EFTA Document EFTA01367130

Amendment #4 Page 701 of 868 Ir ( Approval of Mancini statements The financial statements for the yaw ended Decanter 31.2014 and 2013 have been 'Waved and fathomed for their askance by Maregemenl and will be submitted to the Board a Directors and the General Shareholders' Meetng lot Mew approval within the terms eslabehed by law In Management s ownon said financial statements will be approved vallout modficabon 2 Operating regutson and legislabon that affect the acevibes of the electricity wdustry The main ',gleans affecting tre Company's °dry ties are the following (e) Electrical Concessions Law— In Peru the electricity sector is ruled by the Electrical Concessions Law. Decree-Law W25844. enacted on November 19, 1992. its Regulation Supreme Decree N 039-93-E14. enacted on February 25, 1993, and its amendments and edensions, sten as law W 28832, taw to Ensure the Edited Developmere a Electric Generation' Pursuant to the Electrical Concessions Act. the °rootlet/ sector is deeded into Wee main sub-sedas. each ale compere a different °dirty, elecbicty generaton, transmission arc detnbubon in accordance with sac act and the 'Law lo Ensure the Efficient Development of Elecinaty Generation% cite operator, of power generation plants and transmission systems are weed to the pompons of the Economic Operation Committee of the Natorel Interconnected System (COES-SINAC. by its Sparish acronym). with the purpose of coordnWing sad operation at a mrtmum cost preserving the safety of electric rot,/ suppy and the best usage of energy resoaces, as well as the parrirg of the SEIN development and the short.terrn market administrabon CCES-SINAC determines the pricing of the power and energy transfers between generators The main changes introduced by the Law we related to the partiopation n short-term market of astribilon companies and large free customers, ncluding distrOttors and customers, besides generation conceives. as members a COES-SINAC. modifying the structure of this organization Also, it repletes the procedure for dembuton companies to convene bidding& to ensure energy supply to the regulated market Ins law res also amended the legal framework for the electricity transmeson actwtes Promotion of brattrannt on Electildty Ganeradon Using Renewable Energy— The Legslatwe Decree N' 1002, published on May 2, 2008 and i s reg.daton, has me papoose of promoting the use of RER n ()Ina( to enhance the quality of Me a the populaton and to protect the erwronment through the nvestment promccon of electricity generation with the use of RER, which is declared of nabonal interest and pubic necessay. RER are defined as the biomass as well es the wird. solar, geothermal teal and hydraulic energies (the tatter solely when the generahon capacity is less than 200 MINI Eligtile to the provivons of said Legislative Decree are the new operations of compones using RER as primary energy. with previous encredtabon before the MEM Electricity generation via RER ergots priority in the daily dispatch performed by CCES. The production variable cost for the use a RER Well be zero The law and its regulation introarowl an auction scheme for sectncey generated with RER F-38I 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-0058658 CONFIDENTIAL SDNY_GM_00204842 EFTA01367130