EFTA01366492.pdf

Amendment #4 Page 63 of 868 fa* of ( affect cur 'Waxy to fund acqusitens ancVcr operating costs if our Sponsor or otter development companes from which we seek to acquire projects are untie to raise funds when needed or i we or they are uratte to seese adequate financing the awry to grow our pealed potato may to limed which could have a material adverse effect cn our ability to imaement our genii strategy and ultimately our business financial cond !ion resits of operations and cash flows. Projects el our Initial portfolio, and that we may acquire, will need governmental approvals andninths, Including environmental approvals and parmlls, for constmetion and operation. Any /Muni to obtain and!nonfat, netnastypermits could adversely affect our ability to operate and grow. The operation of solar, wind and hydroeecinc energy projects is hirly regclated requite various governmental approvals and permits, including environmental approvals and permits, and may be subject to the imposeon of related coeditors that vary by jurisdiction We cannot predct whether all permits required fa a grven project will be grafted or whether the condeonsassoceted with he permits will be achievable In addition many of the local governments in jurisdictions in whim we operate have enacted laws that repare us to attain cperatng permits to conduct our business Die to administrative delays certain of tins projects in these jurisdictions are operating without such mass because the local governmer4 is rot enforcing es point reqyaernert The denial Or loss of a permit essential to a prettel the imposition of 'Thereat'', cant:Stensupon renewal a Me Indeton of enforcement actions card wryest ott ability to operate a project In addition we carrot predict whether the permits will attract sagrailcall OfaccsRion or whether the permsterg process win be lengthened due to complexities legal claims or appeals Delays m the review and yenning process for a project can impair a delay our ability to zap re a preect or increase the cost such that the project is no longer attractive to us If we fail to testy the coeditors or comply with the reenacts imposed by governmental approvals and permits or the restrictions imposed by any osier statutory regulatory reguremerts, we may be subect to regulatory enforcement actor) fines, penalties Of Creational COSIS Or revOCatOn of such approvals or permits and the operation of the apple-able projects exact be adversely affected. Any failUre to procure. renew or maintain necessary author Lotions and permits could materially adversely affect he corrinuing operation of our propels or or ablly to acquire additional ferCifeCIS Laws, governmental regulations amlpolicies suppottIng renewable energy, and specifically solar, wind and hydro-Weenie energy (Including tax Incentives and food-in tariffs), could thong, at any time, including as a result ofnew politicalleadership, and such changes may materially adveraely affect our business and our growth strategy. Renewable generation assets ccrreritly benefit from various national province] state and local governmental incentives Certan of the projects in our initial portfolio and certan call right pr otects ter/ on eaerger subsidies from government autront es in Nrisclichons where such projects are located Governmental regulations and policies cold be changed to provide for new rate programs that undermine the extreme mare for both new and existing projects by chaff; ng adiddo nal non-negotiable fixed or demand charges or other fees Or reductions in the number of pro,ects slowed under net metering policies additon. irantropeted everts beyond as Control Swell as a change in law may recayre us to make improvements or other mOCISCatienS to one Or more of our projects which could nave an adverse effect on our operating resifts Cur business coed also be subject to new and burdensome interconnection processes, delays and upgrade costs a local permit and see restnctions in addition we face nsks related to potential changes in tax Laws anal may lima the benefits d Saar, wind and nycroelearic energy investmere For example cc' sdar projects in Thailand currently benefit from a 'tax holiday' granted by Thailand s Board of Investment This incentive includes an egrt-year tax holiday customs duty exempuors and a number of other non-tax incentives. There is a risk trot the tax holiday may be revoked and that the rate of income tax may be increased from the current rate of 20% In Brazil certain tax benefits 55 http://cfdocs.btogo. corn:27638/cf/dna/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0058020 CONFIDENTIAL SDNY_GM_00204204 EFTA01366492