EFTA01366498.pdf

Amendment #4 Page 69 of 868 TAIT of Foriftenn electricity generated by our parts and prioects. which may reenci our ability to negotiate favorable terms under new PPM and could impact ou ability b find new customers for the electncry generated by our generation fablees should the become necessary Acetonely, the PPM in I roa Thailand China are Peru are in the standard form presented by the mites are accord right we have Inroad or no ability to negotiate the terms of etch PPAs Furthermore if the financial condition of these tames and/or power psoriases deteriorated or government polo es or regJetions to which they are currently subject that compel them to source renewable energy supplies charge. demand for electricity produced oy oil plants could be regatme/y impeded. In addition provisions in our power sale arrangements or applicable taws may provide for the curtailment of delivery of electricity for various reasons, inducing to prevent damage to transmission systems. for system emergencies force immure or for economic reasons Such determent would reduce revenues to us from power sale arrargemerts If we cannot enter into power sale arrangements on terms favorable to us. or al all. or if the purchaser cheer our power sale arrangements were to exercise as curtailment or other r6nts to reduce purchases or payments under such arrangements our revenues and cur decisions regarding development of additional projects may be adverse,/ affected A significant deterioration In the financial performance of our tawnier/DA industrial or government customers could materially adversely affect our cestdbuted generation business. Tre financial performance of our distributed generatron busneSS depends in part upon the continued viability and financial Stabity of our ccestorners in the commerce], tdustrwl and governmental sectors r our cominnrcdi inastnal Or governmental CustOMEIS are materna,' and adverSeey affected try an e0OnOM;Cd0wrilan. nnreaSe un ribbon or other factors one a more of our largest customers could eh auler financial difbcully and possibly bankruptcy If ore or more of our largest customers were to encounter financial &fruity or declare bankruptcy tney may reduce their payrrents under tte PPA to us or stop them artogethe My interruption or termination in payments by our customers woira resit* n less cash being pad lathe special purpose legal entities we establish to own and I nonce cur protects. which could adversely affect the entities ability to pay our lenders in such a case. the amount of disinbUatle cash held by Ire entities would decrease. &Iversen affecting the cash flows we receive from such entities in adahan our ability to finance additional new protects with PPM from etch customers would be adversely affected, undermning our ability to grow our tusness Any reducton ce termination of payments by ore or more of cur principal distributed generation customers could have a material adverse effect on our business financial condrton and results of operations The generation of electric energy from solar, wind and hydro-electric energy sources depends heavily on suitable meteorological conditions. If weather conditions are unfavorable, our electricity generation, and therefore revenue horn our renewable generation facilities using our systems, may be substantially below our expectations. The electrioty prod.ced and revenues generated by a solar etectnc generation tacitly are inherently dependent on su table solar conditions and associated weather cordtons The operating performance of wind farms depends on wind speeds and cater meteorological and physical condnons al me relevant site The operating performance of a hp:to-electric generalon fac,lity depends on favorable hydrological coriditcns Objects such as buildings. trees or otter wind turbines near our wind farms fray reduce wad resources due to the druphon of wnd flows Furthermore, components of our system. nth as solar panels and inverters or wind tadres, could be damaged by severe weather, etch as hailstorms. typhoons or tornadoes We generally wit be obligated to bear the expense of repairing damage to our energy systems caused by severe weather and replacement and spare parts for key components rrey be diffcut or costs/ to aceN re or may be unavailable. Linfavarade weather and atmospheric Donators could 'meat the effectmeness of our assets or reduce ter outpu beneath their rated capecty or require shutdown of key equpmert Inger:mg operaton of our assets and ability to achieve forecasted revenues and cash flows. Sustained unfavorable weather could also unexpectedly delay the installation of energy systems. vetch could result in a delay in us acquiring new projects or increase the cost of such proects 61 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/20 15/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058026 CONFIDENTIAL SONY GM_00204210 EFTA01366498