a)	 	Termination by the Company for Cause. If the Company terminates the Employment for
Cause, the Company shall pay to the Employee, within thirty (30) days following the date of
termination of the Employment, a lump sum amount equal to the aggregate of any base salary
earned but not received, and any vacation days accrued but not taken, by the Employee before
the date of termination of the Employment.

 

- 4 -

	 	 	The Employee shall not be entitled to receive any other payment or benefit from the Company
in respect of the termination of the Employment.

	(b)	 	Termination by the Company for Disability. If the Company terminates the Employment
for Disability:

	 	(1)	 	the Company shall pay to the Employee, within thirty (30) days following the
date of termination of the Employment, a lump sum amount equal to the aggregate of:

	 	(i)	 	any base salary earned but not received by the Employee before
the date of termination of the Employment,
	 
	 	(ii)	 	any vacation days accrued but not taken by the Employee before
the date of termination of the Employment, and
	 
	 	(iii)	 	any bonus earned by but not paid to the Employee for any year
preceding the year in which the date of termination of the Employment occurs;
and

	 	(2)	 	subject to the Employee complying with Sections 8, 9 and 10 and executing a
release in the Company’s customary form,

	 	(i)	 	the Company shall continue to pay, in accordance with Company’s
normal payroll practices, the Employee’s base salary for a period of six (6)
months following the date of termination of the Employment; provided that the
aggregate amount payable to the Employee pursuant to this Section 7(b)(2)(i)
shall be reduced by the amount of any payment in lieu of notice or other
severance payment which the Employee may be entitled to receive at law or
pursuant to Company policy with respect to the termination of the Employment,
with such reduction being applied to the first payments otherwise payable; and

	 	(ii)	 	the Employee shall be entitled:

	 	(A)	 	to receive the disability benefits, if any, to
which he/she may be entitled in respect of the Disability under any
disability plan of the Company; and
	 
	 	(B)	 	to continue to receive the other benefits, if
any, to which he/she is entitled to receive under Sections 5(d) and (e)
at the date of termination of the Employment for a period of six (6)
months following the date of termination of the Employment.

	 	 	The Employee shall not be entitled to receive any other payment or benefit from the Company
in respect of the termination of the Employment.

	 	 	“Disability” means any physical or mental illness or condition of the Employee that
is reasonably expected to continue for at least six (6) months and interfere materially with
his/her ability to carry out his/her duties and responsibilities of the Employment.

 

- 5 -

	(c)	 	Termination by the Company for any Reason other than Cause or Disability. If the
Company terminates the Employment for any reason other than Cause or Disability:

	 	(1)	 	the Company shall pay to the Employee, within thirty (30) days following the
date of termination of the Employment, a lump sum amount equal to the aggregate of:

	 	(i)	 	any base salary earned but not received by the Employee for the
period preceding the date of termination of the Employment,

	 	(ii)	 	any vacation days accrued but not taken by the Employee before
the date of termination of the Employment, and

	 	(iii)	 	any bonus earned by but not paid to the Employee for any year
preceding the year in which the date of termination of the Employment occurs;
and

	 	(2)	 	subject to the Employee’s complying with Sections 8, 9 and 10 and executing a
release in the Company’s customary form,

	 	(i)	 	the Company shall continue to pay, in accordance with Company’s
normal payroll practices, the Employee’s base salary for a period of six (6)
months following the date of termination of the Employment; provided that the
aggregate amount payable to the Employee pursuant to this Section 7(c)(2)(i)
shall be reduced by the amount of any payment in lieu of notice or other
severance payment which the Employee may be entitled to receive at law or
pursuant to Company policy with respect to the termination of the Employment,
with such reduction being applied to the first payments otherwise payable; and
	 
	 	(ii)	 	the Employee shall continue to be entitled to receive the
benefits, if any, to which he/she is entitled to receive under Sections 5(d)
and (e) at the date of termination of the Employment for a period of six (6)
months following the date of termination of the Employment.

	 	 	The Employee shall not be entitled to receive any other payment or benefit from the Company
in respect of the termination of the Employment.

	(d)	 	Termination by the Employee for Good Reason. If the Employee terminates the
Employment for Good Reason:

	 	(1)	 	the Company shall pay to the Employee, within thirty (30) days following the
date of termination of the Employment, a lump sum amount equal to the aggregate of:

	 	(i)	 	any base salary earned by but not paid to the Employee for the
period preceding the date of termination of the Employment,
	 
	 	(ii)	 	any vacation days accrued but not taken by the Employee before
the date of termination of the Employment, and

 

- 6 -

	 	(iii)	 	any bonus earned by but not paid to the Employee for any year
preceding the year in which the date of termination of the Employment occurs;
and

	 	(2)	 	subject to the Employee’s complying with Sections 8, 9 and 10 and executing a
release in the Company’s customary form,

	 	(i)	 	the Company shall continue to pay, in accordance with Company’s
normal payroll practices, the Employee’s base salary for a period of six (6)
months following the date of termination of the Employment; provided that the
aggregate amount payable to the Employee pursuant to this Section 7(d)(2)(i)
shall be reduced by the amount of any payment in lieu of notice or other
severance payment which the Employee may be entitled to receive at law or
pursuant to Company policy with respect to the termination of the Employment,
with such reduction being applied to the first payments otherwise payable; and
	 
	 	(ii)	 	the Employee shall continue to be entitled to receive the
benefits, if any, to which he/she is entitled to receive under Sections 5(d)
and (e) at the date of termination of the Employment for a period of six (6)
months following the date of termination of the Employment.

	 	 	The Employee shall not be entitled to receive any other payment from the Company in respect
of the termination of the Employment.

	 	 	“Good Reason” means any material reduction in the Employee’s titles, duties and
responsibilities or any material reduction in the Employee’s base salary, which continues
for more than thirty (30) days after the Employee has given written notice to the Company
that the Employee believes in good faith that an event constituting Good Reason has
occurred; provided that such notice is given within ninety (90) days after such event
occurs. For clarity, a change of supervision which does not result in a reduction in the
Employee’s titles, duties or responsibilities does not constitute a material reduction.

	(e)	 	Termination by the Employee for any Reason other than Good Reason. If the Employee
terminates the Employment for any reason other than Good Reason, the Company shall pay to the
Employee, within thirty (30) days following the date of termination of the Employment, a lump
sum amount equal to the aggregate of any base salary earned but not received, and any vacation
days accrued but not taken, by the Employee before the date of termination of the Employment.

	 	 	The Employee shall not be entitled to receive any other payment or benefit from the Company
in respect of the termination of the Employment.

 

- 7 -

	8.	 	CONFIDENTIAL INFORMATION

	(a)	 	Acknowledgments. The Employee acknowledges that:

	 	(1)	 	during the Employment, he/she may have access to commercially sensitive
information that is not in the public domain concerning the business and affairs of the
Company, including trade secrets and information concerning the finances, employees,
technology, processes, facilities, products, suppliers, customers and markets of the
Company and its subsidiaries (the “Confidential Information”);
	 
	 	(2)	 	the Confidential Information is confidential; and
	 
	 	(3)	 	the Confidential Information and all materials containing the Confidential
Information are the property of the Company and its subsidiaries or their customers or
suppliers.

	(b)	 	No Disclosure or Use. During and after the Employment, the Employee shall not
directly or indirectly disclose or use any of the Confidential Information except as required
in the performance of the Employee’s duties and responsibilities in connection with the
Employment, or as required pursuant to applicable law.

	(c)	 	Return. On the termination of the Employment, the Employee shall return the
Confidential Information and all materials containing the Confidential Information to the
Company.

	9.	 	INVENTIONS

	(a)	 	Acknowledgement. The Employee acknowledges that the Company engages in research and
development activities in connection with its business and that, as an essential part of the
Employment, the Employee is expected to make new contributions to and create inventions of
value for the Company.

	(b)	 	Inventions. The Employee shall disclose in confidence to the Company all inventions,
improvements, designs, original works of authorship, formulas, processes, compositions of
matter, computer software programs, databases, mask works and trade secrets (collectively, the
“Inventions”), which the Employee may solely or jointly conceive or develop or reduce
to practice, or cause to be conceived or developed or reduced to practice, during the
Employment.

	 	 	The Employee acknowledges and agrees that all Inventions shall be the sole and exclusive
property of the Company and the Employee hereby assigns all of his/her right, title and
interest in and to any and all of the Inventions to the Company and its successor in
interest without further consideration.

	 	 	During and after the termination of the Employment, the Employee shall, at the request of
the Company, assist the Company to the fullest extent possible to obtain for the Company and
enforce patents, copyrights, mask work rights, trade secret rights and other legal
protection for the Inventions, including executing any documents that the Company may
reasonably request for such purpose. The Employee appoints the Secretary of the Company as
the Employee’s attorney-in-fact to execute such documents on behalf of the Employee. The
Company shall compensate the Employee 

 

- 8 -

	 	 	at a reasonable hourly rate for the time spent, and
reimburse the Employee for the reasonable expenses incurred, by him/her in providing such
assistance after the termination of the Employment.

	(c)	 	Copyrightable Works. The Employee acknowledges and agrees that all copyrightable
works prepared by the Employee within the scope of and during the Employment are “works for
hire” and that the Company will be considered the author thereof.

	10.	 	NON-COMPETITION

	 	 	During, and within one year after the termination of, the Employment:

	 	(a)	 	the Employee shall not directly or indirectly communicate or have any other
dealings with the customers or suppliers of the Company that would be likely to harm
the business relationship between the Company and its customers or suppliers;
	 
	 	(b)	 	unless agreed to in writing by the Company, the Employee shall not directly or
indirectly:

	 	(1)	 	provide services, whether as a director, officer, employee,
independent contractor or otherwise, to a Competitor; or
	 
	 	(2)	 	acquire or hold any interest in, whether as a shareholder,
partner or otherwise, any Competitor; provided that nothing in this
Section 10(b)(2) shall preclude the Employee from holding up to 5% of the
outstanding shares or other securities of a Competitor that is listed on any
securities exchange or recognized securities market; and

	 	(c)	 	unless agreed to in writing by the Company, directly or indirectly solicit,
whether by offer of employment or otherwise, the services of any employee of the
Company.

	 	 	“Competitor” means a person that directly or indirectly carries on business in any
jurisdiction where the Company or any of its subsidiaries carries on business if that person
or any subsidiary or division of that person generates more than 10% of its revenues from
solar power products and services similar to those provided by the Company.

	 	 	The provisions of this Section 10 shall be separate and severable, enforceable independently
of each other, and independently of any other provision of this Agreement.

	 	 	The Employee acknowledges and agrees that the provisions of this Section 10 are fair and
reasonable.

	 	 	If any of the provisions of this Section 10 are determined to be invalid under applicable
law but would be valid if some part of them was deleted or the period or area of application
reduced, such provisions shall apply with such modification as may be necessary to make them
valid.

 

- 9 -

	11.	 	GENERAL

	(a)	 	Section 409A. If and to the extent that Section 409A (“Section 409A”) of the
United States Internal Revenue Code of 1986, as amended (the “Code”) applies to this
Agreement, this Agreement shall be interpreted in accordance with, and incorporate the terms
and conditions required by, Section 409A and the provisions of Schedule D shall apply.

	(b)	 	Notice. Any notice or other communication to be given pursuant to this Agreement
shall be in writing and shall be effective if delivered personally or sent by electronic
transmission as follows:

	 	 	 

	 

	 	if to the Company:

     Canadian Solar Inc.

     [_______________]

     [_______________]

     [_______________]

     Attention: [_______________]

     Email:       [_______________]
	 
	 	 
	 

	 	if to the Employee:

     [_______________]

     [_______________]

     [_______________]

     Email:       [_______________]

	 	 	or to such other address as a party may from time to time advise. Any such notice or other
communication (including a change of address) shall be deemed to have been given when
received.

	(c)	 	Entire Agreement. This Agreement constitutes the entire agreement and understanding
between the Employee and the Company regarding the Employment and supersedes all prior or
contemporaneous oral or written agreements concerning such subject matter. The Employee
acknowledges that he/she has not entered into this Agreement in reliance upon any
representation, warranty or undertaking which is not set forth in this Agreement.

	(d)	 	Amendment. Any amendment to this Agreement must be in writing and signed by the
Employee and the Company.

	(e)	 	Governing Law; Consent to Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of [_____________] without regard to its conflicts of
laws provisions.

	 	 	The parties irrevocably submit to the exclusive jurisdiction of the [_________________]
courts over any suit, action or proceeding arising out of or relating to this Agreement.

 

- 10 -

	 	 	To the fullest extent they may effectively do so under applicable law, the parties
irrevocably waive and agree not to assert, by way of motion, as a defence or otherwise, any
claim that they are not subject to the jurisdiction of the [______________] courts, any
objection that they may now or hereafter have to the laying of the venue of any such suit,
action or proceeding brought in the [_____________] courts and any claim that any such suit,
action or proceeding brought in the [_____________] courts has been brought in an
inconvenient forum.

	(f)	 	Interpretation. The following rules of interpretation apply to this Agreement unless
the context requires otherwise:

	 	(1)	 	the singular includes the plural and conversely;
	 
	 	(2)	 	a gender includes all genders;
	 
	 	(3)	 	where a word or phrase is defined, its other grammatical forms have a
corresponding meaning;
	 
	 	(4)	 	a reference to a person includes an individual, a trust, a corporation, an
unincorporated body and any other entity;
	 
	 	(5)	 	a reference to a Section is to a Section of this Agreement;
	 
	 	(6)	 	a reference to a party includes the party’s legal representatives, successors
and permitted assigns;
	 
	 	(7)	 	mentioning anything after “include”, “includes” or “including” does not limit
what else might be included; and
	 
	 	(8)	 	time is of the essence.

	 	 	 	 	 	 	 	 	 

	IN WITNESS WHEREOF, the parties have executed this Agreement.
	 
	 	 	 	 	 	 	 	 
	Canadian Solar Inc.	 	Employee	 	 
	 
	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	Signature:	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	Name:

	 	 	 	Name:	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	Title:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 

 

 

SCHEDULE A

DUTIES AND RESPONSIBILITIES

The Employee’s duties and responsibilities are as follows:

[______________________________].

In carrying out his/her duties and responsibilities, the Employee shall report to:

[______________________________].

 

 

SCHEDULE B

BASE SALARY

The Employee’s base salary on the Effective Date is [_______________] per year (________ per
month), payable [_______________________] in arrears.

 

 

SCHEDULE C

ADDITIONAL BENEFITS

The Employee’s additional benefits are as follows:

	(a)	 	Medical Plan. The Company shall pay the reasonable cost of membership for the
Employee, the Employee’s spouse and the Employee’s dependent children who are not over 21
years of age in a medical plan with such reputable medical expense insurance provider as the
Company shall decide from time to time.

	(b)	 	[_________________________].

 

 

SCHEDULE D

SECTION 409A OF THE CODE

     If the Company determines that any amounts payable hereunder will be immediately taxable to
the Employee under Section 409A,

	(a)	 	the Company reserves the right (without any obligation to do so or to indemnify the Employee
for failure to do so):

	 	(1)	 	to adopt such amendments to this Agreement or such other policies and
procedures (including amendments, policies and procedures with retroactive effect) as
it determines to be necessary or appropriate to preserve the intended tax treatment of
the benefits provided by this Agreement, to preserve the economic benefits of this
Agreement and to avoid less favorable accounting or tax consequences for the Company;
and/or
	 
	 	(2)	 	to take such other actions it determines to be necessary or appropriate to
exempt the amounts payable hereunder from Section 409A or to comply with the
requirements of Section 409A and thereby avoid the application of penalty taxes
thereunder,

	 	 	provided that nothing in this Agreement shall be interpreted or construed to
transfer any liability for failure to comply with the requirements of Section 409A from the
Employee or any other individual to the Company or any of its affiliates, employees or
agents; and

	(b)	 	notwithstanding anything herein to the contrary:

	 	(1)	 	no termination or other similar payments and benefits hereunder shall be
payable unless the termination of the Employment constitutes a “separation from
service” within the meaning of Section 1.409A-1(h) of the Department of Treasury
Regulations (the “Regulations”);
	 
	 	(2)	 	if the Employee is deemed at the time of the Employee’s “separation from
service” to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the
Code, to the extent delayed commencement of any portion of any termination or other
similar payments and benefits to which the Employee may be entitled hereunder (after
taking into account all exclusions applicable to such payments or benefits under
Section 409A) is required in order to avoid a prohibited distribution under Section
409A(a)(2)(B)(i) of the Code, such portion of such payments and benefits shall not be
provided to the Employee prior to the earlier of:

	 	(i)	 	the expiration of the six-month period measured from the date
of the Employee’s “separation from service”, and
	 
	 	(ii)	 	the date of the Employee’s death;

 

- 15 -

	 	 	 	provided that upon the earlier of such dates, all payments and benefits deferred
pursuant to this Section 11(b)(ii) shall be paid in a lump sum to the Employee, and
any remaining payments and benefits due hereunder shall be provided as otherwise
specified herein;
	 
	 	(3)	 	the determination of whether the Employee is a “specified employee” as of the
time of the Employee’s separation from service shall be made by the Company in
accordance with the terms of Section 409A (including Section 1.409A-1(i) of the
Regulations and any successor provision thereto);
	 
	 	(4)	 	to the extent that any installment payments under this Agreement are deemed to
constitute “nonqualified deferred compensation” within the meaning of Section 409A for
purposes of Section 409A (including for purposes of Section 1.409A-2(b)(2)(iii) of the
Regulations), each such payment shall be treated as a separate and distinct payment;
	 
	 	(5)	 	to the extent that any reimbursements or corresponding in-kind benefits
provided to the Employee under this Agreement are deemed to constitute “deferred
compensation” under Section 409A, such reimbursements or benefits shall be provided
reasonably promptly, but in no event later than December 31 of the year following the
year in which the expense was incurred, and in any event in accordance with Section
1.409A-3(i)(1)(iv) of the Regulations; and
	 
	 	(6)	 	the amount of any such payments or expense reimbursements in one calendar year
shall not affect the payments or expense reimbursements in any other calendar year,
other than an arrangement providing for the reimbursement of medical expenses referred
to in Section 105(b) of the Code, and the Employee’s right to such payments or
reimbursement of any such expenses shall not be subject to liquidation or exchange for
any other benefit.

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