Document:

EX-10.3

 Exhibit 10.3 

PURCHASE RIGHTS AGREEMENT 

BY AND AMONG 
 PATTERN
ENERGY GROUP LP, 
 PATTERN ENERGY GROUP INC. 

AND 
 (SOLELY WITH
RESPECT TO ARTICLE IV) 
 PATTERN ENERGY GROUP HOLDINGS LP 

AND 
 PATTERN ENERGY GP
LLC 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 Article I. DEFINITIONS
	  	 	1	  
			
	 Section 1.1.
	 	Definitions	  	 	1	  
		
	 Article II. GULF WIND INTEREST PURCHASE OPTION
	  	 	4	  
			
	 Section 2.1.
	 	Option to Purchase the Gulf Wind Interest	  	 	4	  
	 Section 2.2.
	 	Procedures	  	 	5	  
		
	 Article III. PROJECT PURCHASE RIGHT OF FIRST OFFER
	  	 	7	  
			
	 Section 3.1.
	 	Project Purchase Right of First Offer	  	 	7	  
	 Section 3.2.
	 	Procedures for Rights of First Offer	  	 	7	  
	 Section 3.3.
	 	Term of the Project Purchase Right of First Offer	  	 	8	  
		
	 Article IV. PEG LP PURCHASE RIGHT OF FIRST OFFER
	  	 	8	  
			
	 Section 4.1.
	 	PEG LP Purchase Right of First Offer	  	 	8	  
	 Section 4.2.
	 	Procedures for Rights of First Offer	  	 	9	  
	 Section 4.3.
	 	Term of the PEG LP Purchase Right of First Offer	  	 	10	  
		
	 Article V. MISCELLANEOUS
	  	 	10	  
			
	 Section 5.1.
	 	Choice of Law; Submission To Jurisdiction; Waiver of Jury Trial	  	 	10	  
	 Section 5.2.
	 	Enforcement	  	 	10	  
	 Section 5.3.
	 	Notice	  	 	10	  
	 Section 5.4.
	 	Entire Agreement	  	 	11	  
	 Section 5.5.
	 	Waiver; Effect of Waiver or Consent	  	 	11	  
	 Section 5.6.
	 	Amendment or Modification	  	 	11	  
	 Section 5.7.
	 	Assignment	  	 	11	  
	 Section 5.8.
	 	Counterparts	  	 	11	  
	 Section 5.9.
	 	Severability	  	 	11	  
	 Section 5.10.
	 	Rules of Construction	  	 	12	  
	 Section 5.11.
	 	Further Assurances	  	 	12	  
	 Section 5.12.
	 	Laws and Regulations	  	 	12	  
	 Section 5.13.
	 	No Third Party Beneficiaries	  	 	12	  

  
 i 

 PURCHASE RIGHTS AGREEMENT 

THIS PURCHASE RIGHTS AGREEMENT is entered into on, and effective as of, the Closing Date (as defined herein), among Pattern Energy Group LP, a
Delaware limited partnership (“PEG LP”), Pattern Energy Group Inc., a Delaware corporation (“PEG Inc.”) and, solely with respect to Article IV, Pattern Energy Group Holdings LP, a Delaware limited
partnership, and Pattern Energy GP LLC, a Delaware limited liability company (together, the “PEG LP Partners”). 
 R E C I T
A L S: 
 1. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article II, with
respect PEG Inc.’s Gulf Wind Purchase Right (as defined herein). 
 2. The Parties desire by their execution of this Agreement to evidence their
understanding, as more fully set forth in Article III, with respect to PEG Inc.’s right of first offer relating to power projects sold by PEG LP. 

3. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article IV, with respect to PEG
Inc.’s right of first offer relating to a sale of PEG LP or all or substantially all of PEG LP’s assets. 
 In consideration of
the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE I. 
 DEFINITIONS

 Section 1.1. Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth
below: 
 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries Controls, is Controlled by or is under common Control with, the Person in question. 
 “Agreement” means
this Purchase Rights Agreement, as it may be amended, modified, or supplemented from time to time in accordance with Section 5.6 hereof. 

“Applicable Law” means any applicable constitutional provision, statute, act, code, law, regulation, rule, ordinance, Order,
decree, ruling, proclamation, resolution, judgment, decision, declaration, or interpretative or advisory opinion or letter, of a Governmental Authority having valid jurisdiction. 

“Business Day” means a day other than a Saturday, Sunday or any other day on which commercial banks in Toronto, Ontario or
New York, NY are authorized or required by Applicable Law to close. Any event the scheduled occurrence of which would fall on a day that is not a Business Day shall be deferred until the next succeeding Business Day. 

 “Closing Date” means the date of the closing of the initial public offering of
Class A common stock of PEG Inc. 
 “Construction-Ready Project” means any Project that has: (i) commenced
construction as evidenced by a PEG LP Entity having (A) closed the financing for such construction or (B) issued a notice to proceed in accordance with the applicable construction agreement; or (ii) in PEG Inc.‘s reasonable
determination, reached the status of being capable of commencing construction, which reasonable determination may be based upon, among other things, whether or not (x) there are requisite material project agreements in full force and effect
(including a long-term power sales agreement and an interconnection agreement), (y) all requisite real estate rights and permits for construction are in full force and effect and (z) substantially negotiated equipment supply and other
construction agreements are in full force and effect and sufficient to achieve and sustain commercial operations if performed in accordance with their terms; and, in each case of the foregoing (i) and (ii), there has been no violation of,
default under or event that with or without notice or the passage of time or otherwise would constitute a violation of or an event of default under any such project agreements, real estate rights, permits or construction agreements. 

“Control” or “Controlled” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Equity Interests” means all shares, capital stock, partnership or limited liability company interests, membership interests,
units, participations, distribution rights or similar equity interests issued by any Person, however designated. 
 “Final Gulf Wind
Purchase Right Notice” has the meaning given such term in Section 2.2(a). 
 “First Rights PEG LP Offer”
has the meaning given such term in Section 4.2(b). 
 “First Rights Project Declination” has the meaning given
such term in Section 3.2(b). 
 “First Rights Project Offer” has the meaning given such term in
Section 3.2(b). 
 “Governmental Authority” means: 

 

	 	(i)	any government, whether national, federal, provincial, state, territorial, municipal or local (whether administrative, legislative, executive or otherwise); 

 

	 	(ii)	any agency, authority, ministry, department, regulatory body, court, central bank, bureau, board or other instrumentality having legislative, judicial, taxing, regulatory, prosecutorial or administrative powers or
functions of, or pertaining to, government; 

	 	(iii)	any court, commission, individual, arbitrator, arbitration panel or other body having adjudicative, regulatory, judicial, quasi-judicial, administrative or similar functions; and 

 

	 	(iv)	any other body or entity created under the authority of or otherwise subject to the jurisdiction of any of the foregoing, including any stock or other securities exchange or professional association. 

“Gulf Wind FMV Objection Notice” has the meaning given such term in Section 2.2(a). 

“Gulf Wind Interest” means the Class B Units in Pattern Gulf Wind Holdings LLC directly or indirectly held by any PEG LP
Entity (which, immediately after the completion of PEG Inc.’s initial public offering, will amount to 40% of the issued and outstanding Class B Units of Pattern Gulf Wind Holdings LLC) and any successor Equity Interests (including as a result
of any recapitalization, conversion, reorganization, merger or similar transaction). 
 “Gulf Wind Purchase Right” has the
meaning given such term in Section 2.1(a). 
 “Gulf Wind Purchase Right Notice” has the meaning given such term
in Section 2.2(a). 
 “Gulf Wind Purchase Right Period” means the period commencing on the first Business Day
following the first anniversary of the Closing Date and ending on the first Business Day following the second anniversary of the Closing Date. 

“Operational Project” means any Project that has: (i) achieved commercial operations in accordance with the terms of its
applicable construction agreement, power sales agreement or interconnection agreement, as the case may be; and (ii) generated operating revenue from the sale of electricity or transmission services under its applicable power sales agreement or
transmission services agreement. 
 “Order” means any order, directive, judgment, decree, injunction, decision, ruling,
award or writ of any Governmental Authority. 
 “Parties” means the parties to this Agreement and their successors and
permitted assigns. 
 “PEG Inc.” is defined in the introduction to this Agreement. 

“PEG Inc. Entities” means PEG Inc. and any Person Controlled by such entity. 

“PEG LP” is defined in the introduction to this Agreement. 

“PEG LP Entities” means PEG LP and its Subsidiaries, and any other Person Controlled, directly or indirectly, by PEG LP, in
each case, other than the PEG Inc. Entities. 
 “PEG LP Offer Price” has the meaning given such term in
Section 4.2(b). 
 “PEG LP Partners” is defined in the introduction to this Agreement. 

“PEG LP Transfer Notice” has the meaning given such term in Section 4.2(a). 

 “Person” means an individual, corporation, partnership, joint venture, trust,
limited liability company, unlimited liability company, unincorporated organization or any other entity. 
 “Project” has
the meaning given such term in Section 3.1. 
 “Project Offer Price” has the meaning given such term in
Section 3.2(b). 
 “Project Transfer Notice” has the meaning given such term in Section 3.2(a).

 “Second Gulf Wind Purchase Right Notice” has the meaning given such term in Section 2.2(a). 

“Subject Project Interest” has the meaning given such term in Section 3.2(a). 

“Subsidiary” or “Subsidiaries” means, with respect to any Person, any corporation, limited liability
company, unlimited liability company, joint venture or partnership of which such Person (a) beneficially owns, either directly or indirectly, fifty percent (50%) or more of (i) the total combined voting power of all classes of voting
securities of such entity, (ii) the total combined Equity Interests, or (iii) the capital or profit interests, in the case of a partnership; or (b) otherwise has the power to vote, either directly or indirectly, sufficient securities
to elect a majority of the board of directors or similar governing body. 
 “Third Party Advisor” means an investment
banking firm or other expert advisor, in each case, mutually agreed upon by PEG Inc. and PEG LP. 
 “Transfer” means any
direct or indirect transfer, assignment, sale or other disposition, whether through the direct or indirect transfer, assignment, sale or other disposition of Equity Interests or assets, by merger or otherwise; provided, however, that
such term shall not include: (a) transfers, assignments, sales or other dispositions from a PEG LP Entity to another PEG LP Entity; (b) grants of security interests in or mortgages or liens in favor of a bona fide third party lender in the
business of providing debt financing; or (c) transfers, assignments, sales or other dispositions as part of a tax equity financing transaction, such as sale-leaseback transactions or partnership flip transactions (excluding, for the avoidance
of doubt, any transfer of the interest retained by the PEG LP Entity that entered into such tax equity financing). 

“Transferee” means the recipient of a Transfer. 

ARTICLE II. 
 GULF WIND
INTEREST PURCHASE OPTION 
 Section 2.1. Option to Purchase the Gulf Wind Interest. 

(a) PEG LP hereby grants to PEG Inc. the unconditional right and option to purchase for fair market value (as determined in accordance with
this Agreement) all of the Gulf Wind Interest (the “Gulf Wind Purchase Right”), exercisable by PEG Inc. in its sole discretion at any time during the Gulf Wind Purchase Right Period, and will take all actions necessary to cause the
Gulf Wind Purchase Right to be exercisable in accordance with this Article II, including by causing each PEG LP Entity to take any actions necessary to facilitate and enforce such exercise 

 
and to consummate the transactions contemplated by this Article II. For the avoidance of doubt, if a Gulf Wind Purchase Right Notice (as defined below) is provided during the Gulf Wind
Purchase Right Period, the Gulf Wind Purchase Right shall survive until the transfer of the Gulf Wind Interest pursuant to this Article II is consummated (or earlier terminated in accordance with this Article II below). 

(b) The transfer of the Gulf Wind Interest in connection with the exercise of the Gulf Wind Purchase Right shall be accomplished pursuant to
the transfer of all of the Class B Units or other Equity Interests in Pattern Gulf Wind Holdings LLC directly or indirectly held by the PEG LP Entities, or in such other manner as PEG Inc. and PEG LP shall reasonably agree, taking into account tax
efficiencies, third party consents and other reasonable considerations. 
 Section 2.2. Procedures. 

(a) At any time during the Gulf Wind Purchase Right Period, PEG Inc. may provide written notice to PEG LP of its exercise of the Gulf Wind
Purchase Right (a “Gulf Wind Purchase Right Notice”), which notice shall include the fair market value it proposes to pay for the Gulf Wind Interest, and the other material economic terms of the purchase. Following delivery of the
Gulf Wind Purchase Right Notice, PEG LP shall have 10 Business Days to reasonably object by written notice to PEG Inc. to the fair market value or any other material economic terms set forth in the Gulf Wind Purchase Right Notice (a “Gulf
Wind FMV Objection Notice”), which Gulf Wind FMV Objection Notice shall include PEG LP’s alternative proposal for any fair market value or other material economic terms. If PEG LP does not so deliver a Gulf Wind FMV Objection Notice
within such 10 Business Day period, PEG LP shall no longer have a right to object to the terms of the Gulf Wind Purchase Right Notice and shall be deemed to have irrevocably agreed to the fair market value and other terms set forth in the Gulf Wind
Purchase Right Notice; and such Gulf Wind Purchase Right Notice shall be deemed to be the Final Gulf Wind Purchase Right Notice (as defined below). Following any valid delivery within the period specified above of a Gulf Wind FMV Objection Notice,
PEG LP and PEG Inc. shall negotiate in good faith to resolve any objections set forth in the Gulf Wind FMV Objection Notice. If PEG Inc. and PEG LP are unable to agree on the fair market value of the Gulf Wind Interest and/or the other material
economic terms objected to in a validly delivered Gulf Wind FMV Objection Notice within 30 calendar days of such delivery, PEG Inc. and PEG LP shall, upon written notice from either PEG Inc. or PEG LP to the other, engage a Third Party Advisor to
determine the fair market value of the Gulf Wind Interest and/or the other material economic terms on which PEG Inc. and PEG LP are unable to agree. In determining the fair market value of the Gulf Wind Interest and/or the other material economic
terms on which the Gulf Wind Interest is to be sold, the Third Party Advisor shall be provided with access to the Gulf Wind Purchase Right Notice, Gulf Wind FMV Objection Notice, including the proposed sale and purchase values and terms for the
offer submitted by PEG Inc. and PEG LP, respectively, and to all information prepared by or on behalf of PEG Inc. and PEG LP with respect to the Gulf Wind Interest and reasonably requested by the Third Party Advisor. The Third Party Advisor will
determine the fair market value of the Gulf Wind Interest and/or the other material economic terms on which PEG Inc. and PEG LP are unable to agree within 30 calendar days of its engagement. Upon receipt of the Third Party Advisor’s final
determination, PEG Inc. will have the option, but not the obligation, to purchase the Gulf Wind Interest for the fair market value and on the other material economic terms determined by the Third Party Advisor (and, if

 
applicable, on other terms set forth in the Gulf Wind Purchase Right Notice for which no objection was set forth in a validly delivered Gulf Wind FMV Objection Notice), exercisable by delivery of
written notice to PEG LP within 10 Business Days of such determination (a “Second Gulf Wind Purchase Right Notice”) setting forth such election and the determined fair market value and other material economic terms applicable to the
Gulf Wind Purchase Right. Each of PEG Inc. and PEG LP will pay fifty percent (50%) of the fees and expenses of any Third Party Advisor engaged by PEG Inc. and PEG LP pursuant to this Section 2.2(a). The “Final Gulf Wind
Purchase Right Notice” shall mean: (i) the Gulf Wind Purchase Right Notice if PEG LP does not deliver a Gulf Wind FMV Objection Notice in accordance with this Section 2.2(a) or (ii) the Second Gulf Wind Purchase Right
Notice if PEG LP delivers a Gulf Wind FMV Objection Notice in accordance with this Section 2.2(a). 
 (b) If PEG Inc. delivers a
Final Gulf Wind Purchase Right Notice, PEG LP shall be obligated to sell the Gulf Wind Interest to PEG Inc. and PEG Inc. shall be obligated to purchase the Gulf Wind Interest from PEG LP at the fair market value and on the other economic terms set
forth in the Final Gulf Wind Purchase Right Notice, as well as on the following terms and conditions (which shall be further documented and set forth in a purchase and sale agreement that shall be entered into by the Parties): 

(i) PEG Inc. will deliver to PEG LP the cash purchase price specified in the Final Gulf Wind Purchase Right Notice and PEG LP
will deliver to PEG Inc. the Gulf Wind Interest (together with reasonable evidence and instruments of transfer with respect thereto) within 120 days of PEG Inc.“s delivery of a Final Gulf Wind Purchase Right Notice (unless such period is
otherwise extended pursuant to Section 2.2(b)(iii)); 
 (ii) PEG LP will provide customary representations and
warranties with respect to title to the Gulf Wind Interest being free and clear of liens and any third party rights, valid conveyance, non-contravention, valid existence and due authorization, execution and authority, and any other such matters as
PEG Inc. may reasonably request, with customary indemnification and survival; and 
 (iii) if the closing of the acquisition
of the Gulf Wind Interest shall not have been consummated within 120 days following PEG Inc.’s delivery of a Final Gulf Wind Purchase Right Notice, either PEG LP or PEG Inc. shall be entitled to terminate any obligation to sell or purchase, as
applicable, the Gulf Wind Interest under this Article II and the related purchase and sale agreement, and upon such termination neither PEG LP nor PEG Inc. shall have any obligation to sell or purchase the Gulf Wind Interest pursuant thereto;
provided that if a Party’s breach of this Article II or the related purchase and sale agreement has resulted in the failure of the closing to occur by such date, such Party shall not be entitled to so terminate its obligation to
sell or purchase, as applicable, the Gulf Wind Interest under this Article II or the related purchase and sale agreement; provided further that PEG Inc. may extend the period for closing under such purchase and sale agreement
for a period not to exceed an additional 120 days (unless the Parties mutually agree in writing to an extension of more than 120 days) if PEG Inc. is not in breach of such purchase and sale agreement and is continuing to use reasonable efforts to
work toward a closing of such purchase and sale agreement. 

 (c) PEG LP shall not, and shall cause the PEG LP Entities not to, make any Transfers with respect
to the Gulf Wind Interest from the date hereof through the later of (i) the termination of the Gulf Wind Purchase Right Period and (ii) the termination of any purchase and sale agreement entered into pursuant to Section 2.2(b)
prior to the expiration of the Gulf Wind Purchase Right Period, it being agreed and understood that Transfers by the PEG LP Entities to PEG Inc. shall otherwise be made in accordance with the other provisions of this Article II. 

ARTICLE III. 
 PROJECT PURCHASE
RIGHT OF FIRST OFFER 
 Section 3.1. Project Purchase Right of First Offer. For the term set forth in
Section 3.3, PEG LP hereby grants PEG Inc. a right of first offer on any proposed Transfer by any PEG LP Entity of all or any portion of such PEG LP Entity’s ownership interest in any power generation or transmission facility or
project now or hereafter owned in whole or in part by any PEG LP Entity in any stage, including in development, construction or commercial operation (each a “Project”), in accordance with Section 3.2. PEG LP will take
all actions necessary to cause such right of first offer to be exercisable in accordance with this Article III, including by causing each PEG LP Entity to take any actions necessary to facilitate and enforce such exercise and to consummate
the transactions contemplated by this Article III. 
 Section 3.2. Procedures for Rights of First Offer. 

(a) In the event that any PEG LP Entity proposes to Transfer all or any portion of its ownership interest in any Project, PEG LP shall give PEG
Inc. written notice within a commercially reasonable amount of time setting forth the details of the proposed Transfer, including a description of the Project (including the mega-wattage, stage of development or construction, material
counterparties, details of the project contracts and other material information with respect to the Project that an acquiror thereof would reasonably be anticipated to request in order to reasonably diligence and assess such Project), the interest
to be Transferred (the “Subject Project Interest”) and any other material terms of the proposed Transfer reasonably known or anticipated by PEG LP (a “Project Transfer Notice”). 

(b) Within 30 calendar days (or 60 calendar days in the event that at the relevant time the chief executive officer of PEG LP is not an
employee of PEG Inc.) after delivery of a Project Transfer Notice, PEG Inc. shall either: (i) deliver a written offer to PEG LP to purchase the Subject Project Interest setting forth PEG Inc.’s offer price (a “Project Offer
Price”) and other material terms and conditions on which PEG Inc. proposes to purchase such Subject Project Interest (a “First Rights Project Offer”) or (ii) deliver a written notice to PEG LP that PEG Inc. will not
make a First Rights Project Offer in response to the Project Transfer Notice (a “First Rights Project Declination”). Unless a First Rights Project Offer is rejected pursuant to written notice from PEG LP delivered to PEG Inc. within
14 calendar days of PEG Inc.’s delivery of a First Rights Project Offer, such First Rights Project Offer shall be deemed to have been accepted by PEG LP, and PEG Inc. shall have the right to acquire the Subject Project Interest, and PEG LP
shall transfer the Subject Project Interest to PEG Inc., on the terms set forth in First Rights Project Offer, and subject to documentation reasonably agreed between the parties. 

 (c) In the event that PEG Inc. delivers a First Rights Project Declination as provided in
Section 3.2(b) above, or PEG LP validly rejects a First Rights Project Offer as provided in Section 3.2(b) above, PEG LP shall not be restricted from Transfering the applicable Subject Project Interest to any Person within
nine months of such delivery or rejection (as applicable); provided, however, that in the event that PEG Inc. has previously delivered a First Rights Project Offer in respect of the Subject Project Interest which offer was rejected,
PEG LP shall only be permitted to Transfer the Subject Project Interest to a party other than PEG Inc. during such nine month period at a price greater than or equal to 105% of the applicable Project Offer Price and on other terms and conditions
that are not materially less favorable to PEG LP than the terms and conditions set forth in any applicable First Rights Project Offer; provided, further, that PEG LP may not provide any material information with respect to the
applicable Subject Project Interest to any actual or potential Transferee of such Subject Project Interest that was not provided to PEG Inc. together with the Project Transfer Notice. If PEG LP does not so consummate the Transfer of the Subject
Project Interest within such nine month period, the terms of this Section 3.2 shall apply anew with respect to any Transfer of such Subject Project Interest. 

Section 3.3. Term of the Project Purchase Right of First Offer. Section 3.1 and Section 3.2, including the
obligations and rights of PEG LP and PEG Inc. thereunder, shall survive for an initial term of five-years after the Closing Date, and shall automatically renew for successive five-year terms unless PEG LP or PEG Inc. provide written notice of
termination to the other not more than 120 calendar days and no less than 90 calendar days prior to the expiration of the then current term, in which case, Section 3.1 and Section 3.2 (and such obligations and rights) shall
terminate and expire at the end of the then current term; provided, that PEG LP shall have the right to terminate Section 3.1 and Section 3.2 upon written notice delivered to PEG Inc. at any time within 90 calendar
days following the third Transfer of an Operational Project or Construction-Ready Project (other than with respect to an immaterial portion of such project) to Persons other than Affiliates of PEG LP or PEG Inc. following PEG Inc.’s delivery to
PEG LP of three (3) First Rights Project Declinations in accordance with Section 3.2 with respect to each such Operational Project or Construction-Ready Project (for the avoidance of doubt, any such project must have been an
Operational Project or Construction-Ready Project when the related First Rights Project Offer was delivered to PEG Inc.); provided, further, that notwithstanding any termination or expiration of Section 3.1 and
Section 3.2, if any First Rights Project Offer shall have been delivered prior to such termination or expiration, the obligations and rights of the Parties with respect to the Subject Project Interest subject thereto shall survive until
the applicable terms of Section 3.2 with respect thereto have been complied with and performed in full. 
 ARTICLE IV. 

PEG LP PURCHASE RIGHT OF FIRST OFFER 

Section 4.1. PEG LP Purchase Right of First Offer. For the term set forth in Section 4.3, PEG LP and the PEG LP
Partners hereby grant PEG Inc. a right of first offer on any proposed Transfer of any material portion of the Equity Interests or all or substantially all of the assets of PEG LP in accordance with Section 4.2. PEG LP and the PEG LP
Partners will take all actions necessary to cause such right of first offer to be exercisable in accordance with this Article IV, including by causing each PEG LP Entity to take any actions necessary to facilitate and enforce such exercise
and to consummate the transactions contemplated by this Article IV. 

 The Parties will reasonably cooperate in determining the scope of any proposed Transfer that PEG LP and the PEG
LP Partners consider to be an immaterial portion of Equity Interests of PEG LP with a view of not circumventing the purpose of this Article IV. 

Section 4.2. Procedures for Rights of First Offer. 

(a) In the event that the PEG LP Partners or PEG LP propose to Transfer any material portion of the Equity Interests or all or substantially
all of the assets of PEG LP, PEG LP and the PEG LP Partners shall give PEG Inc. written notice setting forth the details of the proposed Transfer, including a description of PEG LP’s assets (including, with respect to each of PEG LP’s
Projects, the mega-wattage, stage of development or construction, material counterparties, details of any project contracts and other material information with respect to PEG LP and the Projects that an acquiror thereof would reasonably be
anticipated to request in order to reasonably diligence and assess PEG LP and such Projects), the Equity Interests or assets to be Transferred (in each case, the “PEG LP Interests”) and any other material terms of the proposed
Transfer reasonably known or anticipated by PEG LP or the PEG LP Partners (a “PEG LP Transfer Notice”). 
 (b) Within 45
calendar days after delivery of a PEG LP Transfer Notice, PEG Inc. shall either: (i) deliver a written offer to PEG LP and the PEG LP Partners to purchase the PEG LP Interests setting forth PEG Inc.’s offer price (a “PEG LP Offer
Price”) and other material terms and conditions on which PEG Inc. proposes to purchase the PEG LP Interests (a “First Rights PEG LP Offer”) or (ii) deliver a written notice to PEG LP that PEG Inc. will not make a First
Rights PEG LP Offer in response to the PEG LP Transfer Notice (a “First Rights PEG LP Declination”). Unless a First Rights PEG LP Offer is rejected pursuant to written notice from PEG LP delivered to PEG Inc. within 30 calendar days
of PEG Inc.’s delivery of a First Rights PEG LP Offer, such First Rights PEG LP Offer shall be deemed to have been accepted by PEG LP and the PEG LP Partners, and PEG Inc. shall have the right to acquire the PEG LP Interests, and PEG LP and the
PEG LP Partners shall transfer the PEG LP Interests to PEG Inc., on the terms set forth in First Rights PEG LP Offer, and subject to documentation reasonably agreed between the parties. 

(c) In the event that PEG Inc. delivers a First Rights PEG LP Declination as provided in Section 4.2(b) above, or PEG LP validly
rejects a First Rights PEG LP Offer as provided in Section 4.2(b) above, PEG LP and the PEG LP Partners shall be free to Transfer the PEG LP Interests to any Person within nine months of such delivery or rejection (as applicable);
provided, however, that in the event that PEG Inc. had previously delivered a First Rights PEG LP Offer that was rejected, PEG LP and the PEG LP Partners shall only be permitted to Transfer the PEG LP Interests to a party other than
PEG Inc. during such nine month period at a price greater than or equal to 105% of the applicable PEG LP Offer Price and on other terms and conditions that are not materially less favorable to PEG LP and the PEG LP Partners than the terms and
conditions set forth in any applicable First Rights PEG LP Offer; provided, further, that PEG LP and the PEG LP Partners may not provide any material information with respect to PEG LP, its assets or the PEG LP Interests to any actual
or potential Transferee of the PEG LP Interests that was not provided to PEG Inc. together with the PEG LP Transfer Notice. If PEG LP does not so consummate the Transfer of the PEG LP Interests within such nine month period, the terms of this
Section 4.2 shall apply anew with respect to any Transfer of the PEG LP Interests. 

 Section 4.3. Term of the PEG LP Purchase Right of First Offer.
Section 4.1 and Section 4.2, including the obligations and rights of PEG LP, the PEG LP Partners and PEG Inc. thereunder, shall survive until the earlier of: (a) the acquisition of the PEG LP Interests by PEG Inc.
pursuant to Section 4.1 and Section 4.2; and (b) the termination of the rights and obligations in Section 3.1 and Section 3.2 pursuant to Section 3.3. 

ARTICLE V. 
 MISCELLANEOUS

 Section 5.1. Choice of Law; Submission To Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and
construed and interpreted in accordance with the Laws of the State of New York, excluding any conflict-of-laws rule or principle that might refer the governance or the construction of this Agreement to the law of another jurisdiction irrespective of
the choice of laws principles. Except as may otherwise expressly be set forth in any purchase and sale agreement entered into between or among the Parties or their Affiliates in connection with the exercise of the purchase rights set forth in
Article II, Article III and Article IV, and subject to Section 5.2, each of the Parties hereby irrevocably submits to the exclusive jurisdiction of any state or federal court sitting in New York, New York in
connection with any claim, suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby or any dealings between them relating to the subject matter of this Agreement and the relationship that is
being established. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM, SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED. 

Section 5.2. Enforcement. Each Party agrees and acknowledges that the other Parties do not have an adequate remedy at law for the
breach by any such Party of its covenants and agreements set forth in this Agreement, and that any breach by any such Party of its covenants and agreements set forth in this Agreement would result in irreparable injury to each other Party. Each
Party shall be entitled to enforce its rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement (including costs of enforcement) and to exercise any and all other rights existing in its
favor. The Parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that each Party may, in its sole discretion, apply to any court of law or equity of competent
jurisdiction for, and shall be entitled to specific performance or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation or threatened violation of the provisions of this Agreement. 

Section 5.3. Notice. All notices, requests or consents provided for or permitted to be given pursuant to this Agreement must be in
writing and must be given by depositing the same in the mail, addressed to the Person to be notified, postpaid, and registered or certified with return 

 receipt requested or by delivering such notice in person or by private-courier, prepaid, or by telecopier to such
party. Notice given by personal delivery or mail shall be effective upon actual receipt. Couriered notices shall be deemed delivered on the date the courier represents that delivery will occur. Notice given by telecopier shall be effective upon
actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next Business Day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a
Party pursuant to this Agreement shall be sent to or made at the address set forth below such Party’s signature to this Agreement, or at such other address as such Party may stipulate to the other Parties in the manner provided in this
Section 5.3. 
 Section 5.4. Entire Agreement. This Agreement constitutes the entire agreement of the Parties
relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 

Section 5.5. Waiver; Effect of Waiver or Consent. Any Party hereto may (a) extend the time for the performance of any
obligation or other act of any other Party hereto or (b) waive compliance with any agreement or condition of any other Party contained herein. Except as otherwise specifically provided herein, any such extension or waiver shall be valid only if
set forth in a written instrument duly executed by the party or parties to be bound thereby. No waiver or consent, express or implied, by any Party of or to any breach or default by any Person in the performance by such Person of its obligations
hereunder shall be deemed or construed to be a waiver or consent of or to any other breach or default in the performance by such Person of the same or any other obligations of such Person hereunder. Failure on the part of a Party to complain of any
act of any Person or to declare any Person in default, irrespective of how long such failure continues, shall not constitute a waiver by such Party of its rights hereunder until the applicable statute of limitations period has run. 

Section 5.6. Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement
of all the Parties hereto. 
 Section 5.7. Assignment. No Party shall have the right to assign its rights or obligations under
this Agreement without the consent of the other Parties hereto, except that PEG Inc. shall be enabled to assign its rights hereunder to an affiliate that agrees to be bound to the terms hereof; provided, that subject to the foregoing, this
Agreement shall be binding on the Parties and their respective successors and assigns. 
 Section 5.8. Counterparts. This
Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. Delivery of an
executed counterpart of a signature page to this Agreement by facsimile or electronic transmission shall be as effective as delivery of a manually executed counterpart of this Agreement. 

Section 5.9. Severability. If any provision of this Agreement or the application thereof to any Person or circumstance shall be
held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 

 Section 5.10. Rules of Construction. Interpretation of this Agreement shall be
governed by the following rules of construction: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires, (b) references to the
terms Article, Section, paragraph, and Schedule are references to the Articles, Sections, paragraphs, and Schedules to this Agreement unless otherwise specified, (c) the word “including” and words of similar import shall mean
“including, without limitation,” (d) provisions shall apply, when appropriate, to successive events and transactions, (e) the headings contained herein are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement and (f) this Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instrument to be drafted. 

Section 5.11. Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each
signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of
this Agreement and all such transactions. 
 Section 5.12. Laws and Regulations. Notwithstanding any provision of this Agreement
to the contrary, no party to this Agreement shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such party to be in violation of any Applicable Law. 

Section 5.13. No Third Party Beneficiaries. The provisions of this Agreement are enforceable solely by the Parties to this
Agreement, and no other Person, including any limited partner, member or equity holder of the Parties, shall have the right, separate and apart from the Parties, as applicable, to enforce any provision of this Agreement or to compel any Party to
this Agreement to comply with the terms of this Agreement. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Closing
Date. 
  

			
	PATTERN ENERGY GROUP LP
		
	By:	 	/s/ Dyann S. Blaine
		 	 Name: Dyann S. Blaine
 Title: Vice
President

  

			
	PATTERN ENERGY GROUP INC.
		
	By:	 	/s/ Dyann S. Blaine
		 	 Name: Dyann S. Blaine
 Title: Vice President
and Secretary

 Solely with Respect to Article IV: 

 

			
	PATTERN ENERGY GROUP HOLDINGS LP
		
	By:	 	/s/ Daniel M. Elkort
		 	 Name: Daniel M. Elkort
 Title: Vice
President

  

			
	PATTERN ENERGY GP LLC
		
	By:	 	/s/ Daniel M. Elkort
		 	 Name: Daniel M. Elkort
 Title: Vice
PresidentEX-10.4

 Exhibit 10.4 
  

 
  

BILATERAL MANAGEMENT SERVICES AGREEMENT 

Dated as of October 2, 2013 

by and between 
 PATTERN ENERGY
GROUP INC. 
 and 

PATTERN ENERGY GROUP LP 
  

 
  

 BILATERAL MANAGEMENT SERVICES AGREEMENT 

THIS BILATERAL MANAGEMENT SERVICES AGREEMENT (the “Agreement”) is made as of this 2nd day of October, 2013 (the
“Effective Date”), by and between PATTERN ENERGY GROUP INC., a Delaware corporation (“PEG Inc.”) and PATTERN ENERGY GROUP LP, a Delaware limited partnership (“PEG LP”). Each of PEG Inc. and PEG LP
is referred to herein as a “Party” and collectively as the “Parties.” 
 W I T
N E S S E T H: 
 WHEREAS, each of PEG Inc. and PEG LP wishes to engage the other to
provide certain management services and each of PEG Inc. and PEG LP wishes to accept such engagement to provide such services for the benefit of the other in accordance with the terms and conditions set forth herein; 

WHEREAS, the Parties contemplate the transfer of PEG LP employees and employees of its subsidiaries into PEG Inc. upon the occurrence of
certain events, after which the services provided by PEG LP will be internalized by PEG Inc. as set forth herein; and 
 WHEREAS, entering
into this Agreement is mutually beneficial to both Parties as the Parties will be sharing the costs of such services and by so doing will reduce the respective costs of each Party. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to be legally bound,
hereby agree as follows: 
 ARTICLE I 

DEFINITIONS AND USAGE 

Section 1.01 Definitions. Unless the context shall otherwise require or the express terms of this Agreement shall otherwise
provide, capitalized terms used herein shall have the following meanings: 
 “Affiliate” of a specified Person means any
other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the Person specified. 

“Agreement” is defined in the preamble. 

“Effective Date” is defined in the preamble. 

“Employee Reintegration” is defined in Section 6.01. 

“GAAP” means generally accepted accounting principles in the United States, consistently applied. 

  
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 “NASDAQ” means the NASDAQ Global Market. 

“notices” is defined in Section 12.05. 

“Person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint stock
company, trust, unincorporated organization or governmental authority. 
 “PEG Inc.” is defined in the preamble. 

“PEG Inc. Services” means the services set forth in Section 3.02. 

“PEG LP” is defined in the preamble. 

“PEG LP Services” means the services set forth in Section 2.02. 

“Reference Rate” means the rate as published, from time to time, in The Wall Street Journal as the prime lending rate
or “prime rate” plus one percent (1%). 
 “Reintegration Event” is defined in Section 6.01. 

“Senior Officer” means an officer that has been appointed to the relevant Party’s management committee, board or similar
body charged with the management of such Party. 
 “Shared PEG Executives” means the senior executives of PEG Inc. who will
provide executive management services to PEG LP in accordance with Section 3.01 and devote the percentage of time and have the responsibilities to PEG LP, in each case, as set forth on Schedule 1 hereto (as such schedule may be updated by
mutual agreement of the Parties from time to time). 
 “Support Assets” means any asset or assets that may be reasonably
necessary for and related to the administration of PEG Inc.’s business, such as computer hardware, software, data back-up infrastructure, facilities and any other assets as may be reasonably determined by PEG Inc. 

“Term” is defined in Section 9.01. 

“Total Market Capitalization” means the aggregate value of PEG Inc.’s issued and outstanding Class A Shares
(assuming that all of PEG Inc.’s then outstanding Class B Shares had converted into Class A Shares on a one-for-one basis prior to such date) determined based on the daily volume weighted average price of the Class A Shares on the
NASDAQ (or the then primary securities exchange or association or over-the-counter market on which the Class A Shares are listed for trading). 

“Trading Day” means a day on which the Class A Shares: 

  
 2 

 (i) are not suspended from trading on any national or regional securities exchange or association
or over-the-counter market at the close of business; and 
 (ii) have traded at least once on the NASDAQ or the national or regional
securities exchange or association or over-the-counter market that is the primary market for the trading of the Class A Shares. 

“Transaction” is defined in Section 12.09(c). 

ARTICLE II 
 PEG LP’S
RESPONSIBILITIES 
 Section 2.01 PEG LP Services. PEG LP shall make its personnel and the personnel of its subsidiaries
available to PEG Inc. to provide and perform the following services for PEG Inc. and its Affiliates and project entities in accordance, subject to Section 7.01, with the scope, instruction, and policies of PEG Inc. (the “PEG LP
Services”): 
 (a) day-to-day administrative services; 

(b) services related to accounting and tax, including, preparation and filing of tax returns and maintaining books and records; 

(c) services related to preparation of annual consolidated financial statements, and quarterly interim financial statements; 

(d) services related to regulatory reporting and other public filings and disclosures; 

(e) services related to preparation of annual budgets; 

(f) legal and corporate secretarial support and other corporate services; 

(g) services related to financial analysis, financing, and, when requested to do so, assisting in the process of raising capital by way of
debt, equity or otherwise; 
 (h) services related to human resources support and administration; 

(i) services related to information technology support; 

(j) providing advice with respect to issues concerning project development, permitting, construction management and engineering, power
marketing, environmental management and implementation; 
 (k) providing assistance in connection with PEG Inc.’s pursuit of
acquisition opportunities; 
 (l) services related to obtaining and maintaining insurance; 

  
 3 

 (m) services related to maintaining required governmental approvals and permits and preparing and
submitting filings with respect to PEG Inc.’s projects; 
 (n) services with respect to compliance with applicable laws and other
obligations of PEG Inc. and its projects; 
 (o) supervising and monitoring PEG Inc.’s and its counterparties’ compliance with
the terms and conditions of PEG Inc.’s contracts and performing on behalf of PEG Inc. reporting and other routine administrative responsibilities under such contracts; and 

(p) performing such other tasks of an administrative nature as PEG Inc. may reasonably request from time to time in connection with or
related to PEG Inc., its Affiliates and/or their respective operations. 
 Prior to taking any action that will materially diminish its ability to provide
the Services as contemplated under this Agreement, PEG LP will provide PEG Inc. with advance written notice of such anticipated action. PEG Inc. shall then have a period of 30 days to deliver a written response to PEG LP either consenting to such
action or stating that such action may only be taken following a notice period of 4 months. Failure by PEG Inc. to deliver such response within such 30 period shall be deemed consent of the described action. For the avoidance of doubt, PEG LP may
determine, in its sole discretion based on its own business considerations, to take any such action. 
 ARTICLE III 

PEG INC.’S RESPONSIBILITIES 

Section 3.01 PEG Inc. Services. PEG Inc. shall make its personnel and the personnel of its subsidiaries available to PEG LP to
provide and perform the following services for PEG LP and its Affiliates in accordance, subject to Section 6.01, with the scope, instruction, and policies of PEG LP (the “PEG Inc. Services”): 

(a) act as a Shared PEG Executive, as agreed from time to time (with the Shared PEG Executives on the Effective Date indicated on
Schedule 1 hereto); 
 (b) support PEG LP’s development activities, analysis of development opportunities and cost analysis
and assist with respect to issues concerning project operations and maintenance to the extent required for PEG LP’s development activities; and 

(c) perform such other tasks of an administrative nature as PEG LP may reasonably request from time to time in connection with or related
to PEG LP and/or its business activities; 

  
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 ARTICLE IV 

STANDARD OF PERFORMANCE 

Section 4.01 Diligence, Care and Prudence. Each Party shall use such diligence, care and prudence in the performance of its
duties, including each Party’s respective services set forth in Article II and Article III hereof and shall devote such time, effort and skills, and shall cause its employees and the employees of its subsidiaries to devote such
time effort and skills, as an ordinary professional in like position would do in like circumstances, with like executive responsibilities and fiduciary duties in the case of those employees that serve as executive officers of both PEG LP and PEG
Inc., but subject to and in accordance with the provisions of this Agreement. 
 Section 4.02 Limitation on Liability. A Party
shall have no liability under this Agreement for failure to take actions as to which it has requested in writing the instruction of the other Party to perform if such instruction is not timely given. 

ARTICLE V 
 COMPENSATION AND
PAYMENT 
 Section 5.01 PEG LP Services. PEG Inc. shall pay and reimburse PEG LP for the PEG LP Services as follows: 

(a) Reimbursable Costs. PEG Inc. shall reimburse PEG LP for PEG Inc.’s allocable share of the costs incurred by PEG LP on behalf of
PEG Inc. in providing the PEG LP Services. Such costs are expected to include, among other things, the share of costs allocable to PEG Inc. for internal, general and administrative overhead expenses (including rent, utilities, taxes, service
contracts, office supplies, insurance and other such costs), and compensation provided to the personnel of PEG LP. 
 (b) Reimbursable
Expenses. PEG Inc. shall reimburse PEG LP for PEG Inc.’s allocable share of all out-of pocket expenses that PEG LP incurs or pays in connection with the performance of the PEG LP Services. 

(c) Methodology. The allocation of costs and expenses attributable to PEG Inc. under Sections 5.01(a) and (b) above shall be
calculated in accordance with the methodology set forth on Exhibit A. 
 (d) Certain Fees. For the PEG LP Services set forth in
Section 2.01(j) in addition to any reimbursements due under Sections 5.01(a) and (b) above, PEG Inc. shall pay a fee in an amount equal to 5% of the cost of such services (such cost to be determined in accordance to Section 5.01(c))
and the fee shall be payable in accordance with Section 5.03. 
 Section 5.02 PEG Inc. Services. PEG LP shall pay and
reimburse PEG Inc. for the PEG Inc. Services as follows: 
 (a) Reimbursable Costs. PEG LP shall reimburse PEG Inc. for PEG LP’s
allocable share of the costs incurred by PEG Inc. on behalf of PEG LP in providing the PEG Inc. Services. Such costs are expected to include, among other things, the share of costs allocable to PEG LP for internal, general and administrative
overhead expenses (including rent, utilities, taxes, service contracts, office supplies, any Support Assets transferred to PEG Inc. by PEG LP pursuant to the Purchase Right herein, insurance and other such costs), and compensation provided to the
personnel of PEG Inc., including, for the avoidance of doubt, compensation provided to executive officers of PEG Inc. who also serve as executive officers of PEG LP. 

  
 5 

 (b) Reimbursable Expenses. PEG LP shall reimburse PEG Inc. for PEG LP’s allocable
share of all out-of-pocket expenses that PEG Inc. incurs in connection with the performance of the PEG Inc. Services. 
 (c)
Methodology. The allocation of costs and expenses attributable to PEG LP shall be calculated in accordance with the methodology set forth on Exhibit A. 

(d) Certain Fees. For the PEG Inc. Services set forth in Section 3.01(b), in addition to any reimbursements due under Sections
5.02(a) and (b) above, PEG LP shall pay a fee in an amount equal to 5% of the cost of such services (such cost to be determined in accordance to Section 5.02(c)) and the fee shall be payable in accordance with Section 5.03. 

Section 5.03 Billing and Payment. Within thirty (30) days following submission by a Party of an invoice to the other Party
reflecting any fees, costs and expenses due and payable by the other Party (which invoice shall include copies of third party invoices identifying and substantiating, in reasonable detail, the nature of such fees, costs and expenses and the basis
for reimbursement thereof), the receiving Party shall: 
 (a) Make such payment of the fees, costs and expenses, less any portion of
such fees, costs and expenses that the receiving Party disputes in good faith; 
 (b) With respect to any disputed portion of such
invoice, provide the billing Party with a written statement explaining, in reasonable detail, the basis for such dispute. The parties shall attempt to resolve any such disputed portion. In the event that the Parties are unable to resolve such
dispute, the provision of Article VIII hereof shall apply; and 
 (c) Any amount owed hereunder that remains unpaid more than ten
(10) days after the date such amount is due and payable under this Agreement shall accrue interest at the Reference Rate beginning on the first (1st) day after such amount became due and payable. 

Section 5.04 Records. Each Party shall retain copies of invoices submitted by it under this Agreement and of any third party
invoices or similar documentation contained or reflected therein, for a minimum period of three (3) years or such longer period to the extent required by law. 

ARTICLE VI 
 REINTEGRATION EVENT

 Section 6.01 Reintegration Event. Upon the completion of the first 20 consecutive trading day period during which the Total
Market Capitalization of PEG Inc. is no less than $2.5 billion (the “Reintegration Event”), PEG Inc. and PEG LP will cooperate to cause, within 30 Business Days of the Reintegration Event, the employees of PEG LP and its
subsidiaries to become the employees of PEG Inc. and its subsidiaries (the “Employee Reintegration”). 

  
 6 

 Section 6.02 No Payments. PEG LP will not be required to make any payments to PEG
Inc. upon the occurrence of the Employee Reintegration other than with respect to any employee related liabilities (such as vacation accrual or medical reimbursements) assumed by PEG Inc. PEG Inc. will not be required to make any payments to PEG LP
upon the occurrence of the Employee Reintegration, other than the payment of any statutory severance payments that may be due and payable to Canadian and Chilean employees as result of the Reintegration Event. 

Section 6.03 Services Following the Employee Reintegration. Following the Employee Reintegration, the PEG LP Services set forth in
Section 2.01 shall be deemed to be included in the PEG Inc. Services set forth in Section 3.01. PEG Inc. shall thereafter continue to provide the PEG Inc. Services to PEG LP (including, for the avoidance of doubt, such capabilities that as
result of the Employee Reintegration shall have become capabilities of PEG Inc.), solely to the extent requested by PEG LP in connection with PEG LP’s development activities. 

Section 6.04 Reimbursement following Employee Integration. Following the Employee Reintegration, PEG LP will continue to pay PEG
Inc. for the PEG Inc. Services being provided to PEG LP consistent with Section 5.02, provided, that Section 5.02(d) shall not apply. 

Section 6.05 Transition. The Parties shall mutually cooperate to cause the employees of PEG LP and its subsidiaries to become the
employees of PEG Inc. and to execute all employment and other agreements and documents necessary to implement the Employee Reintegration. 

ARTICLE VII 
 EMPLOYMENT OF
PERSONNEL 
 Section 7.01 Personnel. Notwithstanding any other provision of this Agreement to the contrary, (i) prior
to the occurrence of the Employee Integration, all personnel performing the PEG LP Services shall perform such services under the direction and supervision of PEG LP and its subsidiaries and shall at all times remain employees or independent
contractors, as the case may be, of PEG LP or one of its subsidiaries (other than PEG Inc.) or a third party and shall not become or be deemed to be employees of PEG Inc. or its subsidiaries, and (ii) all personnel performing the PEG Inc.
Services shall perform such services under the direction and supervision of PEG Inc. and its subsidiaries and shall at all times remain employees or independent contractors, as the case may be, of PEG Inc. or one of its subsidiaries or a third party
and shall not become or be deemed to be employees of PEG LP or its subsidiaries. No person shall perform any services hereunder not authorized to be performed hereunder by such person. 

  
 7 

 ARTICLE VIII 

DISPUTE RESOLUTION 

Section 8.01 Procedure. The Parties shall attempt, in good faith, to resolve or cure all disputes by mutual agreement in
accordance with this Article VIII before initiating any legal action or attempting to enforce any rights or remedies hereunder (including termination), at law or in equity (regardless of whether this Article VIII is referenced in the
provision of this Agreement which is the basis for any such dispute). If there is a dispute as to whether a breach or default has occurred or if any other dispute under this Agreement has arisen, either Party may give notice thereof to the other
Party which notice shall describe in reasonable detail the basis and specifics of the alleged breach, default or dispute. Within five (5), or such other time as the Parties may agree, days after delivery of such notice, the designated
representatives of both Parties shall meet to discuss and attempt to resolve or cure such dispute or alleged breach or default. If such representatives are unable to resolve the dispute or alleged breach or default within fifteen (15) days
after delivery of such notice, the matter shall be referred to a “Senior Officer” of PEG Inc. and a “Senior Officer” of PEG LP for resolution or cure. If the Senior Officers are unable to resolve the matter within ten
(10) days after the matter has been referred to them, the Parties may have recourse to mediation, arbitration or other alternative dispute resolution mechanism of their mutual selection. If the Parties cannot agree on an alternative dispute
resolution mechanism, each Party may pursue its own legal remedies. 
 Section 8.02 Continuation of Work. Pending final
resolution of any dispute, the Parties shall continue to fulfill their respective obligations under this Agreement; provided, however, that a Party may withhold any amount that is the subject of dispute from any payment otherwise due
hereunder during the pendency of any dispute resolution proceeding, including the pursuit of legal remedies. Upon a Party prevailing in such dispute, the other Party shall immediately pay to the prevailing Party the unpaid amount in dispute with
interest thereon, which interest shall accrue, at the Reference Rate, for each day from and including the date on which such amount was originally due to, but excluding, the date of actual payment thereof. 

ARTICLE IX 
 COMMENCEMENT AND
TERMINATION 
 Section 9.01 Term. This Agreement shall commence on the Effective Date and continue in full force and effect,
unless terminated in accordance with Section 9.03 or Section 9.04 (the “Term”). 
 Section 9.02
Cooperation. In connection with any termination of this Agreement each Party shall cooperate with all reasonable requests of the other Party in connection with the transition of its respective services to the entity selected by the other Party,
if applicable, to undertake such services after such termination of the Term. Following any termination pursuant to Section 9.03, PEG LP shall not be entitled to reimbursement of costs and expenses other than reimbursement for the
services and reasonable expenses incurred by PEG LP in connection with the transition of the PEG Inc. Services pursuant 

  
 8 

 
to this Section 9.02 for the period after such termination. Following any termination pursuant to Section 9.04, PEG Inc. shall not be entitled to reimbursement of costs
and expenses other than reimbursement for the services and reasonable expenses incurred by PEG Inc. in connection with the transition of the PEG LP Services pursuant to this Section 9.02 for the period after such termination. 

Section 9.03 Early Termination by PEG Inc. PEG Inc. may terminate this Agreement effective upon written notice of termination to
PEG LP if: 
 (a) PEG LP defaults in the performance or observance of any material term, condition or agreement contained in this Agreement
and such default continues for a period of 30 days after written notice thereof specifying such default and requesting that the same be remedied in such 30-day period; provided, however, that if the fact, circumstance or condition that
is the subject of such obligation cannot reasonably be remedied within such 30-day period and if, within such period, PEG LP provides reasonable evidence to PEG Inc. that it has commenced, and thereafter proceeds with all due diligence, to remedy
the fact, circumstance or condition that is the subject of such obligation, such period shall be extended for a reasonable period satisfactory to PEG Inc., acting reasonably, for PEG LP to remedy the same; 

(b) PEG LP engages in any act of gross negligence, fraud or wilful misconduct in performance of its obligations under this Agreement; 

(c) PEG LP makes a general assignment for the benefit of its creditors, institutes proceedings to be adjudicated voluntarily bankrupt, consents
to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to the filing of a petition seeking such
reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator, trustee or assignee in bankruptcy or in insolvency; or 

(d) PEG LP, or substantially all of its assets, is acquired by an unrelated third party. 

Section 9.04 Early Termination by PEG LP. PEG LP may terminate this Agreement effective upon written notice of termination to PEG
Inc. if: 
 (a) PEG Inc. defaults in the performance or observance of any material term, condition or agreement contained in this
Agreement and such default continues for a period of 30 days after written notice thereof specifying such default and requesting that the same be remedied in such 30-day period; provided, however, that if the fact, circumstance or
condition that is the subject of such obligation cannot reasonably be remedied within such 30-day period and if, within such period, PEG Inc. provides reasonable evidence to PEG LP that it has commenced, and thereafter proceeds with all due
diligence, to remedy the fact, circumstance or condition that is the subject of such obligation, such period shall be extended for a reasonable period satisfactory to the PEG LP, acting reasonably, for PEG Inc. to remedy the same; 

  
 9 

 (b) PEG Inc. engages in any act of gross negligence, fraud or wilful misconduct in performance of
its obligations under this Agreement; or 
 (c) PEG Inc. makes a general assignment for the benefit of its creditors, institutes proceedings
to be adjudicated voluntarily bankrupt, consents to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to
the filing of a petition seeking such reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator, trustee or assignee in bankruptcy or in insolvency. 

ARTICLE X 
 INDEMNIFICATION AND
LIMITATION OF LIABILITY 
 Section 10.01 Indemnification. 

(a) PEG LP shall indemnify and hold PEG Inc., its officers, directors, shareholders, employees, representatives, and agents acting on their
behalf harmless from any damage, loss, liability or expense (including reasonable attorneys’ fees) incurred by PEG Inc. as a result of PEG LP’s performance of its obligations under this Agreement, except to the extent such damage, loss,
liability or expense results from PEG Inc.’s gross negligence, fraud, wilful misconduct or breach of its obligations under this Agreement. 

(b) PEG Inc. shall indemnify and hold PEG LP, its officers, partners members, employees, representatives and agents acting on their behalf
harmless from any damage, loss, liability or expense (including reasonable attorneys’ fees) incurred by PEG LP as a result of PEG Inc.’s performance of its obligations under this Agreement, except to the extent such damage, loss, liability
or expense results from PEG LP’s gross negligence, fraud, wilful misconduct or breach of its obligations under this Agreement. 

Section 10.02 Exclusion of Consequential Damages. Neither PEG Inc. nor PEG LP shall be liable hereunder for punitive,
consequential or indirect damages of any nature including, but not limited to, damages for lost profits or revenues or the loss or use of such profits or revenue. 

Section 10.03 Total Limitation on Liability. Each Party’s total liability to the other Party in any fiscal year during the
Term on all claims of any kind, whether based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, for all losses or damages arising out of, connected with, or resulting from this Agreement or from the
performance or breach thereof, or from any services covered by or furnished during the Term of this Agreement, shall in no case exceed the aggregate value of the fees paid to the indemnified party for such fiscal year; provided, however, the
foregoing limitation on liability shall not apply to damage to a Party caused by the gross negligence, fraud or willful misconduct of the other Party with respect to the subject matter of this Agreement. 

  
 10 

 Section 10.04 Survival. For the avoidance of doubt, the provisions of this Article
IX shall survive the completion of the respective services rendered under, or any termination or purported termination of, this Agreement. 

ARTICLE XI 
 RIGHT TO PURCHASE
CERTAIN ASSETS 
 Section 11.01 Purchase Right. PEG LP hereby grants to PEG Inc. the unconditional right and option to
purchase for fair market value (as determined in accordance with this Agreement) any Support Assets, exercisable by PEG Inc. in its sole discretion at any time during the Term (the “Purchase Right”), and PEG LP will take all actions
necessary to cause the sale and transfer to PEG Inc. of any Support Assets with respect to which PEG Inc. has exercised the Purchase Right. 

Section 11.02 Procedure. PEG Inc. shall deliver to PEG LP written notice upon the exercise of the Purchase Right, which notice
shall specify the Support Assets with respect to which PEG Inc. is exercising the Purchase Right. Thereafter, the Parties will negotiate in good faith the fair market value that PEG Inc. will pay PEG LP for any Support Asset being purchased and the
other terms and conditions with respect thereto. The Parties will complete the purchase and sale within thirty (30) days following receipt of PEG Inc.’s initial notice to PEG LP. 

Section 11.03 Disputes. Any dispute between the Parties arising with respect to the purchase and sale of Support Assets, including
with respect to the fair market value of any Support Assets, shall be settled in accordance with Article VIII hereof. 

Section 11.04 Transfer. PEG LP will exercise commercially reasonable efforts to promptly transfer and assign to PEG Inc. any
licenses, registrations, warranties, consents and other rights associated with any Support Assets purchased by PEG Inc. pursuant to the Purchase Right. In the event that any such license, registration, warranty, consent or other right is not by its
terms transferable to PEG Inc., PEG LP will enter into such arrangements that give PEG Inc. substantially the same benefit as though such license, registration, warranty, consent or other right was transferred to PEG Inc. pursuant to the Purchase
Right. 
 ARTICLE XII 

MISCELLANEOUS 

Section 12.01 Assignment. 

(a) Assignment by PEG LP. PEG LP may not assign this Agreement without the prior written consent of PEG Inc. 

(b) Assignment by PEG Inc. PEG Inc. may not assign this Agreement without the prior written consent of PEG LP, provided,
however, that PEG Inc. may pledge, collaterally assign, or encumber its rights under this Agreement to any lender of PEG Inc. or its Affiliates. In such event, PEG LP agrees to execute a consent and/or

  
 11 

 
acknowledgement to such collateral assignment in form and substance reasonably acceptable to PEG LP and consistent with then-current financing practices. Notwithstanding the foregoing, PEG Inc.
may assign this Agreement without the prior written consent of PEG LP to any of its Affiliates, provided that such Affiliate agrees to be bound by the terms of this Agreement. 

Section 12.02 Authorization. Except as expressly authorized in writing by PEG Inc., or as contemplated under the PEG LP Services,
neither PEG LP nor any of its employees, officers or agents, shall have the right to bind PEG Inc. or create any obligation or to make any representation on behalf of PEG Inc. Except as expressly authorized in writing by PEG LP, or as contemplated
under the PEG Inc. Services, neither PEG Inc. nor any of its employees, officers or agents shall have the right to bind PEG LP or create any obligation or to make any representation on behalf of PEG LP. 

Section 12.03 Governing Law, Jurisdiction, Venue. This Agreement shall be governed by and interpreted in accordance with the laws
of the State of New York excluding any conflict-of-laws rule or principle that might refer the governance or the construction of this Agreement to the law of another jurisdiction irrespective of the choice of laws principles. Each Party hereby
irrevocably submits to the exclusive jurisdiction of any state or federal court sitting in New York, New York in connection with any claim, suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby or any dealings between the Parties relating to the subject matter of this Agreement and the relationship that is being established. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY
WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM, SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT
AND THE RELATIONSHIP THAT IS BEING ESTABLISHED. 
 Section 12.04 No Partnership. Nothing contained in this Agreement and no
action taken by any Party to this Agreement shall be (i) deemed to create any company, partnership, joint venture, association or syndicate among or between any of the Parties; or (ii) except as contemplated under the PEG Inc. Services or
the PEG LP Services, as applicable, deemed to confer on any Party any expressed or implied right, power or authority to enter into any agreement or commitment, express or implied, or to incur any obligation or liability on behalf of any other Party,
except as expressly authorized in writing. 
 Section 12.05 Notice. All notices, requests, consents, demands and other
communications (collectively “notices”) required or permitted to be given under this Agreement shall be in writing signed by the Party giving such notice and shall be given to each Party at its address or fax number set forth in
this Section 12.05 or at such other address or fax number as such Party may hereafter specify for such purpose by notice to the other Party and shall be either delivered personally or sent by fax or registered or certified mail, return
receipt requested, postage prepaid, or by a nationally recognized overnight courier service. A notice shall be deemed to have been given (i) when transmitted if given by fax or (ii) when delivered, if given by any other means. Notices
shall be sent to the following addresses: 

  
 12 

 To PEG Inc.: 

Pattern Energy Group Inc. 

Pier 1, Bay 3 

San Francisco, CA 94111 

Attention: General Counsel 

Facsimile: (415) 362-7900 

To PEG LP: 

Pattern Energy Group LP 

Pier 1, Bay 3 

San Francisco, CA 94111 

Attention: General Counsel 

Facsimile: (415) 362-7900 

Section 12.06 Usage. This Agreement shall be governed by the following rules of usage: (i) a reference in this Agreement to a
Person includes, unless the context otherwise requires, such Person’s successors and permitted assignees; (ii) a reference in this Agreement to a law, license, or permit includes any amendment, modification or replacement to such law,
license or permit; (iii) accounting terms used in this Agreement shall have the meanings assigned to them by GAAP; (iv) a reference in this Agreement to an article, section, exhibit, schedule or appendix is to an article, section, exhibit,
schedule or appendix of this Agreement unless otherwise stated; (v) a reference in this Agreement to any document, instrument or agreement shall be deemed to include all appendices, exhibits, schedules and other attachments thereto and all
documents, instruments or agreements issued or executed in substitution thereof, and shall mean such document, instrument or agreement, or replacement thereof, as amended, modified and supplemented from time to time in accordance with its terms and
as the same is in effect at any given time; (vi) unless otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; and (vii) the words “include” and “including” and words of similar import used in this Agreement are not limiting and shall be construed to be followed by the
words “without limitation”, whether or not they are in fact followed by such words. 
 Section 12.07 Entire Agreement.
This Agreement (including all appendices and exhibits thereto) constitutes the entire agreement and understanding of the parties thereto with respect to the subject matter hereof and supersedes all prior written and oral agreements and
understandings with respect to such subject matter. 

  
 13 

 Section 12.08 Amendment. Neither this Agreement nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified orally, but only by a document in writing signed by both Parties. 

Section 12.09 Confidential Information. 

(a) Except as required by applicable law or explicitly required or permitted by this Agreement, no Party shall, without the prior written
consent of the other Party, (i) disclose any confidential information obtained from the other Party to any third parties, other than to consultants, employees, officers and potential financing parties who have agreed to keep such information
confidential as contemplated by this Agreement and who need the information to carry out the purpose for which they were engaged (ii) use any confidential information obtained from the other party except for the purposes set forth in the
Agreement. 
 (b) This Section 12.09 does not apply to information that the receiving party can demonstrate is presently a matter
of public knowledge or which is or becomes available as a matter of public knowledge from a source which is not known to be prohibited from disclosing such information. In the event that a Party is requested or required by legal or regulatory
authority to disclose any confidential information, the Party shall promptly notify the disclosing Party of such request or requirement prior to disclosure so that the disclosing Party may seek an appropriate protective order. Notwithstanding any
other provision of this Agreement, the receiving Party shall have the right to disclose only so much of the confidential information as, in the advice of its legal counsel, the receiving party is legally required to disclose. In such an event, the
receiving Party agrees to use good faith efforts to ensure that all confidential information that is so disclosed will be accorded confidential treatment. 

(c) The foregoing obligations will not apply to the tax treatment or tax structure of the transactions contemplated by this Agreement (the
“Transaction”) and each Party (and any employee, representative, or agent of any party) may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all other
materials of any kind (including opinions or other tax analysis) that are provided to any party relating to such tax treatment and tax structure. However, any such information relating to such tax treatment and tax structure is required to be kept
confidential to the extent necessary to comply with any applicable securities laws. The preceding sentences are intended to cause the Transaction not to be treated as having been offered under conditions of confidentiality for purposes of Sections
1.6011-4(b)(3) and 301.6111-2(a)(2)(ii) (or any successor provision) of the Treasury Regulations issued under the Internal Revenue Code of 1986, as amended, and will be construed in a manner consistent with such purpose. 

Section 12.10 Discharge of Obligations. With respect to any duties or obligations discharged hereunder by a Party, such Party may
discharge such duties or obligations through the personnel of an affiliate of such Party; provided that, notwithstanding the foregoing, the Party shall remain fully liable hereunder for such discharged duties and obligations, unless such
duties are assigned pursuant to Section 12.01. 

  
 14 

 Section 12.11 Third Party Beneficiaries. Except as otherwise expressly stated herein,
this Agreement is intended to be solely for the benefit of the Parties hereto and their permitted assignees and is not intended to and shall not confer any rights or benefits to the general public or any other third party not a signatory hereto.

 Section 12.12 Severability. Any provision of this Agreement that shall be prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the parties hereto hereby waive any provision of law that renders any provision hereof prohibited or unenforceable in any respect. 

Section 12.13 Binding Effect. The terms of this Agreement shall be binding upon, and inure to the benefit of, the parties hereto
and their successors and permitted assigns. Subject to Section 12.11, nothing in this Agreement, whether express or implied, shall be construed to give any Person other than a Party hereto any legal or equitable right, remedy or claim
under or in respect of this Agreement or any covenants, conditions or provisions contained herein. 
 Section 12.14
Counterparts. This Agreement may be executed by the Parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 [REST OF PAGE INTENTIONALLY LEFT BLANK] 

  
 15 

 IN WITNESS WHEREOF, PEG Inc. and PEG LP have each caused this Agreement to be executed as of the
date first above written. 
  
  

			
	PATTERN ENERGY GROUP INC.
		
	By:	 	 /s/ Dyann S. Blaine

		 	Name: Dyann S. Blaine
		 	Title:   Vice President and Secretary

 
			
	PATTERN ENERGY GROUP LP
		
	By:	 	 /s/ Dyann S. Blaine

		 	Name: Dyann S. Blaine
		 	Title: Vice President

 Schedule 1 

Shared PEG Executives 
  

					
	 Executive
	  	 Title at PEG LP
	  	 Approximate expected

allocation to PEG LP

	Mike Garland	  	CEO	  	30-50%
	Hunter Armistead	  	Executive Director	  	60-80%
	Daniel Elkort	  	Director of Legal Services	  	50-70%
	Eric Lillybeck	  	Director of Fiscal and Administrative Services	  	40-60%
	Esben Pedersen	  	***	  	20-40%
	Dean Russell	  	Director of Engineering & Construction	  	70-90%

 Exhibit A 

Methodology for Determining Allocation of Cost and Expenses 
  

	1.	Allocation of costs and expenses will be between Pattern Energy Group LP (PEG LP) and Pattern Energy Group Inc. (PEG Inc.). 

  

	2.	Costs and expenses incurred at PEG LP or its subsidiaries will be allocated to PEG Inc. Conversely, costs and expenses incurred at PEG Inc. or its subsidiaries will be allocated to PEG LP. 

 

	3.	Costs and expenses included in the allocation will be: 

  

	 	a.	Employee (labor) related, including but not limited to salaries and benefits; 

  

	 	b.	Travel and entertainment; 

  

	 	c.	Professional fees, including but not limited to consulting and legal; 

  

	 	d.	Information technology, including but not limited to computer hardware, network services, software licenses and telecom; 

  

	 	e.	General and administrative, including but not limited to insurance, rent, and other facilities, advertising, office supplies, public relations, and delivery charges; 

 

	4.	Allocating labor and other costs and expenses will be determined by percentages based on time-study results. Quarterly questionnaires will be completed by all employees and will require all employees to accurately
designate time spent on various categories, including but not limited to development, construction, operating projects owned by PEG Inc. or general corporate matters. 

 

	5.	PEG LP will allocate costs and expenses to PEG Inc. by: 

  

	 	a.	Determining its total costs and expenses as listed above. 

  

	 	b.	Determine the allocation percentage from quarterly time-study questionnaire results. In general, percent classifications to operating projects owned by PEG Inc. will be used to allocate costs from PEG LP to PEG Inc.

  

	 	c.	Allocated costs and expenses will be equal to total costs and expenses multiplied by the allocation percentage. 

  

	6.	PEG Inc. will allocate costs and expenses to PEG LP by: 

  

	 	a.	Determining its total costs and expenses as listed above. 

  

	 	b.	Determine allocation percentage from quarterly time-study questionnaire results. In general, percent classifications to operating owned by PEG Inc. projects will be attributed to PEG Inc. The remaining percentage will
be used to allocate costs from PEG Inc. to PEG LP. 

  

	 	c.	Allocated costs and expenses will be equal to total costs multiplied by the allocation percentage.

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