EFTA01366667.pdf

Amendment #4 Page 238 of 868 deer nix ern commercial war of distribited gereraton Under the terms of the PPA the project sees and delvers the renewable energy gemmed to the °Snake counterpady al a ccetraaed tare for a fixed number of years (unless othenvise ternmated earlier), Ire duration of which is dictated by the type of rerewatole energy used for power generation under which the feed-in tare approval is garotted For solw power generator Ire durahon is 21 years commencing from the feed-in tariff commencement date Tre PPA ponies for the payment of a feed-in tariff rate Ire feed-in tariff rate is st.lotect to adpameat d SEDA determnes that the project has achieved cost party h e wren tre feed-in tariff fete is equal to or less than the displaced costs), at whch point. We potter is paid a tend based on te prevailing displaced cost for the remaining Oration of the PPA Under the arrangement the retake couserparly pays the renewa tie energy generator the feed in [anti rate for power eat is purchased under Ire PPA and is subsecuertlf reimtursed by Malaysia s renewable energy lux' for the amount such feed-in tariff 'precede the prevailing 'displaced costs' of such power. The 'displaced cot measure is established under Ire REA and is generally equal to IM cosi a tradtional Way would not to generate an equal amount et power The subsdzed portion of the feed•in tariff is typcaly well more than half of the total feed-in bolt h order to provide forcing for the feed-in tariff Program for renewable energy. the Malaysian government has stipulated that electricity consumers must contobae a surcharge of a certain percentage Courtney 1 6%) of each d their total eleanoty till towards the financing ci the cost to implement Malaysia, renewable energy program The funds collected nationally are deported into a renewable energy fund that is nonaged and controlled by SEDA This fund is further supported by annual national budget contetaiore as and when required tie addition to the feed-m tare( program the Malayson goverment has also launched varous programs to promote the application and dove/a:meg of green technology in Malaysia 11 2010. a fnanceig program was established to accelerate the expansion of green investments by providing easier access to financing from private and commercial financial resautons This frercing program offers a 60% guarantee of the framing amount and a rebate of 2% on the Merest a profit rate charged by the financial Inaba/tient Under this program. fisting will be provided for arty prfaeCt that satisfies the requirements for private finance initiatives and meets the green technology project coterie This framing program 4 evaded, ureil December 31. 2015 a upon reachng a toll financing approval amount 01 MYR 3 5 billion. whichever is earlier Renewable energy producers are also entitled to apply for tax incentives such as the investment tax allowance of a certain percentage of qualifying captal expenditures incurred within a period of five years. which can be set-off against 100%d statutory income for each year of assessment The investment tax allowance is men for apt:acetone until December 31. 2015 Thailand Solar and wind power projects n Thailand are Ogee for promoter (grant of oars ircenlives and guarantees) under the Invesbnent Promotion Act (1977), Pursuant to promotion pekoes amourced by the Board of Investment solar and wad power projects are eligible for tax and non-tax incentives. The tax incentives provide fa (i) an eight-year corporate inoome tax estrogen accounfirg for 100% of investment (excluding cost of land arid workng capital). (i0 an exemption of income tax ant dividends during the ircome tax 'holiday'. and (iii) an exemption of import duty an machinery The non-tax ircertnes ircluda (i) the right for foreigners to obtain work permts, (x) Pa noM of majonty-ovmed Board of Investrrert promoted protects to own land associated with the project; (ii) the right to rem, foreign currency. and (re) a policy of the government rot to pusue natonalizabcri as a lam el redress 230 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-0058195 CONFIDENTIAL SONY GM_00204379 EFTA01366667