EFTA01366500.pdf

Amendment :14 Page 71 of 868 alit, nt. ni. Operation ofpower generation facilities Involves significant risks and hazards that could have a material adverse effect on our business. financial condition, results of operations and cash flows. We may not have adequate Insurance to cover these dais and ',maids. The ongoing operate(' of our facilites evolves risks I hat include the breakdown or !afore of equipment or processes or performance below expected levels of Out:park efficiency due to wear arid tear latent defect design error cc operator error or force majeure events among other things Operation of our facilities also involves risks that we will be unable to transport our product to our customers in an efficient manner ere to a lack of transmsson <apace/ Unplanned outages of generating units including extensions of scheduled outages, occur from Ire to time and are an inherent risk of ou' business Unplanned outages typically ncrease our operation and maintenance expenses and may reduce our revenues as a rests of generabng and selling less power or require us to nos significant costs in connection with obtaining replacement power from third panes in the open market to satisfy tou forward power sales obligations Cur natality to operate as erergy assets efficiently, manage capital expenditures and costs and generate earnngs and cash flows from our asset -based businesses cold have a mitenal adverse elect On Our business. financial corditon, resultscif operations and cash flows wife we maintain insurance. ottain warranties from vendors and oblgate contractors to rivet certain performance levels, the proceeds of such insurance, warrant es or performance guarantees may rot cover our lost revenues increased expenses or liquidated damages perinea* should we experience equipment breakdown or nonperformance by contractors or vendors Flower gene-ratan involves hazard:us actwites. including delivering eleanoty to transmission and drstrouton systems In addition to natural risks such as earthquake. drought flood loaning, hurricane typhoon maelstrom and windstorm other hazards such as fire, structural collapse and machinery failure are inherent risks in our operatons These and other hazards can cause significant personal mury or loss of life severe damage to and destnaction of property, plant and equiPment and cortamnaton of or damage to the environment and suspension of operations The occurrence of arty ore of these everts may result in our being named as a defendant rn lawsuts asserting claims for substantial damages including for ermronmentai zizanup costs. personal nyly and property damage and fires and/or penaltes Brazil, for example, has estabished strict lability for environmental and other damages retaed to the operation of electric power plants Any damages related to these occurrences mud negatively impact our reugalon We mairdain an amount of insurance protection that we consider adequate but we cannot provide any assurance that our insurance will b0 saficent or effective UXICr all circumstances and against ail hazards or lied, t es to which we may be subject Furthermore. OW insurance coverage is stabled to dedUCDties, caps exclusions and otter Itmtatons A loss for which we are not Tut/ insured paid have a material adverse effect on our business, financial condition results of operations or cash lbws Further doe to rising insurance costs and changes in the insurarce markets we cannot provide any assurance that our insteance coverage will coil, nue to De available at 0r or at rates or on terms similar t0 those presently available Any losses not covered by eiSurance could have a material adverse` effect on our buoness franca/ coral on, results of operations and cash flows Our business is staged to substantial governmental regulation and may be adversely effected by changes in taws or regulations, as well as liability under, or any allure inability to comply with. existing or future regulations or other legal mcluirements. Cur business 6 SLOyed to extensive national, provincial, state and local taws and regulations in the countries in whch we operate Compliance with the requrements under these venous regulatory regimes may cause us t0 incur signgicant costs and failure t0 comply with won requrements could result in the shutdown of the non- complynofaulty or, the imposition of liens fines ard/or civil or um nal liability In addtion new regulatory guidelines for renewable proteCs that impose staoI ty dependability or other requrements may lead to 63 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-0058028 CONFIDENTIAL SONY GM_00204212 EFTA01366500