EFTA Document EFTA01367253

Amendment #4 Page 824 of 868 lehir. ni • 20.2 Land usufruct and lease agreements Ths Company entered into land usufruct agreements with Ganaderia El Unto. S. A and Corpora:26n Ganadera Irterarrencona. S A. Nicaraguan erttes who allow the Company to develop tte Project in New farms, with a total area of appdoomertely Z 200 hectares The te dthe usufruct agreements is for 20 years starting when the Prqed began corn ere operations (December 1, 2012) As compensation, Ganaderla El Unb rm in wit recent U4 honer of 0 75% of energy sales or an anal amount of u$S55.00). which wit reran. 3% on an annul byes Corporation Canada; interarnencana will reoewe 2 00% of energy sates At utfity and tax expenses over the Isms are assumed by Solo in addition the Company had to pay a nonrefundable amount of USI800.000 to Ganaderla El Lena, as a security deposit The Compaq recognized such payment as an intangible asset, vMch is amortized in 20 years (rape 11) Ire Company also signed lease agreements with Ganaderla El Omen and Corporao6n Garedera Intemmericana over the farms for a penal d 10 years that wit commerce upon finalization Otte land usufrud ageernents The red charge for Ganaderla El Linen's farms wi be the hgher of 0.75% d energy sales or an annual amourt or US$55 000, wtrch will increase be 3% on an annual basis The rent charge fa Carpe tern Genedlea Interamencana's farms will be equrialert to 2% d energy safes 203 %Ind from construction and maintenance The Company entered into an Engneenng Procurement and anstnxton Agreement with Gamete Edits, S L througb which Garnesa designed. &greeted procured. installed and constructed the wend farm d 44 MW as a turnkey project including the constnuction and installation of 22 wed tat:ries. The total contract price amounted to 15478,748,808 and the Company has pad the total amount to Garresa as of December 31, 2014 (2013 115878,242.322 with a reman ng balance of USS504.226 - Note 14), which is included under the item dapperly. plant and equipment in the statement of financial position. Tie Company and Gamesa also entered Imo an Operation arid Mairtenance Agreement on December 31,2011 to enrage that the Project we operate as technically designed ate its construction Under this agreement, Gansu guarantees that the Project will meet an average availability on the turbine equipment of no less than 97% beginnng on tre second annwersary of the Projects carvinsioning completion (April 1 2015) The maintenance service tegen n April 2013 and the amual fee is equivalent to US$60,795 per wind lutine, for total of USS1 337,496 a year, which includes the oat of corrective maintenance 204 ConOngendos In January 2014 Eob was notified by the Muntipelihr of Rwas Ncaragua, of a tax assessment of properly taxes on land and equipmert corresponding to the 2013 fecal period The property taxes claimed by the Municipality amounts teetotal of US$137,321 Edo has responded Wet it should not beer those taxes because it does rot own the lards (Me lands on which the wind farm operates is leased) and its equipment does rot fall under the 'fixtures' denten of tre tax law on which the property taxes are levied On May 28, 2014 Fob hied a lawsuit against the Municipality of Rivet:etre Contentious ACIIIIIIStf &We Cott This Process IS expected to take between ore a Mo years Infra meantime Ire Phricipaley Is precluded from enlacing the tax assessment because Eob rendered a guarantee of USS14,739 as pan d the contentious process. The Company, alter consultation wit' its legal advisors, considers Mat Were are strong arguments to revert the tax assessment claimed and that any ultimate payment is rot probable Therefore, as of December 31, 2014 Me financial statements do not contain a provision for this matter. F-504 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-0058781 CONFIDENTIAL SDNY_GM_00204965 EFTA01367253