Common use of Risks and Benefits Clause in Contracts

Risks and Benefits. This paragraph describes the Parties’ understandings of important risks and benefits relevant to this Agreement; it is not intended as a comprehensive statement of all such risks and benefits. As set forth in Paragraph 2 above, litigation over the SAFE Rule Part One and the SAFE Rule Part Two, as well as potential further federal regulatory actions, create uncertainty for Volvo Car USA regarding the GHG standards that will apply throughout the United States for Model Year 2021 through Model Year 2026 and subsequent. The outcome of this litigation or additional federal regulatory actions may result in two GHG compliance standards in the United States for the covered Model Years: requirements to comply with more stringent CA Standards in California and the Section 177 States; and less stringent SAFE Rule Part Two standards throughout the rest of the United States. This regulatory uncertainty also subjects Volvo Car USA to considerable enforcement risk. Therefore, Volvo Car USA enters into this agreement to ensure, among other reasons, that it has the ability to (i) make long-term product planning decisions and investments with confidence; (ii) satisfy market demand and production realities; and (iii) comply with regulatory requirements during this time. This Settlement Agreement offers Volvo Car USA compliance flexibility and greater certainty to plan for its nationwide fleet. The SAFE Rule Part One and SAFE Rule Part Two, and the related litigation, also entail risks that California and the Section 177 States may not achieve the pollutant reduction goals they expected to result from the CA Standards. Entry into this Settlement Agreement is consistent with those goals, including goals set out in the AB 32 Scoping Plan, and will deliver environmental benefits commensurate with those goals that may not be realized in the absence of an agreement. Each Section 177 State has made consistent judgments, reflected in the Enforcement Discretion Letters.

Risks and Benefits. This paragraph describes the Parties’ understandings of important risks and benefits relevant to this Agreement; it is not intended as a a‌ comprehensive statement of all such risks and benefits. As set forth in Paragraph 2 above, litigation over the SAFE Rule Part One and the SAFE Rule Part Two, as well as potential further federal regulatory actions, create uncertainty for Volvo Car USA BMW NA regarding the GHG standards that will apply throughout the United States for Model Year 2021 through Model Year 2026 and subsequent. The outcome of this litigation or additional federal regulatory actions may result in two GHG compliance standards in the United States for the covered Model Years: requirements to comply with more stringent CA Standards in California and the Section 177 States; and less stringent SAFE Rule Part Two standards throughout the rest of the United States. This regulatory uncertainty also subjects Volvo Car USA BMW NA to considerable enforcement risk. Therefore, Volvo Car USA BMW NA enters into this agreement to ensure, among other reasons, that it has the ability to (i) make long-term product planning decisions and investments with confidence; (ii) satisfy market demand and production realities; and (iii) comply with regulatory requirements during this time. This Settlement Agreement offers Volvo Car USA BMW NA compliance flexibility and greater certainty to plan for its nationwide fleet. The SAFE Rule Part One and SAFE Rule Part Two, and the related litigation, also entail risks that California and the Section 177 States may not achieve the pollutant reduction goals they expected to result from the CA Standards. Entry into this Settlement Agreement is consistent with those goals, including goals set out in the AB 32 Scoping Plan, and will deliver environmental benefits commensurate with those goals that may not be realized in the absence of an agreement. Each Section 177 State has made consistent judgments, reflected in the Enforcement Discretion Letters.

Risks and Benefits. This paragraph describes the Parties’ understandings of important risks and benefits relevant to this Agreement; it is not intended as a comprehensive statement of all such risks and benefits. As set forth in Paragraph 2 above, litigation over the SAFE Rule Part One and the SAFE Rule Part Two, as well as potential further federal regulatory actions, create uncertainty for Volvo Car USA VWGoA regarding the GHG standards that will apply throughout the United States for Model Year 2021 through Model Year 2026 and subsequent. The outcome of this litigation or additional federal regulatory actions may result in two GHG compliance standards in the United States for the covered Model Years: requirements to comply with more stringent CA Standards in California and the Section 177 States; and less stringent SAFE Rule Part Two standards throughout the rest of the United States. This regulatory uncertainty also subjects Volvo Car USA VWGoA to considerable enforcement risk. Therefore, Volvo Car USA VWGoA enters into this agreement to ensure, among other reasons, that it has the ability to (i) make long-term product planning decisions and investments with confidence; (ii) satisfy market demand and production realities; and (iii) comply with regulatory requirements during this time. This Settlement Agreement offers Volvo Car USA VWGoA compliance flexibility and greater certainty to plan for its nationwide fleet. The SAFE Rule Part One and SAFE Rule Part Two, and the related litigation, also entail risks that California and the Section 177 States may not achieve the pollutant reduction goals they expected to result from the CA Standards. Entry into this Settlement Agreement is consistent with those goals, including goals set out in the AB 32 Scoping Plan, and will deliver environmental benefits commensurate with those goals that may not be realized in the absence of an agreement. Each Section 177 State has made consistent judgments, reflected in the Enforcement Discretion Letters.

Risks and Benefits. This paragraph describes the Parties’ understandings of important risks and benefits relevant to this Agreement; it is not intended as a comprehensive statement of all such risks and benefits. As set forth in Paragraph 2 above, litigation over the SAFE Rule Part One and the SAFE Rule Part Two, as well as potential further federal regulatory actions, create uncertainty for Volvo Car USA AHM regarding the GHG standards that will apply throughout the United States for Model Year 2021 through Model Year 2026 and subsequent. The outcome of this litigation or additional federal regulatory actions may result in two GHG compliance standards in the United States for the covered Model Years: requirements to comply with more stringent CA Standards in California and the Section 177 States; and less stringent SAFE Rule Part Two standards throughout the rest of the United States. This regulatory uncertainty also subjects Volvo Car USA AHM to considerable enforcement risk. Therefore, Volvo Car USA AHM enters into this agreement to to‌ ensure, among other reasons, that it has the ability to (i) make long-term product planning decisions and investments with confidence; (ii) satisfy market demand and production realities; and (iii) comply with regulatory requirements during this time. This Settlement Agreement offers Volvo Car USA AHM compliance flexibility and greater certainty to plan for its nationwide fleet. The SAFE Rule Part One and SAFE Rule Part Two, and the related litigation, also entail risks that California and the Section 177 States may not achieve the pollutant reduction goals they expected to result from the CA Standards. Entry into this Settlement Agreement is consistent with those goals, including goals set out in the AB 32 Scoping Plan, and will deliver environmental benefits commensurate with those goals that may not be realized in the absence of an agreement. Each Section 177 State has made consistent judgments, reflected in the Enforcement Discretion Letters.