EFTA01366499.pdf

Amendment #4 Page 70 of 868 9f ref mil Specifically, hydroelectric power generation facilities requre continuous water flow for their °retailer,. Shifts in weather or climate patterns, seasonal geoptation the timing and rate d meth% mei off and other factors beyond our coned may reduce the water flow to our hydroielectnc facilities In aSclmon water ngts are also generally owned or controlled by gorernment metes that reserve the right to ccrtrol water levels or may encase water-use requirements as a condition of license renewal Any material reduction in the water flow to our hydro-electnc facilities voted lint our dairy to produce and rrerket electncrty from these facilities and could haw a material adverse effect on the results dos operators. Fa example. Beard w cixrently expenencing a hstorc drought that has led to °seamen. blackouts due to the country's reliance on hydroelectric power. The drought has affected the erectncoy production at certain of our hydro-electnc facilities If the ckought continurs in these areas it could rrotenary reduce electricity producoon at certain d our rrydroelectnc fawn es and any additional hydro-electnc facilities we may acquire in the future We base our irwestnent decisions witi respect to each energy facility on the findings of related studies conducted on-see prof to oxistructon Of based on historical cordit oils at exisang facilites In additen we rely on hydrological etudes and data to confirm there is SuffiCtent water now available to generate enough electricity la our hycroelednc ;coeds to be economically ve de and such studee may prove urreliade etrivever, actual climatic conditions a: a tottery site may not conform to tne fircirgs of these studes and therefore, our energy facilities may rot meet anticipated production levels or the rated capacity of our generation assets which could adversey affect our business financial condition and results of operatens are cash flows For example. in selecting aces in incle we depend on meteorological and topographical data compiled by a third-party expert as there are no feasibility a site selection studies earned at W governmental entities. There can be no assurance bat the actual vreatrer ccrelons we conform to the historical mewed data or Mat the assumptions nude during Ire assessment of the relevant see for the power project are correct. While we currently own only suer, wind andhydro-olectric energy projects, in the Mute we expect to expand our acquisition strategy to include other types of tiny or transmission projects. To the extent that we expand ow operations to Include new business segments, ow business operations may suffer from a leek of txperfence, which may materially and adversely affe.•t our business, financial condition, results of operations and cash flows. We have tented experience in energy generation operations other than those innomng the generation of soot, wind or hydro-electric power Asa result of tits Ixk of experience. we may be prone to errors f we expand our ixorects to include technologes beyond solar, wind and hydroelectric energy We lack the technical haring and expenence web Oeyeloprng starting of operatrg such other generation facet*. Wth no direct training or experience in these areas, out management may not be fui:y aware of the many *mode requirements related to rod:Pang in Industries beyond solar wire and hydroelectnc energy generation Adoexinaly. we may be exposed to increased Operating cods unforeseen tobilhes or rode and regulatory and ennronrnental concerns associated with entering new sectors of the power generation intlyStry who hcould have an adverse impact on our business as urea as place us at a competent deachrantage relative to more established non-solar, non-wind or nark hydra-deo:DC energy market participants In °dial on such verlures mold require a disproportionate arnourt of o✓ managements attention and resources Qt operations earnngs are us mate Mandel success could suffer irreparable reran die to our managements leek d experience in these industries We may rely, to certain extent on the expertise arid experience of industry ',natant& w4 we may have to hire acationsi experienced personrel to assist us with our operations We can oiler no assurance that if we expand our business beyond solar wind are hydro-electric energy generation, we will be able to entente,/ acquit end operate projects in such new areas an achieve our targeted financial goals 62 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058027 CONFIDENTIAL SDNY_GM_00204211 EFTA01366499