Canadian Oil Sands issues Unit options ("options") as part of its long-term incentive plan for employees. There were 212,227 options granted in 2007 with an average exercise price of $29.93 per option and a fair value of approximately $1 million, which will be amortized into income over a three-year vesting period. On February 4, 2008 another 271,045 options were granted with a fair value of approximately $1 million. There were 2.8 million options outstanding at February 28, 2008, representing less than one percent of Units outstanding. Each option represents the right of the optionholder to purchase a Unit at the exercise price determined at the date of grant. For options granted after June 1, 2005, the exercise price is reduced by distributions over a threshold amount. The options vest by one-third following the date of grant for the first three years and expire seven years from the date of grant.

In addition, 34,953 performance unit rights ("PUPs") were issued in 2007 and had an accrued value of approximately $3 million at December 31, 2007. On February 4, 2008 an additional 30,605 PUPs were granted with a fair value of approximately $1 million. The PUPs are earned based on total unitholder return at the end of three years compared to a peer group, with the actual unit equivalents earned ranging from zero to double the target award. More detail on the Trust's stock-based compensation plans can be found in Note 16(a) to the audited Consolidated Financial Statements, as well as the Trust's Management Proxy Circular dated March 7, 2007.

Canadian Oil Sands Units trade on the Toronto Stock Exchange under the symbol COS.UN. The Trust had a market capitalization of approximately $19 billion with 479 million units outstanding and a closing price of $38.71 per Unit on December 31, 2007. A table summarizing the Units issued in 2007 is included in Note 15(a) of the audited Consolidated Financial Statements.