diff --git a/compile/api/SameAPI.scala b/compile/api/SameAPI.scala
index c363eaeb9..5d0d87c2e 100644
--- a/compile/api/SameAPI.scala
+++ b/compile/api/SameAPI.scala
@@ -325,7 +325,7 @@ class SameAPI(includePrivate: Boolean, includeParamNames: Boolean)
 		sameTypeParameters(a.parameters, b.parameters) &&
 		sameType(a.baseType, b.baseType)
 	def sameAnnotatedType(a: Annotated, b: Annotated): Boolean =
-		sameSimpleType(a.baseType, b.baseType) &&
+		sameType(a.baseType, b.baseType) &&
 		sameAnnotations(a.annotations, b.annotations)
 	def sameStructure(a: Structure, b: Structure): Boolean =
 		samePending(a,b)(sameStructureDirect)
diff --git a/compile/interface/API.scala b/compile/interface/API.scala
index 3a5e9c2b1..767b273e6 100644
--- a/compile/interface/API.scala
+++ b/compile/interface/API.scala
@@ -134,7 +134,7 @@ final class API(val global: CallbackGlobal) extends Compat
 			if(a.assocs.isEmpty) Array(new xsbti.api.AnnotationArgument("", a.args.mkString("(", ",", ")"))) // what else to do with a Tree?
 			else a.assocs.map { case (name, value) => new xsbti.api.AnnotationArgument(name.toString, value.toString) }.toArray[xsbti.api.AnnotationArgument]
 		)
-	private def annotated(in: Symbol, as: List[AnnotationInfo], tpe: Type) = new xsbti.api.Annotated(simpleType(in, tpe), annotations(in, as))
+	private def annotated(in: Symbol, as: List[AnnotationInfo], tpe: Type) = new xsbti.api.Annotated(processType(in, tpe), annotations(in, as))
 
 	private def viewer(s: Symbol) = (if(s.isModule) s.moduleClass else s).thisType
 	private def printMember(label: String, in: Symbol, t: Type) = println(label + " in " + in + " : " + t + " (debug: " + debugString(t) + " )")
diff --git a/compile/persist/APIFormats.scala b/compile/persist/APIFormats.scala
index 441b1b266..e9db50ac0 100644
--- a/compile/persist/APIFormats.scala
+++ b/compile/persist/APIFormats.scala
@@ -50,7 +50,7 @@ trait APIFormats extends FormatExtra
 	implicit def formatSource(implicit pa: Format[Array[Package]], da: Format[Array[Definition]]): Format[SourceAPI] =
 		p2( (s: SourceAPI) => (s.packages, s.definitions))( (p, d) => new SourceAPI(p, d) )(pa, da)
 
-	implicit def formatAnnotated(implicit t: Format[SimpleType], as: Format[Array[Annotation]]): Format[Annotated] =
+	implicit def formatAnnotated(implicit t: Format[Type], as: Format[Array[Annotation]]): Format[Annotated] =
 		p2( (a: Annotated) => (a.baseType,a.annotations))(new Annotated(_,_))(t,as)
 
 	implicit def formatPolymorphic(implicit t: Format[Type], tps: Format[Array[TypeParameter]]): Format[Polymorphic] =
diff --git a/interface/type b/interface/type
index ac0926e92..dbb393dd6 100644
--- a/interface/type
+++ b/interface/type
@@ -16,7 +16,7 @@ Type
 		baseType: Type
 		value: String
 	Annotated
-		baseType : SimpleType
+		baseType : Type
 		annotations : Annotation*
 	Structure
 		parents : ~Type*
diff --git a/sbt/src/sbt-test/source-dependencies/continuations/Foo.scala b/sbt/src/sbt-test/source-dependencies/continuations/Foo.scala
new file mode 100644
index 000000000..580f7175a
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/continuations/Foo.scala
@@ -0,0 +1,3 @@
+trait Foo
+trait BarA
+trait BarB
\ No newline at end of file
diff --git a/sbt/src/sbt-test/source-dependencies/continuations/Use.scala b/sbt/src/sbt-test/source-dependencies/continuations/Use.scala
new file mode 100644
index 000000000..bdb848464
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/continuations/Use.scala
@@ -0,0 +1,6 @@
+import scala.util.continuations._
+
+class Use {
+  val a = new Baz
+  def bar: (Foo with BarA) @cpsParam[Unit, Unit] = a.foo
+}
diff --git a/sbt/src/sbt-test/source-dependencies/continuations/build.sbt b/sbt/src/sbt-test/source-dependencies/continuations/build.sbt
new file mode 100644
index 000000000..b0f2eb814
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/continuations/build.sbt
@@ -0,0 +1,7 @@
+autoCompilerPlugins := true
+
+addCompilerPlugin("org.scala-lang.plugins" % "continuations" % "2.9.2")
+
+scalaVersion := "2.9.2"
+
+scalacOptions += "-P:continuations:enable"
\ No newline at end of file
diff --git a/sbt/src/sbt-test/source-dependencies/continuations/changes/Def1.scala b/sbt/src/sbt-test/source-dependencies/continuations/changes/Def1.scala
new file mode 100644
index 000000000..3cc76e193
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/continuations/changes/Def1.scala
@@ -0,0 +1,5 @@
+import scala.util.continuations._
+
+class Baz {
+  def foo = shiftUnit[Foo with BarA, Unit, Unit](null)
+}
diff --git a/sbt/src/sbt-test/source-dependencies/continuations/changes/Def2.scala b/sbt/src/sbt-test/source-dependencies/continuations/changes/Def2.scala
new file mode 100644
index 000000000..9a176dffb
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/continuations/changes/Def2.scala
@@ -0,0 +1,5 @@
+import scala.util.continuations._
+
+class Baz {
+  def foo = shiftUnit[Foo with BarB, Unit, Unit](null)
+}
diff --git a/sbt/src/sbt-test/source-dependencies/continuations/test b/sbt/src/sbt-test/source-dependencies/continuations/test
new file mode 100644
index 000000000..2aeb714be
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/continuations/test
@@ -0,0 +1,10 @@
+# Compile code with a type (Foo with BarA) @cpsParam...
+# The spec says only simple types can be annotated, but scalac allows any type.
+$ copy-file changes/Def1.scala Def.scala
+> compile
+
+# To ensure it was properly processed, change it to (Foo with BarB) @cpsParam...
+# This should invalidate Use.scala, which expects it to be BarA and so compilation should fail.
+$ delete Def.scala
+$ copy-file changes/Def2.scala Def.scala
+-> compile
\ No newline at end of file