EFTA01366662.pdf

Amendment #4 Page 233 of 868 TO* 91. Government Incentives Each of the markets that we expect to operate in has established various interlines and financial rrecrensrns to supped the cost and to accelerate the adoption of renewable energy These incentwes help calayze pwate sector inveslmerts in renewable energy and erica ncy °resorts Set forth below is a summary Cl the various programs and incentives that we expect will apply to ou business Chine b recent years, the NORC has initiated feed-in lard programs fa bath solar and wind energy Under nese *ado tariff programs, elgine solar and wind projects are entitled to receive a special tariff the amount of which is set by NDRG potty and yarn may vary based on the typed awe] (in the case of solar, for example. utility - scale versus Pstntxted generator projects, in the ewe of wind, onshore versus offshore developments). geographical location of the project and the date on wrich it ccenrrenced coristnxban Once a solar project qualifies for a particular tariff. the project is entitled under NCRC policy to cortinue to receive the tans for a period of 20 years horn Roc GOD The special tariff remains a:natant. but consists of two components which may !Pewee/yes orange One cornponert is set to equal the prevailing rate that gad comps nes pay for base-Ion desulphurized coal power (thus it e subject to change. though Ira base rate is currently determneci by policy rather than market gxiarg and in recent history has not been subsea to substareal fluctualore) This base Iced component is paid drectly by the grid companies to the solar or wind energy project The other comparen called the 'green component,' makes up the difference between the to special tariff and the prevailing base-tad rate The 'green component- of the tariff is pad from a *renewable energy development face administered by Chinas Minetry of Finance. which m turn collects a surcharge that the gnd converses charge to their end leers Payment of the green components rot merle on t re same senator as payment of the base bad component Generally payments of the base load component are made rionthy write payments of the green corroonent are requred under law to be pad quanerty but in metre in some provinces may be made only two or three bores per year Addtonally there is typically a gap peen of longer than one year, between an energy plant's COO and the dale on which a receives its first poyrrert Cl the green component of I he feed-in tariff b addition to the feed-in tare program the soar industry has also benefited Iran the 'Golden Sun Program' demonstreon program that Lunched in Axe as a strategy to support and furlhal% development of the technology progress and scare of the national solar industry Under the Golden Sun Program, the central government provided subs des to ethgible solar projects nterconnected to the power grid in an amxrt of 50% a as total investment and to eligible cifgrd solar projects boated in rerrcte areas veghool electricity supply al the amount of 70% of its total indestment Solar awe% participating in China s feed-in tariff program described below wore not eligible to denote* in the Golden Sun Program The Golden Sum Program expired in 2013 Cnrese financial rettutons may offer preferential bans voth a financial interest subsidy to renewable energy development and obi eahon prorcts that are listed in the natonal renewable energy industrial development guidance catalogue and satisfy certain conditions for granting loans Fealty under applicable Chinese tax law and regdatons an enterprise engaged in public infrastructure protects approved after January 1 2C08 including solar and vine power projects that satisfy certain re:jun.(1er% are entitled to a thee-year full exempbon from the enterprise income tax followed by a treee-year 50% exemption cornrrenorg Iron the first year it generates cperatng income In addt on, wind power proects are ereded to a 50% refund or the value-added tax levied on tree eleancly saes 225 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-0058190 CONFIDENTIAL SDNY GM_00204374 EFTA01366662