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                                                                    EXHIBIT 10.1

                              CANADIAN SOLAR, INC.

                              SHARE INCENTIVE PLAN

                                   ARTICLE 1

                                    PURPOSE

      The purpose of the Canadian Solar, Inc. Share Incentive Plan (the "Plan")
is to promote the success and enhance the value of Canadian Solar, Inc., a
company formed under the laws of Canada (the "Company") by linking the personal
interests of the members of the Board, Employees, and Consultants to those of
Company shareholders and by providing such individuals with an incentive for
outstanding performance to generate superior returns to Company shareholders.
The Plan is further intended to provide flexibility to the Company in its
ability to motivate, attract, and retain the services of members of the Board,
Employees, and Consultants upon whose judgment, interest, and special effort the
successful conduct of the Company's operation is largely dependent.

                                   ARTICLE 2

                          DEFINITIONS AND CONSTRUCTION

      Wherever the following terms are used in the Plan they shall have the
meanings specified below, unless the context clearly indicates otherwise. The
singular pronoun shall include the plural where the context so indicates.

      2.1 "Applicable Laws" means the legal requirements relating to the Plan
and the Awards under applicable provisions of the corporate, securities, tax and
other laws, rules, regulations and government orders, and the rules of any
applicable Share exchange or national market system, of any jurisdiction
applicable to Awards granted to residents therein.

      2.2 "Award" means an Option, or Restricted Share award granted to a
Participant pursuant to the Plan.

      2.3 "Award Agreement" means any written agreement, contract, or other
instrument or document evidencing an Award, including through electronic medium.

      2.4 "Board" means the Board of Directors of the Company.

      2.5 "Change in Control" means a change in ownership or control of the
Company after the Registration Date effected through either of the following
transactions:

            (a) 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 of 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

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exchange offer made directly to the Company's shareholders which a majority of
the Incumbent Board (as defined below) who are not affiliates or associates of
the offeror under Rule 12b-2 promulgated under the Exchange Act do not recommend
such shareholders accept, or

            (b) 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 the Company's 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.

      2.6 "Code" means the Internal Revenue Code of 1986 of the United States,
as amended.

      2.7 "Committee" means the committee of the Board described in Article 10.

      2.8 "Consultant" means any consultant or adviser if: (a) the consultant or
adviser renders bona fide services to a Service Recipient; (b) the services
rendered by the consultant or adviser are not in connection with the offer or
sale of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for the Company's securities; and (c)
the consultant or adviser is a natural person who has contracted directly with
the Service Recipient to render such services.

      2.9 "Corporate Transaction" means any of the following transactions,
provided, however, that the Committee shall determine under (d) and (e) whether
multiple transactions are related, and its determination shall be final, binding
and conclusive:

            (a) an amalgamation, arrangement or consolidation 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;

            (b) the sale, transfer or other disposition of all or substantially
all of the assets of the Company;

            (c) the complete liquidation or dissolution of the Company;

            (d) any reverse takeover or series of related transactions
culminating in a reverse takeover (including, but not limited to, a tender offer
followed by a reverse takeover) in which the Company is the surviving entity but
(A) the Common Shares outstanding immediately prior to such takeover are
converted or exchanged by virtue of the takeover into other property, whether in
the form of securities, cash or otherwise, or (B) in which 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 persons
different from those who held such securities immediately prior to such takeover
or the initial transaction culminating in such takeover, but excluding any such
transaction or series of related transactions that the Committee determines
shall not be a Corporate Transaction; or

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            (e) 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 of 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.

      2.10 "Disability" means that the Participant qualifies to receive
long-term disability payments under the Service Recipient's long-term disability
insurance program, as it may be amended from time to time, to which the
Participant provides services regardless of whether the Participant is covered
by such policy. If the Service Recipient to which the Participant provides
service does not have a long-term disability plan in place, "Disability" means
that a Participant is unable to carry out the responsibilities and functions of
the position held by the Participant by reason of any medically determinable
physical or mental impairment for a period of not less than ninety (90)
consecutive days. A Participant will not be considered to have incurred a
Disability unless he or she furnishes proof of such impairment sufficient to
satisfy the Committee in its discretion.

      2.11 "Effective Date" shall have the meaning set forth in Section 10.1.

      2.12 "Employee" means any person, including an officer or member of the
Board of the Company, any Parent or Subsidiary of the Company, who is in the
employ of a Service Recipient, subject to the control and direction of the
Service Recipient as to both the work to be performed and the manner and method
of performance. The payment of a director's fee by a Service Recipient shall not
be sufficient to constitute "employment" by the Service Recipient.

      2.13 "Exchange Act" means the Securities Exchange Act of 1934 of the
United States, as amended.

      2.14 "Fair Market Value" means, as of any date, the value of Shares
determined as follows:

            (a) If the Shares are listed on one or more established Share
exchanges or national market systems, including without limitation, The Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Share Market, its
Fair Market Value shall be the closing sales price for such shares (or the
closing bid, 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 was reported
on that date, as applicable, 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 regularly quoted on an automated quotation
system (including the OTC Bulletin Board) or by a recognized securities dealer,
its Fair Market Value shall be the closing sales price for such shares as quoted
on such system or by such securities dealer on the date of determination, but if
selling prices are not reported, the Fair Market Value of a Common Share shall
be the mean between the high bid and low asked prices for the Common Shares on
the date of determination (or, if no such prices were reported on that date, on

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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 an established market for the Shares of the
type described in (i) and (ii), above, the Fair Market Value thereof shall be
determined by the Committee in good faith by reference to the placing price of
the latest private placement of the Shares and the development of the Company's
business operations and the general economic and market conditions since such
latest private placement.

      2.15 "Incentive Share Option" means an Option that is intended to meet the
requirements of Section 422 of the Code or any successor provision thereto.

      2.16 "Independent Director" means a member of the Board who is not an
Employee of the Company.

      2.17 "Non-Employee Director" means a member of the Board who qualifies as
a "Non-Employee Director" as defined in Rule 16b-3(b)(3) of the Exchange Act, or
any successor definition adopted by the Board.

      2.18 "Non-Qualified Share Option" means an Option that is not intended to
be an Incentive Share Option.

      2.19 "Option" means a right granted to a Participant pursuant to Article 5
of the Plan to purchase a specified number of Shares at a specified price during
specified time periods. An Option may be either an Incentive Share Option or a
Non-Qualified Share Option.

      2.20 "Participant" means a person who, as a member of the Board,
Consultant or Employee, has been granted an Award pursuant to the Plan.

      2.21 "Parent" means a parent corporation under Section 424(e) of the Code.

      2.22 "Plan" means this Canadian Solar, Inc. Share Incentive Award Plan, as
it may be amended from time to time.

      2.23 "Related Entity" means any business, corporation, partnership,
limited liability company or other entity in which the Company, a Parent or
Subsidiary of the Company holds a substantial ownership interest, directly or
indirectly but which is not a Subsidiary and which the Board designates as a
Related Entity for purposes of the Plan.

      2.24 "Restricted Share" means a Share awarded to a Participant pursuant to
Article 6 that is subject to certain restrictions and may be subject to risk of
forfeiture.

      2.25 "Securities Act" means the Securities Act of 1933 of the United
States, as amended.

      2.26 "Service Recipient" means the Company, any Parent or Subsidiary of
the Company and any Related Entity to which a Participant provides services as
an Employee, Consultant or as a Director.

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      2.27 "Share" means Common Shares of the Company, and such other securities
of the Company that may be substituted for Shares pursuant to Article 9.

      2.28 "Subsidiary" means any corporation or other entity of which a
majority of the outstanding voting shares or voting power is beneficially owned
directly or indirectly by the Company.

      2.29 "Trading Date" means the closing of the first sale to the general
public of the Shares pursuant to a registration statement filed with and
declared effective by the U.S. Securities and Exchange Commission under the
Securities Act.

                                   ARTICLE 3

                           SHARES SUBJECT TO THE PLAN

      3.1 Number of Shares.

            (a) Subject to the provisions of Article 10 and Section 3.1(b), the
maximum aggregate number of Shares which may be issued pursuant to all Awards
(including Incentive Share Options) is 1,000,000, 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 (x) one
percent (1%) of the number of Shares outstanding as of such date, or (y) a
lesser number of Shares determined by the Committee.

            (b) To the extent that an Award terminates, expires, or lapses for
any reason, any Shares subject to the Award shall again be available for the
grant of an Award pursuant to the Plan. To the extent permitted by Applicable
Law, Shares issued in assumption of, or in substitution for, any outstanding
awards of any entity acquired in any form or combination by the Company or any
Parent or Subsidiary of the Company shall not be counted against Shares
available for grant pursuant to the Plan. Shares delivered by the Participant or
withheld by the Company upon the exercise of any Award under the Plan, in
payment of the exercise price thereof or tax withholding thereon, may again be
optioned, granted or warded hereunder, subject to the limitations of Section
3.1(a), If any Restricted Shares are forfeited by the Participant or repurchased
by the Company, such Shares may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 3.1(a). Notwithstanding the provisions of
this Section 3.1(b), no Shares may again be optioned, granted or awarded if such
action would cause an Incentive Share Option to fail to qualify as an incentive
Share option under Section 422 of the Code.

      3.2 Shares Distributed. Any Shares distributed pursuant to an Award may
consist, in whole or in part, of authorized and unissued Shares, treasury or
Shares purchased on the open market. Additionally, in the discretion of the
Committee, American Depository Shares in an amount equal to the number of Shares
which otherwise would be distributed pursuant to an Award may be distributed in
lieu of Shares in settlement of any Award. 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

                          ELIGIBILITY AND PARTICIPATION

      4.1 Eligibility. Persons eligible to participate in this Plan include
Employees, Consultants, and all members of the Board, as determined by the
Committee.

      4.2 Participation. Subject to the provisions of the Plan, the Committee
may, from time to time, select from among all eligible individuals, those to
whom Awards shall be granted and shall determine the nature and amount of each
Award. No individual shall have any right to be granted an Award pursuant to
this Plan.

      4.3 Jurisdictions. In order to assure the viability of Awards granted to
Participants employed in various jurisdictions, the Committee may provide for
such special terms as it may consider necessary or appropriate to accommodate
differences in local law, tax policy, or custom applicable in the jurisdiction
in which the Participant resides or is employed. Moreover, the Committee may
approve such supplements to, or amendments, restatements, or alternative
versions of, the Plan as it may consider necessary or appropriate for such
purposes without thereby affecting the terms of the Plan as in effect for any
other purpose; provided, however, that no such supplements, amendments,
restatements, or alternative versions shall increase the share limitations
contained in Section 3.1 of the Plan. Notwithstanding the foregoing, the
Committee may not take any actions hereunder, and no Awards shall be granted,
that would violate any Applicable Laws.

                                   ARTICLE 5

                                    OPTIONS

      5.1 General. The Committee is authorized to grant Options to Participants
on the following terms and conditions:

            (a) Exercise Price. The exercise price per Share subject to an
Option shall be determined by the Committee and set forth in the Award Agreement
which may be a fixed or variable price related to the Fair Market Value of the
Shares; provided, however, 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.

            (b) Time and Conditions of Exercise. The Committee shall determine
the time or times at which an Option may be exercised in whole or in part,
including exercise prior to vesting; provided that the term of any Option
granted under the Plan shall not exceed ten years, except as provided in Section
9.2. The Committee shall also determine any conditions, if any, that must be
satisfied before all or part of an Option may be exercised.

            (c) Payment. The Committee shall determine the methods by which the
exercise price of an Option may be paid, the form of payment, including, without
limitation (i) cash or check denominated in U.S. or Canadian Dollars, (ii) cash
or check in Chinese Renminbi, (iii) cash or check denominated in any other local
currency as approved by the Committee, (iv) Shares held for such period of time
as may be required by the Committee in order to avoid

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adverse financial accounting consequences and having a Fair Market Value on the
date of delivery equal to the aggregate exercise price of the Option or
exercised portion thereof, (v) after the Trading Date the delivery of a notice
that the Participant has placed a market sell order with a broker with respect
to Shares then issuable upon exercise of the Option, 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 Option exercise price; provided that payment of
such proceeds is then made to the Company upon settlement of such sale), and the
methods by which Shares shall be delivered or deemed to be delivered to
Participants (vi) other property acceptable to the Committee with a Fair Market
Value equal to the exercise price, or (vii) any combination of the foregoing.
Notwithstanding any other provision of the Plan to the contrary, no Participant
who is a member of the Board or an "executive officer" of the Company within the
meaning of Section 13(k) of the Exchange Act shall be permitted to pay the
exercise price of an Option in any method which would violate Section 13(k) of
the Exchange Act.

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

      5.2 Incentive Share Options. Incentive Share Options shall be granted only
to Employees of the Company, a Parent or Subsidiary of the Company. Incentive
Share Options may not be granted to Employees of a Related Entity. The terms of
any Incentive Share Options granted pursuant to the Plan, in addition to the
requirements of Section 5.1, must comply with the following additional
provisions of this Section 5.2:

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

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

                  (ii) Three months after the Participant's termination of
employment as an Employee; and

                  (iii) One year after the date of the Participant's termination
of employment or service on account of Disability or death. Upon the
Participant's Disability or death, any Incentive Share Options exercisable at
the Participant's Disability or death may be exercised by the Participant's
legal representative or representatives, by the person or persons entitled to do
so pursuant to the Participant's last will and testament, or, if the Participant
fails to make testamentary disposition of such Incentive Share Option or dies
intestate, by the person or persons entitled to receive the Incentive Share
Option pursuant to the applicable laws of descent and distribution.

            (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 Share Options are first exercisable by a Participant in any
calendar year may not exceed $100,000 or such other limitation as imposed by
Section 422(d) of the Code, or any successor provision. To the extent that
Incentive Share Options are first exercisable by a Participant in

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excess of such limitation, the excess shall be considered Non-Qualified Share
Options.

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

            (d) Transfer Restriction. The Participant shall give the Company
prompt notice of any disposition of Shares acquired by exercise of an Incentive
Share Option within (i) two years from the date of grant of such Incentive Share
Option or (ii) one year after the transfer of such Shares to the Participant.

            (e) Expiration of Incentive Share Options. No Award of an Incentive
Share Option may be made pursuant to this Plan after the tenth anniversary of
the Effective Date.

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

                                   ARTICLE 6

                                RESTRICTED SHARES

      6.1 Grant of Restricted Shares. The Committee is authorized to make Awards
of Restricted Shares to any Participant selected by the Committee in such
amounts and subject to such terms and conditions as determined by the Committee.
All Awards of Restricted Shares shall be evidenced by an Award Agreement.

      6.2 Issuance and Restrictions. Restricted Shares shall be subject to such
restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote
Restricted Shares or the right to receive dividends on the Restricted Share).
These restrictions may lapse separately or in combination at such times,
pursuant to such circumstances, in such installments, or otherwise, as the
Committee determines at the time of the grant of the Award or thereafter.

      6.3 Forfeiture. Except as otherwise determined by the Committee at the
time of the grant of the Award or thereafter, upon termination of employment or
service during the applicable restriction period, Restricted Shares that are at
that time subject to restrictions shall be forfeited; provided, however, the
Committee may (a) provide in any Restricted Share Award Agreement that
restrictions or forfeiture conditions relating to Restricted Shares will be
waived in whole or in part in the event of terminations resulting from specified
causes, and (b) in other cases waive in whole or in part restrictions or
forfeiture conditions relating to Restricted Shares.

      6.4 Certificates for Restricted Shares. Restricted Shares granted pursuant
to the Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing Restricted Shares are registered in the name of the
Participant, certificates must bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such

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Restricted Shares, and the Company may, at its discretion, retain physical
possession of the certificate until such time as all applicable restrictions
lapse.

                                   ARTICLE 7

                         PROVISIONS APPLICABLE TO AWARDS

      7.1 Award Agreement. Awards under the Plan shall be evidenced by Award
Agreements that set forth the terms, conditions and limitations for each Award
which may include the term of an Award, the provisions applicable in the event
the Participant's employment or service terminates, and the Company's authority
to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an
Award.

      7.2 Limits on Transfer. No right or interest of a Participant in any Award
may be pledged, encumbered, or hypothecated to or in favor of any party other
than the Company or a Subsidiary, or shall be subject to any lien, obligation,
or liability of such Participant to any other party other than the Company or a
Subsidiary. Except as otherwise provided by the Committee, no Award shall be
assigned, transferred, or otherwise disposed of by a Participant other than by
will or the laws of descent and distribution. The Committee by express provision
in the Award or an amendment thereto may permit an Award (other than an
Incentive Share Option) to be transferred to, exercised by and paid to certain
persons or entities related to the Participant, including but not limited to
members of the Participant's family, charitable institutions, or trusts or other
entities whose beneficiaries or beneficial owners are members of the
Participant'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. Any permitted transfer
shall be subject to the condition that the Committee receive evidence
satisfactory to it that the transfer is being made for estate and/or tax
planning purposes (or to a "blind trust" in connection with the Participant's
termination of employment or service with the Company or a Subsidiary to assume
a position with a governmental, charitable, educational or similar non-profit
institution) and on a basis consistent with the Company's lawful issue of
securities.

      7.3 Beneficiaries. Notwithstanding Section 7.2, a Participant may, in the
manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any
Award upon the Participant'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 Participant, 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 Participant is married and resides in a
community property state, a designation of a person other than the Participant's
spouse as his or her beneficiary with respect to more than 50% of the
Participant's interest in the Award shall not be effective without the prior
written consent of the Participant's spouse. If no beneficiary has been
designated or survives the Participant, payment shall be made to the person
entitled thereto pursuant to the Participant's will or the laws of descent and
distribution. Subject to the foregoing, a beneficiary designation may be changed
or revoked by a Participant at any time provided the change or revocation is
filed with the Committee.

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      7.4 Share Certificates. Notwithstanding anything herein to the contrary,
the Company shall not be required to issue or deliver any certificates
evidencing shares of Share pursuant to the exercise of any Award, unless and
until the Board has determined, with advice of counsel, that the issuance and
delivery of such certificates is in compliance with all Applicable Laws,
regulations of governmental authorities and, if applicable, the requirements of
any exchange on which the Shares are listed or traded. All Share certificates
delivered pursuant to the Plan are subject to any stop-transfer orders and other
restrictions as the Committee deems necessary or advisable to comply with
federal, state, or foreign jurisdiction, securities or other laws, rules and
regulations and the rules of any national securities exchange or automated
quotation system on which the Shares are listed, quoted, or traded. The
Committee may place legends on any Share certificate to reference restrictions
applicable to the Share. In addition to the terms and conditions provided
herein, the Board may require that a Participant make such reasonable covenants,
agreements, and representations as the Board, in its discretion, deems advisable
in order to comply with any such laws, regulations, or requirements. The
Committee shall have the right to require any Participant to comply with any
timing or other restrictions with respect to the settlement or exercise of any
Award, including a window-period limitation, as may be imposed in the discretion
of the Committee.

      7.5 Paperless Administration. Subject to Applicable Laws, the Committee
may make Awards, provide applicable disclosure and procedures for exercise of
Awards by an internet website or interactive voice response system for the
paperless administration of Awards.

      7.6 Foreign Currency. A Participant may be required to provide evidence
that any currency used to pay the exercise price of any Award were acquired and
taken out of the jurisdiction in which the Participant resides in accordance
with Applicable Laws, including foreign exchange control laws and regulations.
In the event the exercise price for an Award is paid in Chinese Renminbi,
Canadian dollars or other foreign currency, as permitted by the Committee, the
amount payable will be determined by conversion from U.S. dollars at the
official rate promulgated by the People's Bank of China for Chinese Renminbi, or
for jurisdictions other than the PRC, the exchange rate as selected by the
Committee on the date of exercise.

                                   ARTICLE 8

                          CHANGES IN CAPITAL STRUCTURE

      8.1 Adjustments. In the event of any dividend, share split, combination or
exchange of Shares, amalgamation, arrangement or consolidation, spin-off,
recapitalization or other distribution (other than normal cash dividends) of
Company assets to its shareholders, or any other change affecting the shares of
Shares or the share price of a Share, the Committee shall make such
proportionate adjustments, if any, as the Committee in its discretion may deem
appropriate 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); (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.

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      8.2 Acceleration upon a Change of Control. Except as may otherwise be
provided in any Award Agreement or any other written agreement entered into by
and between the Company and a Participant, if a Change of Control occurs and a
Participant's Awards are not converted, assumed, or replaced by a successor,
such Awards shall become fully exercisable and all forfeiture restrictions on
such Awards shall lapse. Upon, or in anticipation of, a Change of Control, the
Committee may in its sole discretion provide for (i) any and all Awards
outstanding hereunder to terminate at a specific time in the future and shall
give each Participant the right to exercise such Awards during a period of time
as the Committee shall determine, (ii) 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 Participant'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
Participant' s rights, then such Award may be terminated by the Company without
payment), (iii) the replacement of such Award with other rights or property
selected by the Committee in its sole discretion 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, or (iv) provide for payment of Awards in cash based
on the value of Shares on the date of the Change of Control plus reasonable
interest on the Award through the date such Award would otherwise be vested or
have been paid in accordance with its original terms, if necessary to comply
with Section 409A of the Code.

      8.3 Outstanding Awards - Corporate Transactions. In the event of a
Corporate Transaction, each Award will terminate upon the consummation of the
Corporate Transaction, unless the Award is assumed by the successor entity or
Parent thereof in connection with the Corporate Transaction. . Except as
provided otherwise in an individual Award Agreement, in the event of a Corporate
Transaction and:

            (a) the Award either is (x) assumed by the successor entity or
Parent thereof or replaced with a comparable Award (as determined by the
Committee) with respect to shares of the capital stock of the successor entity
or Parent thereof or (y) 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, then such
Award (if assumed), the replacement Award (if replaced), 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 Participant's employment or service with all Service
Recipient within twelve (12) months of the Corporate Transaction without cause;
and

            (b) For each Award that is neither assumed nor replaced, such
portion of the Award shall automatically become fully vested and exercisable and
be released from any repurchase or forfeiture rights (other than repurchase
rights exercisable at Fair Market Value) for all of the Shares at the time
represented by such portion of the Award, immediately prior to the specified
effective date of such Corporate Transaction, provided that the Participant
remains an Employee, Consultant or Director on the effective date of the
Corporate Transaction.

                                       11
<PAGE>

      8.4 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 10, 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.

      8.5 No Other Rights. Except as expressly provided in the Plan, no
Participant 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.

                                   ARTICLE 9

                                 ADMINISTRATION

      9.1 Committee. The Plan shall be administered by the Compensation
Committee of the Board; provided, however that the Compensation Committee may
delegate to a committee of one or more members of the Board the authority to
grant or amend Awards to Participants other than (a) senior executives of the
Company who are subject to Section 16 of the Exchange Act or (b) Covered
Employees. The Committee shall consist of at least two individuals, each of whom
qualifies as a Non-Employee Director. Reference to the Committee shall refer to
the Board if the Compensation Committee ceases to exist and the Board does not
appoint a successor Committee. Notwithstanding the foregoing, the full Board,
acting by majority of its members in office shall conduct the general
administration of the Plan if required by Applicable Law, and with respect to
Awards granted to Independent Directors and for purposes of such Awards the term
"Committee" as used in the Plan shall be deemed to refer to the Board.

      9.2 Action by the Committee. A majority of the Committee shall constitute
a quorum. The acts of a majority of the members present at any meeting at which
a quorum is present, and acts approved in writing by a majority of the Committee
in lieu of a meeting, shall be deemed the acts of 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
the Company or any Subsidiary, 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.

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

            (a) Designate Participants to receive Awards;

            (b) Determine the type or types of Awards to be granted to each
Participant;

                                       12
<PAGE>

            (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 restrictions or limitations on the Award, any schedule for
lapse of forfeiture restrictions or restrictions on the exercisability of an
Award, and accelerations or waivers thereof, 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 Participant;

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

            (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.

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

                                   ARTICLE 10

                          EFFECTIVE AND EXPIRATION DATE

      10.1 Effective Date. The Plan is effective as of the date the Plan is
approved by the Company's shareholders (the "Effective Date"). The Plan will be
deemed to be approved by the shareholders if it receives the affirmative vote of
the holders of a majority of the share capital of the Company present or
represented and entitled to vote at a meeting duly held in accordance with the
applicable provisions of the Company's Memorandum of Association and Articles of
Association.

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

                                       13
<PAGE>

                                   ARTICLE 11

                    AMENDMENT, MODIFICATION, AND TERMINATION

      11.1 Amendment, Modification, And Termination. With the approval of the
Board, at any time and from time to time, the Committee may terminate, amend or
modify the Plan; provided, however, that (a) to the extent necessary and
desirable to comply with any applicable law, regulation, or stock exchange rule,
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 (i) increases the number of Shares
available under the Plan (other than any adjustment as provided by Article 8),
(ii) permits the Committee to grant Options with an exercise price that is below
Fair Market Value on the date of grant, (iii) permits the Committee to extend
the exercise period for an Option beyond ten years from the date of grant, or
(iv) results in a material increase in benefits or a change in eligibility
requirements.

      11.2 Awards Previously Granted. Except with respect to amendments made
pursuant to Section 11.1, no termination, amendment, or modification of the Plan
shall adversely affect in any material way any Award previously granted pursuant
to the Plan without the prior written consent of the Participant.

                                   ARTICLE 12

                               GENERAL PROVISIONS

      12.1 No Rights to Awards. No Participant, employee, 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 Participants, employees, and
other persons uniformly.

      12.2 No Shareholders Rights. No Award gives the Participant any of the
rights of a Shareholder of the Company unless and until Shares are in fact
issued to such person in connection with such Award.

      12.3 Taxes. No Shares shall be delivered under the Plan to any Participant
until such Participant has made arrangements acceptable to the Committee for the
satisfaction of any income and employment tax withholding obligations under
Applicable Laws. The Company or any Subsidiary shall have the authority and the
right to deduct or withhold, or require a Participant to remit to the Company,
an amount sufficient to satisfy federal, state, local and foreign taxes
(including the Participant's payroll tax obligations) required by law to be
withheld with respect to any taxable event concerning a Participant arising as a
result of this Plan. The Committee may in its discretion and in satisfaction of
the foregoing requirement allow a Participant to elect to have the Company
withhold Shares otherwise issuable under an Award (or allow the return of
Shares) having a Fair Market Value equal to the sums required to be withheld.
Notwithstanding any other provision of the Plan, the number of Shares which may
be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased from the Participant of such Award after such
Shares were acquired by the Participant from the Company) in order to satisfy
the Participant's federal, state, local and foreign income and payroll tax
liabilities with respect to the issuance, vesting, exercise or payment of the
Award shall, unless specifically approved by the Committee, be limited to the

                                       14
<PAGE>

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 federal, state, local and foreign income
tax and payroll tax purposes that are applicable to such supplemental taxable
income.

      12.4 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 Participant's employment or services at any time, nor
confer upon any Participant any right to continue in the employ or service of
any Service Recipient.

      12.5 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
Participant pursuant to an Award, nothing contained in the Plan or any Award
Agreement shall give the Participant any rights that are greater than those of a
general creditor of the Company or any Subsidiary.

      12.6 Indemnification. To the extent allowable pursuant to applicable law,
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 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 Memorandum of Association and Articles
of Association,, as a matter of law, or otherwise, or any power that the Company
may have to indemnify them or hold them harmless.

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

      12.8 Expenses. The expenses of administering the Plan shall be borne by
the Company and its Subsidiaries.

      12.9 Titles and Headings. 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.

      12.10 Fractional Shares. No fractional shares of Share shall be issued and
the Committee shall determine, in its discretion, whether cash shall be given in
lieu of fractional shares or whether such fractional shares shall be eliminated
by rounding up or down as appropriate.

      12.11 Limitations Applicable to Section 16 Persons. Notwithstanding any
other

                                       15
<PAGE>

provision of the Plan, the Plan, and any Award granted or awarded to any
Participant who is then subject to Section 16 of the Exchange Act, shall be
subject to any additional limitations set forth in any applicable exemptive rule
under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of
the Exchange Act) that are requirements for the application of such exemptive
rule. 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 applicable exemptive rule.

      12.12 Government and Other Regulations. The obligation of the Company to
make payment of awards in Share or otherwise shall be subject to all Applicable
Laws, rules, and regulations, and to such approvals by government agencies as
may be required. The Company shall be under no obligation to register any of the
Shares paid pursuant to the Plan under the Securities Act or any other similar
law in any applicable jurisdiction. If the Shares paid pursuant to the Plan may
in certain circumstances be exempt from registration pursuant to the Securities
Actor other Applicable Laws the Company may restrict the transfer of such shares
in such manner as it deems advisable to ensure the availability of any such
exemption.

      12.13 Governing Law. The Plan and all Award Agreements shall be construed
in accordance with and governed by the laws of Canada.

      12.14 Section 409A. To the extent that the Committee determines that any
Award granted under the Plan is or may become 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 the Award Agreements shall be interpreted in accordance with Section
409A of the Code and the U.S. Department of Treasury regulations and other
interpretative guidance issued thereunder, including without limitation any such
regulation r 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 is 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 U.S. Department of
Treasury guidance.

      12.15 Appendices. The Committee may approve such supplements, amendments
or appendices to the Plan as it may consider necessary or appropriate for
purposes of compliance with applicable laws or otherwise and such supplements,
amendments or appendices shall be considered a part of the Plan; provided,
however, that no such supplements shall increase the share limitations contained
in Sections 3.1 and 3.3 of the Plan.

                                       16
<PAGE>

                                    * * * * *

     I hereby certify that the foregoing Plan was duly adopted by the Board
of Directors of Canadian Solar, Inc. on March 15, 2006.

                                    * * * * *

     I hereby certify that the foregoing Plan was approved by the
shareholders of Canadian Solar, Inc. on March 15, 2006.

                    Executed on this 15th day of March, 2006.

                                                   /s/
                                              __________________________________
                                                        President & CEO

                                       17
<PAGE>

                               CANADIAN SOLAR INC.

                        RESTRICTED SHARES AWARD AGREEMENT

NAME: __________________________  SHARE INCENTIVE PLAN
ADDRESS:

                                  GRANT:  ______ COMMON SHARES (THE "RESTRICTED
                                         SHARES") OF CANADIAN SOLAR, INC.
                                        (THE "COMPANY")

                                  GRANT PRICE: US$0.00 PER SHARE

SIGNATURE:_______________________ GRANT DATE: ________________, 200__

                                  VESTING COMMENCEMENT DATE: ___________, 200__

Effective on the Grant Date you have been granted the Restricted Shares of the
Company, in accordance with the provisions of the Canadian Solar Inc. Share
Incentive Plan (the "Plan") and subject to the restrictions, terms and
conditions set forth herein.

The Restricted Shares will vest in accordance with the following schedule:

      50% of the Restricted Shares will be vested one year after the Grant Date,
      and another 50% of the Restricted Shares will be vested two years after
      the Grant Date.

Once vested, the Restricted Shares will no longer be subject to forfeiture and
the restrictions contained in this Agreement.

In the event of the termination of your employment or service for any reason,
whether such termination is occasioned by you, by the Company or any of its
Subsidiaries, with or without cause or by mutual agreement ("Termination of
Service"), prior to vesting in the Restricted Shares, your right to any unvested
Restricted Shares will terminate effective as of the earlier of: (i) the date
that you give or are provided with written notice of Termination of Service, or
(ii) if you are an employee of the Company or any of its Subsidiaries, the date
that you are no longer actively employed and physically present on the premises
of the Company or any of its Subsidiaries, regardless of any notice period or
period of pay in lieu of such notice required under any applicable statute or
the common law (each, the "Notice Period"). For greater clarity, you have no
rights to vest in Restricted Shares during the Notice Period.

Notwithstanding the foregoing, the Restricted Shares will fully vest and no
longer be subject to forfeiture and the restrictions contained in this Agreement
if your Termination of Service is as a result of death or disability.

Until vested, the Restricted Shares are not transferable and may not be sold,
pledged or otherwise transferred.

The Company may but is not obligated to cause to be issued one or more share
certificates, registered in your name, evidencing the Restricted Shares or may
hold the Restricted Shares in book form. If the Company issues certificate(s)
evidencing the Restricted Shares each such certificate will bear the following
legend:

<PAGE>

      The shares represented by this certificate are subject to forfeiture and
      the transferability of this certificate and the shares represented hereby
      are subject to the restrictions, terms and conditions (including
      restrictions against transfer) contained in the Canadian Solar Inc. Share
      Incentive Plan and a Restricted Shares Award Agreement dated thereof,
      entered into between the registered owner of such shares and Canadian
      Solar Inc..

Each such certificate, together with powers duly executed in blank related to
such Restricted Shares, will be deposited with the Secretary of the Company or a
custodian designated by the Secretary. The Secretary or custodian will issue a
receipt to you evidencing the certificates held that are registered in your
name. Following the vesting of any of your Restricted Shares, the Company will
cause to be issued and delivered to you certificates evidencing such Restricted
Shares, free of the legend provided above.

You will not be entitled to receive dividends paid on the common shares of the
Company, if any, until the Restricted Shares are vested. You will not be
entitled to vote the Restricted Shares until such Restricted Shares are vested.
Only the vested portion of the Restricted Shares shall entitle the holder
thereof to receive dividends, if any, and voting right.

The Company has the authority to deduct or withhold, or require you to remit to
the Company, an amount sufficient to satisfy applicable federal, state, local
and foreign taxes arising from this Restricted Shares Award. You may satisfy
your tax obligation, in whole or in part, by: (i) electing to have the Company
withhold shares of your Restricted Shares otherwise to be delivered with a fair
market value equal to the minimum amount of the tax withholding obligation; (ii)
surrendering to the Company previously owned Restricted Shares with a fair
market value equal to the minimum amount of the tax withholding obligation; or
(iii) paying over to the Company in cash the amount of tax withholding
obligation.

You acknowledge and consent to the collection, use, processing and transfer of
personal data as described in this paragraph. The Company, its affiliates and
your employer hold certain personal information, including your name, home
address and telephone number, date of birth, identification number, salary,
nationality, job title, any shares awarded, cancelled, purchased, vested,
unvested or outstanding in your favor, for the purpose of managing and
administering the Plan ("Data"). The Company and its affiliates will transfer
Data to any third parties assisting the Company in the implementation,
administration and management of the Plan. These recipients may be located in
the PRC or elsewhere such as the European Economic Area or the United States.
You authorize them to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and
managing your participation in the Plan, including any requisite transfer of
such Data as may be required for the administration of the Plan and/or the
subsequent holding of shares on your behalf to a broker or other third party
with whom you may elect to deposit any shares acquired pursuant to the Plan. You
may, at any time, review Data, require any necessary amendments to it or
withdraw the consent herein in writing by contacting the Company; however,
withdrawing the consent may affect your ability to participate in the Plan.

Your participation in the Plan is voluntary. The value of the Restricted Shares
Award is an extraordinary item of compensation outside the scope of your
employment contract, if any. As such, the Restricted Shares Award is not part of
normal or expected compensation for purposes of calculating any severance,
resignation, redundancy, end of service payments, bonuses, long-service awards,
pensions or retirement

<PAGE>

benefits or similar payments unless specifically and otherwise provided. Rather,
the awarding of Restricted Shares under the Plan represents a mere investment
opportunity.

This Restricted Shares Award is granted under and governed by the terms and
conditions of the Plan. You acknowledge and agree that the Plan is discretionary
in nature and may be amended, cancelled, or terminated by the Company, in its
sole discretion, at any time. The grant of a Restricted Shares Award under the
Plan is a one-time benefit and does not create any contractual or other right to
receive an award of Restricted Shares or benefits in lieu of Restricted Shares
in the future. Future awards of Restricted Shares, if any, will be at the sole
discretion of the Company, including, but not limited to, the timing of the
award, the number of shares, and vesting provisions. The Plan has been
introduced voluntarily by the Company and in accordance with the provisions of
the Plan may be terminated by the Company at any time. By execution of this
Agreement, you consent to the provisions of the Plan and this Agreement. Defined
terms used herein shall have the meaning set forth in the Plan, unless otherwise
defined herein.

COMPANY:

Canadian Solar Inc.

______________________________________________
Name:
Title:

ACKNOWLEDGED AND AGREED BY:

______________________________________________
Name:

<PAGE>

                              CANADIAN SOLAR, INC.
                             SHARE OPTION AGREEMENT

NAME:                                 PLAN: SHARE INCENTIVE PLAN

ADDRESS:                              GRANT: OPTION TO PURCHASE __________SHARES
                                             OF THE ORDINARY SHARE CAPITAL OF
                                             CANADIAN SOLAR, INC.

                                      EXERCISE PRICE: $

SIGNATURE:                            GRANT DATE:

Effective on the Grant Date you have been granted an the option to purchase the
number of Shares of the Company at the exercise price designated above, in
accordance with the provisions of the Canadian Solar, Inc. Share Incentive Plan
(the "Plan"). This option may be exercised for whole shares only.

Twenty-five percent (25%) of the Shares subject to the option will vest and
become exercisable on each anniversary of the Grant Date

In the event of the termination of your employment or service for the Company,
for any reason, whether such termination is occasioned by you, by the Company or
any of its Subsidiaries or Related Entities, or with or without cause or by
mutual agreement or if you cease to be employed by a Related Entity either
through sale or otherwise ("Termination of Service"), your right to vest in your
option under the Plan, if any, will terminate effective as of the earlier of:
(i) the date that you give or are provided with written notice of Termination of
Service, or (ii) if you are an employee of the Company or any of its
Subsidiaries, the date that you are no longer actively employed and physically
present on the premises of the Company or any of its Subsidiaries, regardless of
any notice period or period of pay in lieu of such notice required under any
applicable statute or the common law (each, the "Notice Period"). For greater
clarity, you have no rights to vest in your option during the Notice Period.

Notwithstanding the foregoing, if your Termination of Service is by reason of
cause, then your right to exercise the option shall terminate concurrently with
your Termination of Service. For this purpose cause shall have the meaning as
expressly defined in any then-effective written agreement regarding your
employment with the Company, any Subsidiary or Related Entity, or in the absence
of such then-effective written agreement and definition, is based on, in the
determination of the Committee that you have: (i) performed an act or failure to
perform any act in bad faith and to the detriment of the Company, a Subsidiary
or any Related Entity; (ii) engaged in dishonesty, intentional misconduct or
material breach of any agreement with the Company, a Subsidiary or a Related
Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or
physical or emotional harm to any person.

The option may not be exercised until vested. Once vested, the option may be
exercised in whole or any part, at any time. However, a vested option must be
exercised, if at all, prior to the earlier of:

      (a)   one year following your Termination of Service with the Company, its
            Subsidiaries and Related Entities by reason of death, or Disability;

<PAGE>

      (b)   90 days following your last day of active employment or service with
            or for the Company, its Subsidiary or Related Entities for any
            reason other than death or Disability; for this purpose your last
            day of active employment or service will be deemed to occur on the
            date of the closing of the sale of all or substantially all of the
            stock or assets of a Subsidiary or Related Entity for which you are
            employed at the time of the transaction;

      (c)   the tenth anniversary of the Grant Date;

and if not exercised prior thereto shall terminate and no longer be exercisable.

The option will be deemed exercised upon your completing the exercise procedures
established by the Company and your payment of the option exercise price per
share and any applicable tax withholding to the Company. Payment may be made in
cash or such other method as the Company may permit from time to time as set
forth in the Plan.

The Shares acquired upon exercise of the option may in the discretion of the
Company be subject to such restrictions as the Company may require such as
rights of first refusal, rights of repurchase or requirements that you consent
not to transfer the Shares for a period of time in connection with any public
offering of the Shares.

Notwithstanding anything in the Plan to the contrary and in accordance with
Section 4.3 of the Plan, if you are a resident for tax purposes in the Peoples
Republic of China ("PRC"), you may exercise your option only by placing a market
sell order with a broker with respect to Shares then issuable upon exercise of
the option as described in Section 5.1(c) of the Plan.

The Company has the authority to deduct or withhold, or require you to remit to
the Company, an amount sufficient to satisfy applicable federal, state, local
and foreign taxes arising from this option. You may satisfy your tax obligation,
in whole or in part, by either: (i) electing to have the Company withhold Shares
otherwise to be delivered with a fair market value equal to the minimum amount
of the tax withholding obligation; or (ii) surrendering to the Company
previously owned Shares with a fair market value equal to the minimum amount of
the tax withholding obligation.

This option is not transferable except by will or the laws of descent and
distribution.

You acknowledge and consent to the collection, use, processing and transfer of
personal data as described in this paragraph. The Company, its affiliates and
your employer hold certain personal information, including your name, home
address and telephone number, date of birth, social security number or other
employee tax identification number, salary, nationality, job title, any shares
of stock awarded, cancelled, purchased, vested, unvested or outstanding in your
favor, for the purpose of managing and administering the Plan ("Data"). The
Company and its affiliates will transfer Data to any third parties assisting the
Company in the implementation, administration and management of the Plan. These
recipients may be located in the European Economic Area, the PRC or elsewhere
such as the United States. You authorize them to receive, possess, use, retain
and transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing your participation in the Plan,
including any requisite transfer of such Data as may be required for the
administration of the Plan and/or the subsequent holding of shares of stock on
your behalf to a broker or other third party with whom you may elect to deposit
any shares of stock acquired pursuant to the Plan. You may, at any time, review
Data, require any necessary amendments to it or withdraw the consent herein in
writing by

<PAGE>

contacting the Company; however, withdrawing the consent may affect your ability
to participate in the Plan.

Your participation in the Plan is voluntary. The value of the option is an
extraordinary item of compensation outside the scope of your employment
contract, if any. As such, the option is not part of normal or expected
compensation for purposes of calculating any severance, resignation, redundancy,
end of service payments, bonuses, long-service awards, pensions or retirement
benefits or similar payments unless specifically and otherwise provided. Rather,
the awarding of an option under the Plan represents a mere investment
opportunity.

This option is granted under and governed by the terms and conditions of the
Plan. You acknowledge and agree that the Plan is discretionary in nature and may
be amended, cancelled, or terminated by the Company, in its sole discretion, at
any time. The grant of an option under the Plan is a one-time benefit and does
not create any contractual or other right to receive a grant of options or
benefits in lieu of options in the future. Future grants of options, if any,
will be at the sole discretion of the Company, including, but not limited to,
the timing of the grant, the number of options, vesting provisions, and the
exercise price. The Plan has been introduced voluntarily by the Company and in
accordance with the provisions of the Plan may be terminated by the Company at
any time. By execution of this Agreement, you consent to the provisions of the
Plan and this Agreement. Defined terms used herein shall have the meaning set
forth in the Plan, unless otherwise defined herein.

COMPANY:

CANADIAN SOLAR, INC.

_______________________________________
By:
Its:<PAGE>

                                                                    EXHIBIT 10.2

                             DATED 29 NOVEMBER 2005

                            (1) CANADIAN SOLAR INC.

                                and

                            (2) MR. QU XIAO HUA

             ------------------------------------------------------

                              EMPLOYMENT AGREEMENT

             ------------------------------------------------------

<PAGE>

THIS AGREEMENT is made the 29th day of November 2005.

BETWEEN:

(1)   CANADIAN SOLAR INC., a corporation incorporated under the laws of the
      Province of Ontario, Canada with its registered office at 4056 Jefton
      Crescent, Mississauga, Ontario, Canada L5L 1Z3 (the "COMPANY"); and

(2)   MR. QU XIAO HUA, holder of Canadian Passport Number BC289772 and whose
      residential address being at 4056 Jefton Crescent, Mississauga, Ontario,
      Canada L5L 1Z3 (the "EXECUTIVE");

WHEREAS the Company has employed the Executive and the Executive has been
employed by the Company since November 29th, 2005 as the President and Chief
Executive Officer and the parties now wish to record the terms of this
engagement.

WHEREBY IT IS AGREED as follows:-

1.    DEFINITIONS AND INTERPRETATION

1.1   In this Agreement, unless the context otherwise requires, the following
      words shall have the following meanings:

      "AFFILIATE" of the Executive means (a) any company or corporation that,
      directly or indirectly, through one or more intermediaries, is controlled
      by the Executive and/or any of his spouse, parents or descendants (whether
      by blood or adoption and including stepchildren); and (b) the Executive's
      spouse, parents and descendants (whether by blood or adoption and
      including stepchildren);

      "BOARD" means the board of directors from time to time of the Company or
      (as the context may require) the majority of directors present and voting
      at any meeting of the board of directors of the Company duly convened and
      held or a duly authorised committee thereof;

      "BUSINESS" means all the business and affairs carried out by the Group or
      any company in the Group from time to time;

      "BY-LAWS" means the by-laws of the Company as amended from time to time;

      "COMMENCEMENT DATE" means the date of commencement of the Employment being
      November 29th, 2005;

      "COMPENSATION COMMITTEE" means the compensation committee of the board of
      the Company;

      "CONFIDENTIAL INFORMATION" means all information, know-how and records (in
      whatever form held) in any way connected with the Business including
      (without

                                       1
<PAGE>

      prejudice to the generality of the foregoing) without limitation all
      formulae, designs, specifications, drawings, data, operations and testing
      procedures, manuals and instructions and all customer and supplier lists,
      sales information, business plans and forecasts and all technical or other
      expertise and all computer software and all accounting and tax records,
      correspondence, orders and enquiries that are confidential or not
      generally known;

      "EMPLOYMENT" means the employment of the Executive as President and Chief
      Executive Officer of the Company or such other position as may be
      designated by the Company;

      "GROUP" means the Company and any subsidiaries from time to time of the
      Company;

      "GROUP COMPANY" means any company in the Group;

      "HONG KONG" means the Hong Kong Special Administrative Region of the
      People's Republic of China;

      "INCAPACITY" means any illness (whether mental or physical), injury or
      accident; and

      "TRANSACTION DOCUMENTS" means (a) the subscription agreement dated 16
      November 2005 between, among others, the Company and the Executive; and
      (b) the investment agreement to be entered into on or about November 30th,
      2005 between, among others, the Company and the Executive.

1.2   References herein to Clauses are references to the clauses of this
      Agreement. The headings in this Agreement are inserted for convenience of
      reference only and do not affect the interpretation of this Agreement.

1.3   References herein to one gender include references to all other genders.
      References herein to persons include references to individuals, firms,
      companies, corporations and unincorporated bodies of persons and vice
      versa. References herein to the singular number include references to the
      plural and vice versa.

2.    EMPLOYMENT

2.1   The Company has, from the Commencement Date, employed the Executive and
      the Executive shall continue to faithfully serve the Company as President
      and Chief Executive Officer of the Company (or such other position as the
      Company may from time to time designate) subject to and upon the terms
      hereinafter set out.

2.2   Subject to the provisions for termination set out in Clause 9, the
      Employment shall continue unless and until terminated by either the
      Company or the Executive giving to the other not less than three (3)
      months' prior notice in writing to terminate the Employment, provided that
      such notice may only be given by the Executive any time after December
      31st, 2008.

                                       2
<PAGE>

2.3   The Executive represents and warrants that he is not bound by or subject
      to any court order, agreement, arrangement or undertaking which in any way
      restricts or prohibits him from entering into this Agreement or the
      Employment nor from performing his duties hereunder.

3.    EXECUTIVE'S DUTIES AND SERVICES

3.1   The Executive hereby undertakes with the Company that during the term of
      the Employment he shall use his best endeavours to carry out his duties
      hereunder and to protect, promote and act in the best interests of the
      Group.

3.2   Without prejudice to the generality of Clause 3.1 above, the Executive in
      his office as President and Chief Executive Officer of the Company (or
      such other position as the Company may from time to time designate)
      shall:-

      3.2.1 devote the whole of his attention, skill and time to the interests
            and affairs of the Group in the discharge of his duties as President
            and Chief Executive Officer (or such other position as the Company
            may from time to time designate) in relation to the Group, both
            during his hours of work (being the normal business hours of the
            Group together with such additional hours as the Executive may spend
            on the performance of his duties) and at such other times as the
            Executive may spend for the proper and efficient conduct of the
            Business (subject to appropriate holidays and vacation time as
            provided in this Agreement);

      3.2.2 in the discharge of such duties and in the exercise of such powers
            comply with all and any lawful directions and instructions from time
            to time made or given to him by the Board according to the best of
            his skills and ability and comply with all resolutions and
            regulations from time to time passed or made by the Board;

      3.2.3 in pursuance of his duties hereunder perform such services for any
            company in the Group and (without further remuneration unless
            otherwise agreed) accept such offices (including being appointed as
            director thereof) in any company in the Group as the Board may from
            time to time reasonably require; and

      3.2.4 faithfully and diligently perform such duties and exercise only such
            powers as are consistent with his office in relation to the Company
            and/or any company in the Group and use his best endeavours to
            promote the interests of the Group.

3.3   The Executive shall at all times keep the Board promptly and fully
      informed of the Executive's conduct of the Business or affairs of the
      Group and give promptly to the Board (in writing if so requested) all such
      information as the Board may reasonably require in relation to his conduct
      of the Business insofar as such information is or ought to be within the
      knowledge of the Executive and provide such written explanations as the
      Board may require in connection therewith.

3.4   The Executive shall carry out his duties and exercise his powers jointly
      with any other directors or executives as shall from time to time be
      appointed by the Board to

                                       3
<PAGE>

      act jointly with the Executive and the Board may at any time require the
      Executive to cease performing or exercising any of his duties or powers
      under this Agreement.

3.5   The Executive shall work in any place in the People's Republic of China or
      Canada or any part of the world which the Board may from time to time
      require for the proper performance and exercise of his duties and powers
      under this Agreement.

4.    REMUNERATION AND OTHER BENEFITS

4.1   In consideration for the performance of his duties hereunder and subject
      to the provisions of Clause 4.4, the Executive shall be entitled to
      receive with effect from the Commencement Date during the term of the
      Employment a salary at the rate of [*] Canadian dollars per annum
      (including any sum payable to the Executive as directors' fees from any
      company in the Group, any tax and duties payable by the Executive pursuant
      to the applicable laws) payable by 12 monthly instalments, each such
      instalment being payable in arrears into a bank account in the name of the
      Executive designated by the Executive to the Company on the last business
      day of each calendar month provided that if the Employment is terminated
      prior to the end of a calendar month, the Executive shall only be entitled
      to a proportionate part of such salary in respect of the period of
      Employment during the relevant month up to the date of termination.

4.2   Payment of such salary to the Executive referred to in Clause 4.1 shall be
      made by the Company.

4.3   The salary referred in Clause 4.1 shall be subject to review by the
      Compensation Committee on November 30th of each calendar year from 2006
      onwards.

4.4   The Executive shall continue to receive his salary during any period of
      absence on grounds of medical or physical ill-health up to a maximum of 90
      days in any period of twelve (12) months or such number of days not more
      than that prescribed by law (whichever is longer) provided that the
      Executive shall, if required by the Company, supply the Company with
      medical certificates covering the period of absence and/or undergo at the
      Company's expense a medical examination by a Executive appointed by the
      Company.

4.5   The payment of tax, duties, social security and like payments arising out
      of the Employment shall be dealt with by the parties in accordance with
      the applicable laws and regulations. The Executive undertakes to the
      Company promptly to discharge any payments which shall be paid by him
      pursuant to the applicable laws as they fall due and to indemnify the
      Company against any liability in respect thereof which may fall upon the
      Company as a result of his failure to pay.

4.6   The Executive shall be entitled to bonus as approved by the Compensation
      Committee.

4.7   The Company shall provide the Executive, his spouse and children benefits
      to health, medical and accidental insurance policies which will be taken
      out by the Company in accordance with its human resources policy and
      subject to approval by the Compensation Committee. The Company will
      reimburse the Executive, his

                                       4
<PAGE>

      spouse and children reasonable medical and emergency expenses before such
      policies are taken out.

4.8   The Company shall provide the Executive reasonable housing or housing
      allowance in accordance with its human resources policy and subject to
      approval by the Compensation Committee.

4.9   The Company shall provide each of the Executive, his spouse and children
      two (2) return business class airfares between Canada and the People's
      Republic of China in a year.

5.    EXPENSES

      The Executive shall be reimbursed all reasonable out-of-pocket business
      expenses (including entertainment, travelling, telephone and hotel
      expenses) properly and reasonably incurred by him in relation to the
      Business or in the discharge of his duties under this Agreement, providing
      the Executive complies with directions of the Board as may from time to
      time be made in relation to such expenses and such expenses shall be
      evidenced in such manner as the Board may require.

6.    LEAVE

6.1   The Executive shall (in addition to Sundays and statutory holidays) be
      entitled, at the absolute discretion of the Company, to paid holiday of
      twenty-five (25) working days in each holiday year during the continuance
      of the Employment to be taken at such time or times convenient to the
      Company as the Board may agree. The Executive may cash out or carry
      forward up to one year's unused holiday entitlement to a subsequent
      holiday year and no payment in lieu will be paid therefor.

6.2   The Executive will be entitled on termination to pay in lieu of any unused
      holiday entitlement. Where the Executive has taken holiday in excess of
      his accrued entitlement, the Executive will be required to repay any
      excess salary received in respect of such holiday at the rate of 1/365th
      of the Executive's salary for each day.

7.    SHARE DEALINGS

      The Executive shall comply where relevant with every rule of law and every
      regulation applicable to the Company and its securities and every
      regulation contained in the By-Laws and the Transaction Documents or
      otherwise applicable to the Company in force in relation to dealings in
      shares, debentures or other securities of the companies in the Group and
      in relation to unpublished price-sensitive information affecting the
      shares, debentures or other securities of any company in the Group
      provided always that in relation to overseas dealings the Executive shall
      also comply with all laws of the state and all regulations of the stock
      exchange, market or dealing system in which such dealings take place.

8.    INCAPACITY

8.1   If the Executive is absent from work because of Incapacity such fact
      should, where practicable, be reported by the Executive to another
      director of the Company and, after three continuous days' absence, the
      Executive must provide, for sickness

                                       5
<PAGE>

      allowance purposes, a medical practitioners' certificate(s) of his
      Incapacity and its cause covering the whole of the Executive's period of
      absence.

8.2   If the Executive is absent from work due to Incapacity and has complied
      with the provisions of Clause 8.1, he will continue to be paid sickness
      allowance in accordance with the applicable laws or Clause 4.4 whichever
      is more favourable to the Executive. If the Executive's absence exceeds 30
      consecutive days, the Company will be entitled to appoint a temporary
      replacement to cover the Executive's absence.

8.3   The Executive will, whenever requested by the Board (in circumstances
      where the Board has reasonable grounds to believe that the Executive may
      be suffering from any Incapacity or that the Executive may not be fit to
      carry out his duties), submit to examination by a medical practitioner
      selected and paid for by the Company. The Executive hereby authorises such
      medical practitioner to disclose to and discuss with the Board any matters
      which, in the opinion of the medical practitioner, might hinder or prevent
      the Executive (if during a period of Incapacity) from returning to work or
      (in other circumstances) from properly performing his duties at any time.

9.    TERMINATION

9.1   If at any time during the term of the Employment, the Executive shall:

      9.1.1 be guilty of fraud or other gross or wilful misconduct, or gross
            incompetence or habitual neglect of duty, or commit any other
            serious breach of this Agreement; or

      9.1.2 act in any manner (whether in the course of his duties or otherwise)
            which is likely to bring him or any Group Company into disrepute or
            prejudice the interests of any Group Company; or

      9.1.3 commit any act of bankruptcy or become insolvent or make any
            arrangements or composition with his creditors generally; or

      9.1.4 fail to pay his personal debts generally; or

      9.1.5 be convicted of any criminal offence involving his integrity or
            honesty; or

      9.1.6 refuse to carry out any reasonable lawful order given to him by the
            Board in the course of the Employment or fail diligently to attend
            to his duties hereunder (including without limitation, absent
            himself of meetings of the Board during a continuous period of 6
            months without special leave of absence from the Board); or

      9.1.7 be guilty of continuing unsatisfactory conduct or poor performance
            of his duties, after having received a written warning from the
            Company relating to the same; or

      9.1.8 resign as a director of any Group Company without the Board's
            written consent; or

      9.1.9 be or become prohibited by law from being a director,

                                       6
<PAGE>

      the Company may terminate the Executive's employment hereunder forthwith
      without any notice or payment in lieu of notice and upon such termination
      the Executive shall not be entitled to any payment whatsoever (other than
      in respect of unpaid salary and unused annual leave actually accrued) or
      to claim any compensation or damages in respect of such termination.

9.2   Any delay or forbearance by the Company in exercising any right to
      terminate this Agreement shall not constitute a waiver of such right.

9.3   Subject to provisions set out in Clauses 2.2 and 9.1, upon termination of
      the Employment, the Company will compensate the Executive one month salary
      for every year of services.

9.4   Forthwith upon the termination of the Employment hereunder, and/or at any
      other time if the Company shall so request, the Executive shall deliver to
      the Company all documents (including correspondence, lists of customers,
      notes, memoranda, plans, drawings and other documents of whatsoever
      nature), models or samples made or compiled by or delivered to the
      Executive during the Employment and concerning the Business. For the
      avoidance of doubt it is hereby declared that the property in all such
      documents as aforesaid shall at all times be vested in the relevant Group
      Company.

9.5   The Executive acknowledges that the Company may, during all or any part of
      any period of notice whether given by the Company or the Executive to
      terminate the Executive's employment under this Agreement require the
      Executive not to attend work and/or not to undertake all or any of his
      duties and/or exclude him from any premises of the Company, provided that
      for the avoidance of doubt during such period the Executive shall continue
      to receive salary and other contractual benefits provided by this
      Agreement.

9.6   The Executive agrees that he will not, at any time after the termination
      of the Employment, represent himself as still having any connection with
      the Company or any other Group Companies, save as a former employee for
      the purpose of communicating with prospective employers or complying with
      any applicable statutory requirements.

9.7   The Executive shall forthwith resign in writing from all directorships,
      trusteeships and other offices he may hold from time to time with the
      Company or any other Group Companies without compensation for loss of
      office in the event of:

      9.7.1 the termination of the Employment; or

      9.7.2 either the Company or the Executive serving on the other notice of
            termination of the Employment.

9.8   In the event of the Executive failing to comply with his obligations under
      Clause 9.6, he hereby irrevocably and unconditionally authorises the
      Company to appoint another person in his name and on his behalf to sign or
      execute any documents and/or do all things necessary or requisite to give
      effect to such resignations as referred to in Clause 9.6.

                                       7
<PAGE>

10.   UNDERTAKINGS OF THE EXECUTIVE

10.1  The Executive undertakes to the Company that:

      10.1.1 for so long as he remains being employed by any Group Company or
             remains as an officer of any Group Company, and for a period of
             twelve (12) months after he ceases to be an employment or officer
             of any Group Company (as the case may be), he will not, without the
             prior written consent of the Board:

            (a)   in the People's Republic of China and such other territories
                  where the Group carries on its business or part thereof (the
                  "TERRITORY") either on his own account or through any of his
                  Affiliates, or in conjunction with or on behalf of any other
                  person, carry on or be engaged, concerned or interested
                  directly or indirectly whether as shareholder, director,
                  employee, partner, adviser, agent or otherwise carry on any
                  business in direct competition with the business or proposed
                  business of the Group;

            (b)   either on his own account or through any of his Affiliates or
                  in conjunction with or on behalf of any other person, solicit
                  or entice away or attempt to solicit or entice away from any
                  Group Company, the custom of any person, firm, company or
                  organization who is or shall at any time within twelve (12)
                  months prior to such cessation have been a customer, client,
                  representative, agent or correspondent of such Group Company;

            (c)   either on his own account or through any of his Affiliates or
                  in conjunction with or on behalf of any other person, employ,
                  solicit or entice away or attempt to employ, solicit or entice
                  away from any Group Company any person who is or shall have
                  been at the date of or within twelve (12) months prior to such
                  cessation an officer, manager, consultant or employee of any
                  such Group Company, whether or not such person would commit a
                  breach of contract by reason of leaving such employment; and

            (d)   either on his own account or through any of his Affiliates, in
                  relation to any trade, business or company, use a name
                  including any word used by any Group Company in its name or in
                  the name of any of its products, services or their derivative
                  terms, or the Chinese or English equivalent or any similar
                  word in such a way as to be capable of or likely to be
                  confused with the name of any Group Company or the product or
                  services or any other products or services of any Group
                  Company, and the Executive shall use all reasonable endeavours
                  to procure that no such name shall be used by any of his
                  Affiliates or otherwise by any person with which he is
                  connected; and

      10.1.2 any expansion, development or evolution of the activities of any
             business or any appropriate opportunity offered to him shall
             (unless the Company

                                       8
<PAGE>

            otherwise agrees) only be pursued or taken up through the Company or
            another Group Company.

10.2  Each of Clauses 10.1.1(a), 10.1.1(b), 10.1.1(c), 10.1.1(d) and 10.1.2
      shall be deemed to constitute a separate undertaking and shall be
      construed independently of each other, and so that if any such undertaking
      is held to be void or invalid, but would not have been so held if part of
      the wording were deleted, or its extent reduced or modified, then such
      undertaking shall apply with such modification(s) as may be necessary to
      make the same valid and enforceable.

11.   CONFIDENTIAL INFORMATION

11.1  The Executive shall not, at any time during the term of the Employment or
      after the termination of the Employment without limit in point of time,
      except authorised or required by his duties:-

      11.1.1 use, take away, conceal or destroy any Confidential Information for
             his own purpose or for any purpose other than that of the Group; or

      11.1.2 divulge or communicate to any person any Confidential Information
             except to those of the employees of a Group Company on a
             need-to-know basis; or

      11.1.3 through any failure to exercise all due care and diligence, cause
             any unauthorised disclosure of any Confidential Information
             (including without limitation):-

            (a)   relating to the dealings, organisation, business, finance,
                  transactions or any other affairs of the Group or its clients
                  or customers; or

            (b)   in respect of which any such company in the Group is bound by
                  an obligation of confidence to any third party; or

            (c)   relating to the working of any process or invention which is
                  carried on or used by any company in the Group or which he may
                  discover or make during his Employment; including anything
                  which by virtue of Clause 12 becomes the absolute property of
                  the Group,

            but so that these restrictions shall cease to apply to any
            information or knowledge which may (otherwise than through the
            default of the Executive) become available to the public generally
            or otherwise required by law or any applicable regulations to be
            disclosed.

11.2  Since the Executive may obtain in the course of the Employment by reason
      of services rendered for or offices held in any Group Company knowledge of
      the trade secrets or other confidential information of such company, the
      Executive hereby agrees that he will at the request and cost of the
      Company or such other company enter into a direct agreement or undertaking
      with such company whereby he will accept restrictions corresponding to the
      restrictions herein contained (or such of them as may be appropriate in
      the circumstances) in relation to such products and

                                       9
<PAGE>

      services and such area and for such period as such company may reasonably
      require for the protection of its legitimate interests.

11.3  All notes, memoranda, records and writings made by the Executive in
      relation to the Business or concerning any of its dealings or affairs or
      the dealings or affairs of any clients or customers of the Group shall be
      and remain the property of the Group and shall be handed over by him to
      the Company (or to such other company in the Group as the Company may
      direct) from time to time on demand and in any event upon his leaving the
      service of the Company and the Executive shall not retain any copy
      thereof.

12.   INTELLECTUAL PROPERTY

12.1  The parties foresee that the Executive has created and may create designs
      or other intellectual property in the course of his duties hereunder and
      agree that in this respect the Executive has a special responsibility to
      further the interests of the Company and the Group.

12.2  Any invention, production, improvement or design made or process or
      information discovered or copyright work or trade mark or trade name or
      get-up source code or any other intellectual property created by the
      Executive during the continuance of his Employment hereunder (whether
      before or after the date hereof or whether capable of being patented or
      registered or not and whether or not made or discovered in the course of
      his employment hereunder) in conjunction with or in any way affecting or
      relating to the business of any company in the Group or capable of being
      used or adapted for use therein or in connection therewith shall forthwith
      be disclosed to the Company and shall belong to and be the absolute
      property of such company in the Group as the Company may direct.

12.3  The Executive, if and whenever required to do by the Company, shall at the
      expense of a company in the Group apply or join with such company in
      applying for letters patent or other protection or registration for any
      such invention improvement design process information work trade mark name
      or get-up source code or other intellectual property rights as aforesaid
      which belongs to such company and shall at the expense of such company
      execute and do all instruments and things necessary for vesting the said
      letters patent or other protection or registration when obtained and all
      right title and interest to and in the same in such company absolutely and
      as sole beneficial owner.

12.4  The Executive hereby irrevocably appoints the Company to be his Attorney
      in his name and on his behalf to execute and do any such instrument or
      thing and generally to use his name for the purpose of giving to the
      Company the full benefit of this Clause 12 and in favour of any third
      party a certificate in writing signed by any director of the Company that
      any instrument or act falls within the authority hereby conferred shall be
      conclusive evidence that such is the case.

13.   REASONABLENESS

      While the restrictions and obligations contained in Clauses 10, 11 and 12
      (on which the Executive has had the opportunity to take independent
      advice, as the Executive hereby acknowledges) are considered by the
      parties to be reasonable in all the

                                       10
<PAGE>

      circumstances. It is recognised by the parties that restrictions and
      obligations of the nature in question may fail for technical and/or
      unforeseen reasons and accordingly it is hereby agreed and declared that
      if any such restrictions or obligations shall be adjudged to be void as
      going beyond what is reasonable in all the circumstances for the
      protection of the interest of the Company or any other company in the
      Group but would not be void if part of the wording thereof were deleted or
      the periods (if any) thereof were reduced the said restriction shall apply
      with such modifications as may be necessary to make it valid and
      effective.

14.   WAIVER AND REMEDIES

14.1  No failure or delay on the part of either party to exercise any power,
      right or remedy hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise by either party of any power, right or remedy
      preclude any other or further exercise of the remaining part thereof or
      the exercise of any other available power, right or remedy by that party.

14.2  The remedies provided herein are cumulative and are not exclusive of any
      remedies provided by law.

15.   FORMER SERVICE AGREEMENTS

15.1  This Agreement shall be in substitution for and supersedes any previous
      service agreement, arrangements or undertakings entered into between any
      company in the Group and the Executive or any of his Affiliates and any
      terms of employment previously in force between any such company and the
      Executive or any of his Affiliates, whether or not on a legal or formal
      basis and the Executive now acknowledges that such agreements, arrangement
      or undertakings are now terminated.

15.2  The Executive hereby acknowledges that he has no claim of any kind against
      any company in the Group (other than in respect of accrued but unpaid
      management fees, director loan and retained earnings as a shareholder) and
      without prejudice to the generality of the foregoing he further
      acknowledges that he has no claim for damages against any company in the
      Group for the termination of any previous service agreements, arrangements
      or undertakings in accordance with Clause 15.1 for the sole purpose of
      entering into this Agreement.

15.3  The terms of this Agreement may not be modified, altered, varied or added
      to except by agreement in writing signed by the parties to this Agreement.
      None of the rights or duties of the Executive under this Agreement may be
      assigned, transferred or sub-contracted.

15.4  This Agreement embodies all of the terms and provisions of and relating to
      the employment of the Executive by the Company.

16.   REPRESENTATIONS AND WARRANTIES

      The Executive represents and warrants to the Company, as follows:

16.1  that he has no criminal convictions;

                                       11
<PAGE>

16.2  that he has not been investigated by any regulatory or government
      authority,

16.3  that he has the necessary work permits (if required) to work for the
      Group; and

16.4  that he had the benefit of independent legal advice before signing this
      Agreement.

17.   SEVERABILITY

      The provisions of this Agreement are severable and if any provision is
      held to be invalid or unenforceable by any court of competent jurisdiction
      then such invalidity or unenforceability shall not affect the remaining
      provisions of this Agreement.

18.   NOTICES

18.1  Any notice to be given hereunder to the Executive may be served by being
      handed to him personally or by being sent by registered post to him at the
      address provided at the head of this Agreement (save that, where such
      address is outside the People's Republic of China, such notice may be sent
      by airmail) and any notice to be given to the Company may be served by
      being left at or sent by registered post to its place of business in China
      for the time being.

18.2  Any notice served by registered post in the city to which is addressed
      shall be deemed to have been served on the second day (excluding Sundays
      and statutory holidays) following the date of posting and any notice
      served by airmail shall be deemed to have been served on the seventh day
      (excluding Sundays and statutory holidays) following the date of posting
      and in proving such service it shall be sufficient proof that the notice
      was properly addressed and posted as a prepaid letter by registered post
      or airmail (as the case may be).

18.3  All notices or communications required to be served or given pursuant to
      this Agreement shall be in writing.

19.   LAW

      This Agreement is governed by and shall be construed in all respects in
      accordance with the laws of Ontario, Canada.

                                       12
<PAGE>

IN WITNESS whereof this Agreement has been executed as a deed and delivered by
the parties on the day and year first above written.

SIGNED BY THE PARTIES ON THE DATE FIRST ABOVE WRITTEN.

/s/
________________________________________
Name:
For and on behalf of
CANADIAN SOLAR INC.
in the presence of:

/s/
________________________________________
Witness

/s/
________________________________________
QU XIAO HUA
in the presence of:

/s/
_______________________________________
Witness

                                       13

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