Overview of related party transactions

(A) the original contract Overview

19 of the third session of the Board meeting held on May 7, 2009 and May 26, 2009 to convene the 2009 first extraordinary general meeting examined and adopted the "Photoelectric Co., Ltd.power inverter  and Xi'an North signed-laws take effect conditions of land and buildings lease contract motion.

In September 2010, after the implementation of a major reorganization of assets, land and building lease contract (hereinafter referred to as the "original contract") formally came into effect.

In November 2010, the company purchased the subject of the defense in a major reorganization of assets as the investor duly incorporated a wholly owned subsidiary of Xi'an Northern Optoelectronics Technology Defense Co., Ltd. (hereinafter referred to as "defense company") company from northern photoelectric Group Co., Ltd. ( Xi'an North Photoelectric Co., Ltd., hereinafter referred to as the "photoelectric Group") leased land and buildings used by defense companies.

Optical Group will be located in Xi'an, Shaanxi Province, Changle Road 35 office space, plant and / or warehouse and owned land leased to the company using the buildings lease area of ​​73,279.03 square meters, the specific location for the eastern outskirts of Xi'an Changle Road, Xi'an main road, south, west of Park Road North East near Wanshoulu the Department of industrial enterprises of the region is relatively concentrated geographically, water, electricity, heat,solar panel  communications, and other large supporting facilities are complete. The rent of the leased property to 500 million a year when market conditions change, the two sides can be adjusted rent.

(B) amend the main content

Increase the lease area: the defense corporate office and production space needs, after consultation with the Optoelectronics Group, increased lease part of the building, mainly: Building the teaching building of the training center, the Experimental Station, economic and trade floor, 109 office buildings, 107,185 plant, military library. Increase the lease area of ​​33,280.68 square meters leased area increased to 106,560 square meters.

Building Lease Unit Price: In recent years, economic development shows a growing trend, with reference to the the leasehold buildings location of the eastern outskirts of Xi'an industrial office space, production space rental price growth level, taking into account the overall leasing and confidentiality requirements, negotiation decided building leasing unit price of 68.23 yuan / year / square meters to 78.98 yuan / year / square meters, the annual rent of the relevant land use rights and buildings involved from 5,000,000 to $ 8.4 million.

(C) The voting of the Board of Directors

September 27, 2012, the Company held the 18th meeting of the fourth session of the Board, agreed by 4 votes, one vote against and 0 abstentions considered by the lease contract "signed on the revision of the Optoelectronics Group <land and buildings> motion. " The Board of Directors of the Company in the vote on the above motion, associate director of Wang Xiaopeng, Xing Gong Li Ke Yan, Xiong Xi Ran, water waves, Yue Jianshui abstained from voting. The contents see company Pro 2012-37, No. 18 of the Fourth Board of Directors Earnings Release ".

Second,grid tie inverter the association of CLC

(A) related party

Company Name: Northern Optoelectronics Group Co., Ltd.

Legal Representative: Wang Xiaopeng

Business Type: Limited Liability Company