Document:

Exhibit 10.2

 

Execution Copy

 

 

Meikle Wind
Energy Corp.

 

 

SHAREHOLDER
AGREEMENT

 

 

 

August 10, 2017

 

     

     

    

Table
of Contents

 

Page

 

	Article 1 INTERPRETATION	1
	1.1	Definitions	1
	1.2	Headings	9
	1.3	Number and Gender	9
	1.4	Business Days	9
	1.5	Currency and Payment Obligations	9
	1.6	Calculation of Interest	9
	1.7	Accounting Principles	9
	1.8	Statute and Agreement References	10
	1.9	Section and Schedule References	10
	1.10	Subsidiaries	10
	Article 2 CORPORATE AFFAIRS	10
	2.1	Business and Affairs of the Corporation	10
	2.2	Directors	10
	2.3	Officers	11
	2.4	Chairman	11
	2.5	Meetings of Board	11
	2.6	Observers; Attendance of Others	12
	2.7	Obligations of Directors	12
	2.8	Related Party Contracts	12
	2.9	Indemnification and Insurance	13
	2.10	Meetings of Shareholders	14
	2.11	Freedom in Decision Making	14
	2.12	Fiscal Year	15
	2.13	Business of the Corporation	15
	Article 3 MANAGEMENT OF THE CORPORATION AND APPROVALS	15
	3.1	Management of the Corporation	15
	3.2	Exercise of Authority	15

 

	3.3	Shareholder Approvals	15
	Article 4 PROJECT OPERATING BUDGET, CAPITAL CALLS AND DISTRIBUTIONS	16
	4.1	Project Operating Budget	16
	4.2	Funding Obligations with respect to the Corporation	16
	4.3	Funding Obligations with respect to the Partnership	17
	4.4	Distributions	17
	4.5	Distribution of Proceeds from Sale of the Corporation’s Assets	17
	Article 5 LOSS OF RIGHTS	18
	5.1	Bankruptcy	18
	5.2	Dilution Below 10%	18
	5.3	Events of Default	19
	5.4	Consequences of Loss of Rights	20
	Article 6 TRANSFER & DISPOSITION OF SHARES	21
	6.1	General Prohibition	21

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of Contents

(continued)

 

Page

 

	6.2	General Restrictions	21
	6.3	Permitted Transfer	22
	6.4	Permitted Transfers to Controlled Affiliates	23
	6.5	Restrictions on Transfer	23
	6.6	Transfer of Units by PSP or Pattern	24
	6.7	Release of Transferring Shareholder	24
	6.8	Pledge of Shares	25
	6.9	Conditions to Admission	25
	6.10	Indirect Transfers	25
	Article 7 BOOKS, RECORDS, AUDITORS AND TAX RETURNS	26
	7.1	Books and Records	26
	7.2	Access to Information	26
	7.3	Selection of Auditors and Reporting	27
	7.4	Accounting Principles	28
	7.5	Tax Returns	28
	Article 8 THIRD PARTY AGREEMENTS	28
	8.1	Pattern O&M Contract	28
	8.2	Pattern PAA	28
	Article 9 CONFIDENTIALITY	29
	9.1	Confidentiality	29
	9.2	Public Announcements	31
	9.3	Subsidiaries as Third Party Beneficiaries	31
	Article 10 GENERAL SALE PROVISIONS	31
	10.1	Warranties of Seller	31
	10.2	Closing	31
	10.3	Closing Conditions	31
	10.4	Payment	32
	10.5	Allocation of Purchase Price	32
	10.6	Indebtedness between Seller and the Corporation	32
	Article 11 ISSUE OF ADDITIONAL SHARES	33
	11.1	Issuance of Shares	33
	Article 12 REPRESENTATIONS AND WARRANTIES	33
	12.1	Representations and Warranties of the Shareholders	33
	12.2	Survival	34
	Article 13 GENERAL	34
	13.1	Actions in Accordance with Agreement	34
	13.2	Corporation Consent	34
	13.3	Agreement to be Bound	34
	13.4	Conflict with Articles	34
	13.5	Entire Agreement	35
	13.6	Amendment	35
	13.7	Rights of Set-Off	35
	13.8	Waiver	35

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(continued)

 

Page

 

	13.9	Governing Law	35
	13.10	Severability	35
	13.11	Time of Essence	36
	13.12	Further Assurances	36
	13.13	Notice	36
	13.14	Benefit/Binding	37
	13.15	Dispute Resolution Procedure	37
	13.16	No Right to Employment	38
	13.17	Assignment	38
	13.18	Legend on Certificates	38
	13.19	Subdivision, Consolidation, etc. of Shares	38
	13.20	Termination of Agreement and Survival	38
	13.21	Remedies	39
	13.22	Withholding	39
	13.23	Expenses	39
	13.24	Independent Advice	39
	13.25	Counterparts	39
	13.26	Corporate Opportunities, Waiver of Fiduciary Duties, Etc.	39

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Shareholder
Agreement

 

THIS SHAREHOLDER
AGREEMENT (the “Agreement”) is made as of August 10, 2017, among:

 

PATTERN CANADA FINANCE COMPANY ULC,
a corporation existing under the laws of the Province of Nova Scotia, along with its successors and permitted assigns,

(“Pattern Shareholder”)

 

and

 

VERTUOUS ENERGY CANADA INC., a
corporation existing under the laws of the Canada, along with its successors and permitted assigns,

(“PSP Shareholder”)

 

and

 

MEIKLE WIND ENERGY CORP., a corporation
existing under the laws of the Province of British Columbia

(the “Corporation”).

 

WHEREAS the
Corporation is the general partner of Meikle Wind Energy Limited Partnership, which owns the Project;

 

AND WHEREAS
the authorized capital of the Corporation consists of an unlimited number of common shares (the “Common Shares”)
of which there are outstanding as at the date of this Agreement the Common Shares set out in Schedule “A”;

 

AND WHEREAS
as of the date hereof the Shareholders (as defined herein) directly or indirectly own the Shares (as defined herein) set out opposite
their respective names in Schedule “A”;

 

AND WHEREAS the
Corporation and the Shareholders wish to enter into this Shareholder Agreement on the terms hereof, effective as of the date hereof;

 

NOW THEREFORE,
in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged by each of the Parties, the Parties agree as set forth below.

 

Article 1

INTERPRETATION

 

		1.1	Definitions

 

In this Agreement,
unless there is something in the subject matter or context inconsistent therewith, the following words and terms will have the
following meanings:

 

     

    	- 2 -

 

    

		(1)	“Administration Services” means the administration services to be provided by
the PAA Provider to the Project pursuant to the PAA which includes the bookkeeping, accounting, administration of accounts payable,
accounts receivable, preparation of financial statements and tax returns, loan administration (other than loan administration to
be provided in relation to construction loan and project financing for the Project as set forth in the O&M Contract) and other
administrative services that may be customarily requested and agreed by the PAA Provider and the Corporation from time to time
that are provided for the benefit of the Corporation in respect of the Project;

 

		(2)	“Affiliate” means, in respect of a Party, any Person that as at the time determined,
(i) Controls such Party, (ii) is Controlled by such Party, or (iii) is Controlled by the same Person that Controls such Party;
provided that (x) neither the Partnership nor the Corporation shall be deemed an Affiliate of either Pattern or PSP for any purpose
hereunder, (y) neither Pattern Energy Group LP nor Pattern Energy Group 2 LP shall be deemed an Affiliate of either Pattern or
PSP for any purpose hereunder, and (z) neither Shareholder shall be deemed an Affiliate of the other Shareholder for any purpose
hereunder;

 

		(3)	“Agreement”, “this Agreement”, “hereto”,
“herein”, “hereby”, “hereunder”, “hereof” and similar
expressions refer to this Agreement and not to any particular Article, Section, subsection, clause, subdivision or other portion
hereof and include any and every amending agreement and agreement supplemental or ancillary hereto;

 

		(4)	“Annual Financial Statements” has the meaning set forth in Section 7.3(3);

 

		(5)	“Applicable Law” means:

 

		(a)	applicable federal, state, provincial or municipal laws, orders-in-council, bylaws, codes, rules,
policies, regulations and statutes;

 

		(b)	applicable orders, decisions, codes, judgments, rules, injunctions, decrees, awards and writs of
any Governmental Agency;

 

		(c)	applicable rulings and conditions of any license, permit, certificate, registration, authorization,
consent and approval issued by a Governmental Agency;

 

		(6)	“Articles” means the articles of the Corporation, as amended, replaced or amended
and restated from time to time in accordance with the BCCA;

 

		(7)	“Auditors” means the auditors of the Corporation as determined by the Board
from time to time;

 

		(8)	“Bank” means the bank that is appointed the principal banker of the Corporation
from time to time;

 

		(9)	“BCCA” means the Business Corporations Act (British Columbia);

 

		(10)	“Board” means the board of directors of the Corporation appointed or elected
from time to time;

 

     

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		(11)	“Business” has the meaning set forth in Section 2.13;

 

		(12)	“Business Day” means any day other a Saturday, Sunday or federal holiday in
San Francisco, California, USA or Montreal, Quebec, Canada;

 

		(13)	“Capital Call” means a call by the Corporation, as the general partner of the
Partnership, to the Limited Partners and the Corporation to contribute a specified amount of money to the Partnership and/or a
call by the Shareholders to the Corporation for amounts required to permit the Corporation to fulfill its obligations to fund a
capital call made under the Partnership Agreement, as required by the context;

 

		(14)	“COD” means the Commercial Operation Date of the Project, as defined in the
Power Purchase Agreement, being January 31, 2017;

 

		(15)	“Common Shares” has the meaning set forth in the recitals;

 

		(16)	“Competitively Sensitive Information” has the meaning set forth in Section 9.1(2);

 

		(17)	“Competitor” means a Person that directly or indirectly (including through one
or more Affiliates) develops or operates wind power or solar power projects (“Competitive Activities”); for
the purposes of the restrictions on transfer set forth in Section 6.5, the definition of “Competitor” shall
not include a pension fund, investment fund, pooled investment vehicle, insurance company or institutional investor that is directly
or indirectly engaged in such activities through another Person (including through one or more Affiliates); provided that (a) the
transferee’s primary business activity is not its direct or indirect ownership of such Person, and (b) such transfer shall
not be to the Person that is directly engaged in Competitive Activities;

 

		(18)	“Confidential Information” has the meaning set forth in Section 9.1(1);

 

		(19)	“Contract” means any agreement, indenture, contract, purchase order, lease,
sublease, deed of trust, licence, option or instrument, in any case, whether written or oral;

 

		(20)	“Control” or “Controls” means, with respect to any Person
at any time, (i) holding, whether directly or indirectly, as owner or other beneficiary (other than solely as the beneficiary of
an unrealized security interest) securities or ownership interests of that Person carrying votes or ownership interests sufficient
to elect or appoint more than 50% of the individuals who are responsible for the supervision or management of that Person, or (ii)
the exercise of de facto control of that Person, whether direct or indirect and whether through the ownership of securities
or ownership interests or by Contract, trust or otherwise, and “Controlled” and “Controlling”
have corresponding meanings;

 

		(21)	“Controlled Affiliate” means (i) in respect of PSP, an Affiliate of PSP that
is Controlled by Public Sector Pension Investment Board, and (ii) in respect of Pattern, an Affiliate of Pattern that is Controlled
by PEGI;

 

		(22)	“Director” means an individual occupying at any time the position of a director
of the Corporation;

 

		(23)	“Dispute” has the meaning set forth in Section 13.15;

 

     

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		(24)	“Eligible Proceeding” has the meaning given to it in the BCCA;

 

		(25)	“Emergency Situation” means any unexpected situation which would, unless remedied
immediately, (a) result in a material breach of the Power Purchase Agreement or any Applicable Law, (b) have a material adverse
effect on the development, construction or operation of the Project, or (c) result in injury or death to any individual or any
material damage to or destruction of the environment or any of the material Project Assets;

 

		(26)	“Encumbrance” means any mortgage, lien, encumbrance, charge, pledge, assignment
by way of security, security interest, title retention, preferential right or trust arrangement, easement or any other security
arrangement or any other arrangement having the same effect;

 

		(27)	“Entity” means any Person other than a natural person;

 

		(28)	“EPC Contract” means the balance of plant agreement entered into by and between
the Partnership and the EPC Contractor, dated June 29, 2015, in connection with the Project;

 

		(29)	“EPC Contractor” means Borea Construction ULC which was engaged by the Partnership
pursuant to the EPC Contract;

 

		(30)	“Escalated Good Faith Discussions” has the meaning set forth in Section 13.15;

 

		(31)	“Financial Statements” means, collectively, the Annual Financial Statements
and the Quarterly Financial Statements;

 

		(32)	“Fiscal Year” has the meaning set forth in Section 2.12;

 

		(33)	“Funding Notice” has the meaning set forth in Section 4.2(1);

 

		(34)	“GAAP” means United States generally acceptable accounting principles, as such
principles may be amended, varied or replaced from time to time and as accepted and adopted by the applicable Party, which are
applicable as at the date on which any calculation made hereunder is to be effective or as at the date of any Financial Statements
referred to herein;

 

		(35)	“Governmental Agency” means any federal or national, state, provincial, county,
municipal or local government or regulatory or supervisory department, body, political subdivision, commission, agency, instrumentality,
ministry, court, judicial or administrative body, taxing authority, or other authority thereof (including any corporation or other
entity owned or controlled by any of the foregoing) acting in a regulatory capacity and having jurisdiction over the matter or
Person in question, including the Power Authority;

 

		(36)	“GST” means goods and services taxes imposed pursuant to the Excise Tax Act
(Canada) or any successor legislation thereto;

 

		(37)	“including” means including without limitation, and “includes” means
includes without limitation;

 

     

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		(38)	“Income Tax Act” means the Income Tax Act (Canada);

 

		(39)	“Initial Good Faith Discussions” has the meaning set forth in Section 13.15;

 

		(40)	“Interconnection Agreement” has the meaning given to it in the Power Purchase
Agreement;

 

		(41)	“Land Rights Acquisition Agreement” means a Contract between the Partnership
and a third party that sets out the terms on which real property will be assigned, sold, transferred or leased to the Partnership,
from such third party;

 

		(42)	“Land Rights Agreement” means a Contract between the Partnership and a third
party that sets out the terms and conditions on which such third party grants tenure Access Rights (as defined in the Power Purchase
Agreement) to the Partnership;

 

		(43)	“Limited Partners” means the limited partners of the Partnership, who, at the
date of this Agreement, are Pattern and PSP;

 

		(44)	“Material Supplier Contract” means (a) the TSA, (b) any Contract for the supply
and/or installation of other major components of the Project, and (c) the EPC Contract;

 

		(45)	“MW” means megawatt;

 

		(46)	“New Related Party Contract” has the meaning set forth in Section 2.8(1);

 

		(47)	“O&M Contract” means the management, operation and maintenance services
agreement entered into by the Partnership and the O&M Provider, dated June 29, 2015, in connection with the operations, management
and maintenance of the Project;

 

		(48)	“O&M Provider” means Pattern Operators Canada ULC or an Affiliate thereof,
Pattern or an Affiliate thereof, or a Permitted Transferee of Pattern or an Affiliate thereof, that is engaged by the Partnership
pursuant to the O&M Contract to provide operations, management and maintenance services to the Partnership with respect to
the Project;

 

		(49)	“Observer” has the meaning set forth in Section 2.6;

 

		(50)	“Operational Phase” means the period from the date hereof to the date that the
Project ceases operations;

 

		(51)	“Original Per Share Consideration” means, with respect to each Share, $1.00;

 

		(52)	“PAA” means the project administration agreement entered into by (i) the
Corporation on its own behalf and on behalf of the Partnership as the general partner and (ii) the PAA Provider, pursuant
to which the PAA Provider provides Administration Services to the Project, the Partnership and the Corporation;

 

		(53)	“PAA Provider” means Pattern Operators Canada ULC or an Affiliate thereof that
is engaged by the Corporation pursuant to the PAA to provide administration services to the Project, the Partnership, and the Corporation;

 

     

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		(54)	“Partners” means, collectively, the Limited Partners and the Corporation, and
“Partner” means any one of them;

 

		(55)	“Partnership” means Meikle Wind Energy Limited Partnership, of which the Corporation
is the sole general partner;

 

		(56)	“Partnership Agreement” means the amended and restated limited partnership agreement
dated as of August 10, 2017 governing the business and affairs of the Partnership;

 

		(57)	“Partnership Business” means the Business, as defined in the Partnership Agreement;

 

		(58)	“Party” means a party to this Agreement;

 

		(59)	“Pattern” means the Pattern Shareholder or its Controlled Affiliates to which
all but not less than all of the Shares held by Pattern Shareholder are Transferred and, in the case of a Transfer by Pattern Shareholder
of less than all of its Shares to its Controlled Affiliate(s), means the Pattern Shareholder and such Controlled Affiliate(s) together;

 

		(60)	“Pattern Control Rights” has the meaning set out in Section 5.1;

 

		(61)	“PEGI” means Pattern Energy Group Inc., a Delaware corporation;

 

		(62)	“Permitted Transferee” of a Shareholder means a Transferee of Shares pursuant
to Section 6.3(1)(a) or 6.3(2)(a), as applicable, provided that, with respect to PSP, none of its portfolio companies or other
investments shall be deemed a Permitted Transferee;

 

		(63)	“Person” means any individual, partnership, limited partnership, joint venture,
syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, limited liability
company, trust, trustee, executor, administrator or other legal personal representative, Governmental Agency or entity however
designated or constituted;

 

		(64)	“Power Authority” means British Columbia Hydro and Power Authority, and any
successor agency thereto;

 

		(65)	“Power Purchase Agreement” means the electricity purchase agreement between
the Partnership and the Power Authority dated April 22, 2010, as thereafter amended from time to time, in respect of the Project;

 

		(66)	“Project” means the approximately 180MW wind energy generation facility to be
located in the Peace Region of British Columbia;

 

		(67)	“Project Agreements” means in respect of the Project, Contracts of the types
described in Schedule “C”;

 

		(68)	“Project Assets” means any and all assets directly used in, or connected with,
the development, construction, ownership, maintenance, operation and decommissioning of the Project;

 

     

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		(69)	“Project Financing” means the project financing with recourse limited to the
Project Assets (but including a pledge of Shares, Units of the Partnership, assignments of certain of the Project Agreements, or
any other arrangements as are customarily required by project finance lenders under a project financing of renewable energy projects)
obtained by the Partnership from a lender or syndicate of lenders for purposes of financing the construction of the Project on
June 29, 2015, and any refinancing thereof or financing supplemental thereto;

 

		(70)	“Project Operating Budget” means the budget, including any amendments or agreed
deviations thereto, outlining the anticipated costs and expenses, the required capital contributions and the general expected timelines
associated with the Operational Phase of the Project, to be prepared and approved by the Board in accordance herewith;

 

		(71)	“PSP” means the PSP Shareholder or its Controlled Affiliates to which all but
not less than all of the Shares held by PSP Shareholder are Transferred and, in the case of a Transfer by PSP Shareholder of less
than all of its Shares to its Controlled Affiliate(s), means the PSP Shareholder and such Controlled Affiliate(s) together;

 

		(72)	“PSP Veto Rights” has the meaning set out in Section 5.1;

 

		(73)	“Qualified Transferee” means a party that has either (A)(x) a rating not less
than “BBB-” from S&P or “Baa3” from Moody’s or (y) is Controlled by an Affiliate meeting the
criteria specified in (x), or (B) together with its Affiliate(s) on consolidated basis, a tangible net worth of at least US$500,000,000,
or, in the case of an investment fund, pension plan or other similar entity, aggregate assets under management of at least US$500,000,000;

 

		(74)	“Quarterly Financial Statements” has the meaning set forth in Section 7.3(4);

 

		(75)	“Related Party” means, with respect to any Person, any Affiliate of such Person
and any director, officer, employee and agent of such Person and of such Person’s Affiliates;

 

		(76)	“Related Party Contract” means any contract between the Corporation or the Partnership
or any Subsidiaries (on the one hand) and a Shareholder or a Related Party of a Shareholder (on the other hand) and includes the
PAA and the O&M Contract;

 

		(77)	“Representatives” means, with respect to any Entity, such Entity’s officers,
directors, employees, consultants, agents, advisors, attorneys, lenders, shareholders and other equity investors;

 

		(78)	“Share Interests” means the respective ownership percentages of the Corporation
held by the Shareholders, determined for a Shareholder as the percentage reflected by a fraction (x) the numerator of which
is the number of Shares owned by such Shareholder and (y) the denominator of which is the total number of issued and outstanding
Shares;

 

		(79)	“Shareholders” means, at any time, all Persons owning any Shares at that time,
and “Shareholder” means any one of such Persons;

 

     

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		(80)	“Shares” means the Common Shares and any shares or securities into which Common
Shares may be converted or changed or which result from a consolidation, subdivision, reclassification or redesignation of Common
Shares, any shares or securities of the Corporation which are received as a stock dividend or distribution, any Common Shares received
on the exercise of any option, warrant or other similar right and any shares or securities which may be received by the Parties
as a result of an amalgamation, merger, arrangement or other reorganization of or including the Corporation;

 

		(81)	“SSA” means the sponsor services agreement between PEGI and the Public Sector
Pension Investment Board dated June 16, 2017;

 

		(82)	“Subsidiary” of any Person means an Entity Controlled by such Person, and “Subsidiaries”
means more than one of the foregoing, as applicable;

 

		(83)	“Third Party” means, with respect to Pattern or PSP, any Person who deals at
arm’s length with Pattern or PSP, as the case may be;

 

		(84)	“Transfer” means to sell, assign, dispose of, exchange, pledge, grant an Encumbrance
over, hypothecate or otherwise transfer Shares or any participation or interest therein, whether directly or indirectly (including
pursuant to a derivative transaction), or agree or commit to do any of the foregoing and, except as provided in Section 6.10, a
Transfer of the units or other equity interest in a Shareholder or in any Person that directly or indirectly holds units or other
equity interest in such Shareholder (other than an Upstream Pledge or Upstream Realization, or as permitted pursuant to Section
6.10(2); and “to Transfer”, “Transferred”, “Transferor” and “Transferee” and similar
expressions have corresponding meanings;

 

		(85)	“TSA” means the turbine supply agreement entered into by the Partnership and
General Electric Canada, dated June 29, 2015, in connection with the Project;

 

		(86)	“Turbine Service Agreement” means the full service agreement entered into by
the Partnership with General Electric Canada, dated June 29, 2015, in connection with the Project;

 

		(87)	Unit Interest” has the meaning set forth in the Partnership Agreement;

 

		(88)	"Units” means units of limited partnership interest in the capital of the Partnership;

 

		(89)	“Upstream Pledge” has the meaning set forth in Section 6.8; and

 

		(90)	“Upstream Realization” has the meaning set forth in Section 6.8.

 

		(91)	“Schedules

 

The following Schedules
are attached to and form part of this Agreement:

 

	Schedule	Title
	 	 
	“A”	Shareholdings

     

    	- 9 -

 

    

	“B”	Matters Requiring Shareholder Approval
	 	 
	“C”	Project Agreements
	 	 

		1.2	Headings

 

The division of this
Agreement into sections and the insertion of headings are for convenience of reference only and will not affect the construction
or interpretation of this Agreement.

 

		1.3	Number and Gender

 

Unless the context
requires otherwise, words importing the singular include the plural and vice versa, and words importing gender include all genders.

 

		1.4	Business Days

 

If this Agreement requires
any payment to be made or other action to be taken on a day that is not a Business Day, then the payment or action will be made
or taken on the next Business Day.

 

		1.5	Currency and Payment Obligations

 

Except as this Agreement
otherwise expressly provides, all dollar amounts in this Agreement are stated in Canadian dollars and any payment this Agreement
contemplates will be made by cash, wire transfer, certified cheque or any other method that provides immediately available funds.

 

		1.6	Calculation of Interest

 

In calculating interest
payable under this Agreement for any period of time, the first day of such period will be included and the last day of such period
will be excluded.

 

		1.7	Accounting Principles

 

All accounting terms
not specifically defined in this Agreement will be construed in accordance with GAAP. Where the character or amount of any asset
or liability or item of revenue or expense is required to be determined, or any consolidation or other accounting computation is
required to be made for the purpose of this Agreement or any certificate or other document made or delivered pursuant hereto, such
determination or computation will, to the extent applicable and except as otherwise specified in this Agreement or as otherwise
agreed in writing by the Parties, be made in accordance with GAAP applicable as at the date on which such determination or computation
is made or required to be made, applied on a consistent basis.

 

     

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		1.8	Statute and Agreement References

 

Unless otherwise expressly
stated, any reference in this Agreement to any statute or any section of a statute will be deemed to be a reference to such statute
or section as amended, restated, replaced or re-enacted from time to time and any reference in this Agreement to any agreement
will be deemed to be a reference to such agreement, as amended, supplemented or replaced from time to time.

 

		1.9	Section and Schedule References

 

Unless the context
requires otherwise, references in this Agreement to Articles, Sections, Subsections or Schedules are to articles, sections, subsections
or schedules, as the case may be, of this Agreement.

 

		1.10	Subsidiaries

 

Any Subsidiaries of
the Corporation or the Partnership will be governed and operated in the same manner as the Corporation and the Partnership are
governed and operated hereunder, and this Agreement will be interpreted and applied to give effect to the foregoing.

 

Article 2

CORPORATE AFFAIRS

 

		2.1	Business and Affairs of the Corporation

 

The Shareholders will
cause such meetings to be held, votes to be cast, resolutions to be passed, by-laws to be made and confirmed, documents to be executed
and all other things and acts to be done to ensure that, at all times, that the provisions set forth in this Agreement are complied
with, and the Corporation and the Partnership comply with their respective obligations under the Partnership Agreement. The Corporation
shall not take any action that it is permitted to take pursuant to the Partnership Agreement, on its own behalf or on behalf of
the Partnership, except in compliance with this Agreement. The Corporation shall not hold an interest in any Person other than
the Partnership and wholly-owned Subsidiaries of the Corporation.

 

		2.2	Directors

 

		(1)	There will initially be three (3) Directors. During such period as Pattern holds any Shares, Pattern
will have the right to nominate three (3) of the Directors, subject to Article 5.

 

		(2)	Each nominee for the position of Director will be an individual who is not disqualified under the
BCCA from acting as a Director. If a Director ceases to be a Director for any reason (a “retiring director”),
the Shareholders will fill the vacancy thereby created by appointing as soon as reasonably possible that individual who is nominated
by the Shareholder who nominated the retiring director. In the event of the proposed removal of any Director, each Shareholder
agrees to vote for such removal if, and against such removal unless, it has been proposed or approved by the Shareholder who nominated
such Director.

 

     

    	- 11 -

 

    

		2.3	Officers

 

The Board will appoint
the officers of the Corporation from time to time. The Board will set forth the signing authority of each officer appointed by
the Board from time to time.

 

		2.4	Chairman

 

The Board will appoint
(from time to time) one of its members as the chairman of the Board, however, such appointee will not have a second casting vote
in case of an equality of votes.

 

		2.5	Meetings of Board

 

		(1)	Frequency and Location. Regular meetings of the Board will be held at least annually, or
more frequently as approved by the Board. If any Director wishes to have any additional meetings of the Board it may require such
meetings to be held by giving notice of the meeting in accordance with the provisions of Section 2.5(2) and the meeting will
be held in accordance with such notice unless otherwise approved by the Board. Meetings of the Board will be held in Toronto or,
if the Board so determines otherwise, at any other place within or outside Canada. Directors may participate in meetings of the
Board by means of telephone or other communication facilities which permit all individuals participating in the meeting to communicate
adequately with each other, and Directors participating in such a meeting by such means are deemed for all purposes of this Agreement
to be present at the meeting, even if none of the Directors is present at the designated location for such meeting. Matters to
be determined by the Board will be addressed and voted on by the Directors in a timely manner and without undue delay.

 

		(2)	Notice. For the regular annual meetings of the Directors, notice of the time and place of
each such meeting (including an agenda and relevant background materials) will be given by the Chairman in the manner provided
herein to each Director not less than ten Business Days before the time when the meeting is to be held. Notice of the time and
place of any meeting that is not a regular annual meeting (including an agenda and relevant background materials) will be given
by the Director requiring such meeting to all other Directors not less than ten (10) Business Days before the time when the meeting
is to be held, except in the case of an Emergency Situation when such notice will be given in the manner provided herein to each
other Director not less than five (5) Business Days before such time. Notwithstanding the foregoing, no notice of a meeting will
be necessary if all Directors present at such meeting waive advance notice of the meeting or otherwise signify their consent in
writing to the holding thereof, either before, during or after the holding thereof. Notices to each Director may be given to him
or her at the address of the Shareholder who appointed such Director.

 

		(3)	Quorum. A Quorum for the transaction of business at any meeting of the Board will consist
of a majority of the Directors (in person or by telephone or other facilities which permit all individuals participating in the
meeting to hear each other). If a quorum is not present for a meeting of the Board within 30 minutes after the time fixed for holding
the meeting, the meeting, if convened pursuant to a written request of Shareholders, will be cancelled, but otherwise will be adjourned
to such date not less than five or more than twenty-one (21) days after the original date for the meeting as is determined by the
Board

 

     

    	- 12 -

 

    

at a time and
location determined by the Board. The Directors present at any such previously adjourned meeting shall constitute a quorum.

 

		(4)	Minutes. The Chairman will cause minutes of all meetings of the Board to be taken and a
copy of the minutes of each meeting will be provided to each Director within twenty-one (21) days after each meeting. The Chairman
will also cause a copy of every resolution to be provided to each Shareholder within twenty-one (21) days after it is adopted.
For greater certainty, the failure of the Chairman to fulfill his or her obligations hereunder will not invalidate or otherwise
affect the efficacy of any meeting, business conducted at any meeting or the resolutions passed at such meeting.

 

		2.6	Observers; Attendance of Others

 

Each Shareholder will
be entitled to appoint one or more observers (each, an “Observer”) to the Board each of whom will be entitled
to receive, concurrently with the Directors, the materials referred to in Section 2.5(2) and to attend all meetings of the
Board as an observer. Observers will not be entitled to vote or consent in respect of any matter put before the Board. In addition
to any Directors and Observers, any representative of counsel to the Corporation, any Shareholder and any representative of the
Auditors may attend and speak at any meeting of the Board with the prior consent of the Directors.

 

		2.7	Obligations of Directors

 

The Directors will
not be required to devote their full time to the Board or the Business, but only such time as will be reasonably necessary to perform
their duties pursuant to this Agreement. Directors will not be entitled to any fees, salaries, commissions or other compensation
from the Corporation in respect of their work on the Board and each Shareholder will be responsible for all expenses incurred by
its nominees in carrying out their duties on the Board.

 

		2.8	Related Party Contracts

 

		(1)	The Corporation, on behalf of itself or on behalf of the Partnership, or Subsidiaries of the Corporation
or the Partnership, shall not enter into any Related Party Contracts after the date of this Agreement (each, a “New Related
Party Contract”) without first complying with the following, subject to Section 2.8(2) below:

 

		(a)	the Corporation shall provide written notice to PSP setting out details of the scope of services
to be provided by Corporation, on behalf of itself or on behalf of the Partnership, or Subsidiaries of the Corporation or the Partnership
or such other related party under such New Related Party Contract and the corresponding fees payable to Corporation, on behalf
of itself or on behalf of the Partnership, or Subsidiaries of the Corporation or the Partnership or such other related party thereunder.

 

		(b)	Within thirty (30) days of such a notice, PSP may object to such New Related Party Contract on
the ground that either the scope of services to be provided is not reasonable or that the proposed fees payable in respect of such
New Related Party

 

     

    	- 13 -

 

    

Contract are
not within the range of “market fees” (factoring in the proposed scope).

 

		(c)	If PSP objects to the New Related Party Contract prior to the expiration of the thirty (30) day
notice period provided for in clause (b), above, then the matter shall be referred to a dispute resolution process (such process
to include mediation through progressively senior levels of each of PSP and the Corporation, following which the matter
shall be referred to an independent third party expert reasonably selected by PSP, who shall determine if the scope of services
to be provided is not reasonable or that the proposed fees payable in respect of such New Related Party Contract are not within
the range of “market fees” (factoring in the proposed scope).

 

		(d)	If PSP does not object to the New Related Party Contract prior to the expiration of the thirty
(30) day notice period provided for in clause (b), above, or if the independent third party expert, referred to in clause (c),
above, so determines that the proposed scope of services is reasonable and that the proposed fees payable in respect of such New
Related Party Contract are within the range of “market fees”, then the Corporation shall be permitted to enter into
or cause the Partnership or applicable Subsidiary to enter into the applicable New Related Party Contract.

 

		(2)	The process set forth in Section 2.8(1), including the rights of PSP thereunder, shall apply only
for so long as PSP holds a Unit Interest of at least 25% (or a permitted transferee of such rights from PSP in compliance with
Section 3.3 holds a Unit Interest of at least 25%). For certainty, if the process set forth in Section 2.8(1) ceases to apply,
the Corporation may on behalf of itself or on behalf of the Partnership, or Subsidiaries of the Corporation or the Partnership,
enter into any New Related Party Contracts without complying with Section 2.8(1).

 

		(3)	This Section 2.8 is subject to Article 5.

 

		2.9	Indemnification and Insurance

 

		(1)	To the fullest extent permitted by law, the Corporation shall, in respect of an individual who:
(i) is or was a Director or officer of the Corporation; (ii) is or was a Director or officer of another company at the time when
such company was an affiliate of the Corporation, or at the request of the Corporation; or (iii) at the request of the Corporation,
is or was, or holds or held a position equivalent to that of a Director or officer of a partnership, trust, joint venture or other
unincorporated entity (and in each case, includes their respective heirs and personal or other legal representatives), (y) indemnify
such individual against all judgments, penalties or fines awarded or imposed in, or an amount paid in settlement of, an Eligible
Proceeding to which such individual is or may be liable; and (z) after the final disposition of an Eligible Proceeding, pay the
costs, charges and expenses, including legal and other fees, actually and reasonably incurred by such individual, in respect of
such proceeding; provided that,

 

		(a)	such individual acted honestly and in good faith with a view to the best interests of the Corporation;
and

 

     

    	- 14 -

 

    

		(b)	in the case of an Eligible Proceeding, other than a civil proceeding, he or she had reasonable
grounds for believing that his or her conduct was lawful.

 

The intention of this Section 2.9
is that all individuals referred to in this Section shall have all benefits provided under the indemnification provisions of the
BCCA to the fullest extent permitted by law, and the Corporation shall forthwith pass all resolutions and take such other steps
as may be required to give full effect to this Section.

 

		(2)	The Corporation has no obligation to purchase and maintain insurance for the benefit of the Directors
and officers of the Corporation against such liabilities. Each Shareholder shall be responsible for maintaining such insurance
as may be desired for their appointees to the Board.

 

		2.10	Meetings of Shareholders

 

		(1)	Location. Meetings of Shareholders will be held in the City of Toronto or such other place
as may be consented to by each of the Shareholders and may be called by any one Director or any Shareholder that holds not less
than a 30% Share Interest upon not less than fifteen (15) days’ notice. If the Shareholders consent, a meeting of Shareholders
may be held by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately
with each other during the meeting, and a Shareholder participating in a meeting by such means is deemed to be present.

 

		(2)	Quorum. A quorum for a meeting of Shareholders will be at least two individuals with at
least one representative from Pattern and at least one representative from PSP present in person and holding or representing by
valid proxy not less than an aggregate of a 50.1% Share Interest. If at any meeting of Shareholders a quorum will not be present,
the Board may call a supplementary meeting of the Shareholders on not less than five (5) Business Days’ notice to each Shareholder,
which notice will describe with reasonable particularity the business proposed to be transacted at such meeting. The Shareholders
attending the supplementary Shareholders’ meeting in person or represented by proxy at such meeting will constitute a quorum
for the transaction of the business referred to in the notice of meeting and any business related thereto which may come before
the meeting. For avoidance of doubt, matters requiring Shareholder Approval shall require the approvals specified in Section 3.3
regardless of the actual number of Shareholders present at a meeting.

 

		(3)	Minutes. The Chairman will cause minutes of all meetings of the Shareholders to be taken
and a copy of the minutes of each meeting will be provided to each Shareholder within 21 days after each meeting. For greater certainty,
the failure of the Chairman to fulfill his or her obligations hereunder will not invalidate or otherwise affect the efficacy of
any meeting, business conducted at any meeting or the resolutions passed at such meeting.

 

		2.11	Freedom in Decision Making

 

Subject to this Agreement
and Applicable Laws, no Shareholder shall be accountable or liable to the other Shareholder or the Corporation as a result of acting
in its own best interest, except in the case of any decision or action which is illegal or in breach of this Agreement and

 

     

    	- 15 -

 

    

except as otherwise expressly
provided in this Agreement. Without limitation to the foregoing, no appointee of a Shareholder to the Board shall be accountable
or liable to the other Shareholder, the Corporation or the other members of the Board as a result of his or her membership on the
Board. Notwithstanding the foregoing, each Shareholder shall in good faith consider any objections or reservations expressed by
the other Shareholder concerning the performance of an appointee of such Shareholder.

 

		2.12	Fiscal Year

 

The fiscal year of
the Corporation (the “Fiscal Year”) will end on December 31 in each year.

 

		2.13	Business of the Corporation

 

The Corporation’s
sole business will be to act as the sole general partner of the Partnership and any business which is incidental and ancillary
to such business (the “Business”).

 

Article 3

MANAGEMENT OF THE CORPORATION AND APPROVALS

 

		3.1	Management of the Corporation

 

The Directors will
manage, or supervise the management of, the business and affairs of the Corporation in accordance with this Agreement, the BCCA
and the Articles.

 

		3.2	Exercise of Authority

 

Except as otherwise
expressly required in this Agreement, all decisions, approvals, determinations and consents of the Directors required by this Agreement
or the BCCA may be decided, approved, determined or consented to by a majority of the Directors present at a duly constituted meeting
of the Board or by a written resolution signed by all of the Directors. The Directors may delegate, as applicable, certain rights
and responsibilities to other Board committees or other Persons at any time and from time to time. Such delegated rights and responsibilities
remain under the management and supervision of the Directors.

 

		3.3	Shareholder Approvals

 

In addition to any
other approval required elsewhere in this Agreement or by any Applicable Law, including the BCCA, the Corporation may not make
a decision about, take action on or implement any matter referred to in Schedule “B” without the written consent of
(a) for so long as PSP holds a Unit Interest of at least 25%, PSP, and (b) Pattern (each, a “Shareholder Approval”).
Pattern may transfer its consent rights under this Section 3.3 to a Permitted Transferee or an acquiror of all or any part of its
Shares and Units, in compliance with the Partnership Agreement. PSP may transfer its consent rights under this Section 3.3 and
the rights of PSP under Section 2.8) to a Permitted Transferee or an acquiror of 100% of PSP’s Shares and Units held on the
date hereof, in compliance with the Partnership Agreement (provided that such transferee’s consent rights will terminate
when such transferee owns a Unit Interest of 25% or less), but such consent rights are not otherwise transferable. If PSP transfers
less than all of its Shares and Units to a Person other than a Permitted Transferee, PSP shall

 

     

    	- 16 -

 

    

retain full authority
to exercise its surviving consent rights (for certainty provided that PSP or its Affiliate retains a Unit Interest of at least
25%), but appropriate provisions may be included in the applicable transfer agreement as to PSP consulting with the transferee
prior to the exercise of such consent rights. This Section 3.3 is subject in its entirety to the provisions of Article 5.

 

Article 4

PROJECT OPERATING BUDGET, CAPITAL CALLS AND DISTRIBUTIONS

 

		4.1	Project Operating Budget

 

The Project Operating
Budget shall be prepared by the Board and delivered to each Shareholder, annually not less than sixty (60) days (or such earlier
period as may be required by the lenders under the Project Financing) prior to each Fiscal Year end. The Project Operating Budget
shall include all anticipated costs and expenses of operations including financing costs and principal and interest payments on
Project loans, and shall specify sources and uses of funds including any equity capital contributions for anticipated operations
deficits.

 

		4.2	Funding Obligations with respect to the Corporation

 

		(1)	The Board shall determine from time to time the capital and operating requirements of the Corporation
and, unless otherwise unanimously agreed by the Shareholders, shall make Capital Calls to fund such capital and operating requirements
to the extent required in order to ensure that the Corporation is able to pay its liabilities as they become due.

 

		(2)	The Shareholders shall be required to advance funds to the Corporation in such amounts and on the
terms and conditions included in a Capital Call properly issued from time to time in writing (a “Funding Notice”)
by the Board to each Shareholder, in accordance with the Project Operating Budget that has been approved by the Board, with a schedule
setting out the aggregate amount of the Capital Call and the portion of such Capital Call required to be contributed by each Shareholder,
calculated by multiplying such aggregate Capital Call by such Shareholder’s Share Interest. Unless unanimously agreed by
the Shareholders, all Capital Calls shall be satisfied in cash and not in other property.

 

		(3)	Funding Notices issued by the Board will include the bank account information to which payment
is to be made and the due date on which the payment is required from each Shareholder, which date shall be at least five (5) Business
Days following the date that the Funding Notice is delivered or given.

 

		(4)	Following the issuance of a Capital Call by the Board, each Shareholder will make a capital contribution
to the Corporation in the amount specified as such Shareholders’ portion of the Capital Call in the Funding Notice.

 

		(5)	Each Shareholder shall be required to contribute its respective share of a Capital Call as set
forth in the applicable Funding Notice.

 

		(6)	Except as set forth above, no Shareholder will be required or permitted to make a capital contribution.

 

     

    	- 17 -

 

    

		(7)	Upon a Shareholder funding any amount pursuant to a Capital Call, the Corporation’s records
will be amended to reflect the amount funded and the manner in which such amounts were funded (whether by way of a subscription
for additional Shares or otherwise).

 

		4.3	Funding Obligations with respect to the Partnership

 

		(1)	The Corporation, in its capacity as general partner of the Partnership, shall issue Capital Calls
when necessary or required for any expenditure in accordance with an approved Project Operating Budget or that has otherwise been
approved by the Board, and each Shareholder shall cause its members of the Board to take such actions as are necessary to issue
such Capital Calls.

 

		4.4	Distributions

 

		(1)	To the extent permitted by Applicable Law, the distribution policy of the Corporation will be to
declare and pay from time to time during the Operational Phase, at least once per quarter but not more frequently than one time
per month, as a dividend or distribution, as the case may be, all available cash. For purposes of this Section 4.4(1), “available
cash” will means all surplus cash amounts, earnings or available capital of the Corporation after the payment of all
expenses and after deducting reasonable reserves for existing or reasonably foreseeable obligations, including reserves contained
in the then applicable Project Operating Budget for operations or future capital expenses, all as may be determined by the Board
from time to time, acting reasonably. The Board may, in its discretion, determine the form of such dividend or distribution and,
for greater certainty, whether any such distribution should be a return of capital or otherwise. No dividends or distributions
shall be declared by the Corporation at any time prior to the Operational Phase.

 

		(2)	The Corporation, as general partner of the Partnership, will comply with the Partnership’s
distribution policy, as set forth in Section 8.1 of the Partnership Agreement, at all times. Commencing after financial close for
the Project, unless prohibited by Applicable Law, and subject to requirements set forth by the Project lenders as provided in Section
4.4(3) below, the Corporation, as general partner of the Partnership, will at least once each calendar quarter cause the Partnership
to distribute all available cash (as such term is defined in Section 8.1(1) of the Partnership Agreement) to the Partners
as otherwise provided in the Partnership Agreement.

 

		(3)	Notwithstanding the foregoing, the Parties agree to revise the distribution policies of the Corporation
and the Partnership set forth in this Agreement and the Partnership Agreement to the extent required by any lender in any loan
or Project Financing document in respect of the Project that is approved in accordance with this Agreement.

 

		4.5	Distribution of Proceeds from Sale of the Corporation’s Assets

 

In the event of the sale
of all or substantially all of the assets of the Corporation, it is the intention of the Parties that the net proceeds of such
sale would be distributed to the Shareholders in a tax-efficient manner and in accordance with this Agreement and the Articles.

 

     

    	- 18 -

 

    

Article 5

LOSS OF RIGHTS

 

		5.1	Bankruptcy

 

		(1)	If the Pattern Shareholder or an Affiliate of Pattern that holds Units initiates voluntary bankruptcy
proceedings, or fails to dismiss involuntary bankruptcy proceedings filed against it (including any such proceedings arising through
consolidation with any bankruptcy proceedings relating to PEGI) within 180 days of filing, then Pattern will automatically and
without the need for any further act or formality assign and transfer all of its Shares to PSP for a purchase price per Share equal
to the Original Per Share Consideration and concurrently with such sale and transfer, Pattern will no longer be a Shareholder but
will remain a Party hereto and shall have all of the rights and obligations of a Shareholder hereunder except that it will no longer
have (a) the right to appoint Directors under Section 2.2, and (b) the right to consent to matters under Section 3.3 (collectively
(a) and (b), the “Pattern Control Rights”).

 

		(2)	If the PSP Shareholder or an Affiliate of PSP that holds Units initiates voluntary bankruptcy proceedings,
or fails to dismiss involuntary bankruptcy proceedings filed against it (including any such proceedings arising through consolidation
with any bankruptcy proceedings relating to an Affiliate of Public Sector Pension Investment Board) within 180 days of filing,
then PSP will automatically and without the need for any further act or formality assign and transfer all of its Shares to Pattern
for a purchase price per Share equal to the Original Per Share Consideration and concurrently with such sale, PSP will no longer
be a Shareholder but will remain a Party hereto and shall have all of the rights and obligations of a Shareholder hereunder except
that it will no longer have (a) the right to consent to matters under Section 3.3, or (b) the rights set out in Section 2.8 (collectively
(a) and (b), the “PSP Veto Rights”).

 

		5.2	Dilution Below 10%

 

		(1)	If the aggregate Unit Interest of Pattern and the Pattern Affiliate that holds Units is reduced
below 10% as a result of a failure by Pattern or such Pattern Affiliate to fund Capital Calls made pursuant to the Partnership
Agreement, then Pattern will automatically and without the need for any further act or formality assign and transfer all of its
Shares to PSP for a purchase price per Share equal to the Original Per Share Consideration and concurrently with such sale and
transfer, Pattern will no longer be a Shareholder but will remain a Party hereto and shall have all of the rights and obligations
of a Shareholder hereunder except that Pattern will no longer have the Pattern Control Rights.

 

		(2)	If the aggregate Unit Interest of PSP and the PSP Affiliate that holds Units is reduced below 10%
as a result of a failure by PSP or such PSP Affiliate to fund Capital Calls made pursuant to the Partnership Agreement, then PSP
will automatically and without the need for any further act or formality assign and transfer all of its Shares to Pattern for a
purchase price per Share equal to the Original Per Share Consideration and concurrently with such sale, PSP will no longer be a
Shareholder but will remain a Party hereto and shall have all of the rights and obligations of a Shareholder hereunder except that
PSP will no longer have the PSP Veto Rights. Notwithstanding the requirements in Sections

 

     

    	- 19 -

 

    

2.8 and 3.3
for PSP to have a Unit Interest of at least 25%, PSP will retain the PSP Veto Rights where its (or its Affiliate’s) Unit
Interest (a) is at least 10%, and (b) has been reduced below 25% solely as a result of a failure of PSP or its Affiliate to fund
Capital Calls made pursuant to the Partnership Agreement (and not as a result of Transfers of Units).

 

		5.3	Events of Default

 

		(1)	If Pattern or the Corporation (while Pattern has the right under Section 2.2 to appoint all the
Directors) is determined by a court to have committed actual fraud, wilful misconduct or bad faith in connection with the performance
of its duties under this Agreement or if the Corporation (while Pattern has the right under Section 2.2 to appoint all the Directors)
is determined by a court to have committed actual fraud, wilful misconduct or bad faith in connection with the performance of its
duties under the Partnership Agreement, then Pattern will be required to sell and transfer its Shares and concurrently with such
sale, Pattern will no longer be a Shareholder but will remain a Party hereto and shall have all of the rights and obligations of
a Shareholder hereunder except that it will lose its Pattern Control Rights, as applicable, in accordance with Section 5.1(1),
mutatis mutandis.

 

		(2)	If PSP is determined by a court to have committed actual fraud, wilful misconduct or bad faith
in connection with the performance of its duties under this Agreement, then it will be required to sell and transfer its Shares
and concurrently with such sale, PSP will no longer be a Shareholder but will remain a Party hereto and shall have all of the rights
and obligations of a Shareholder hereunder except that it will lose its PSP Veto Rights in accordance with Section 5.1(2), mutatis
mutandis.

 

		(3)	If (a) a court determines that Pattern has committed a material breach of its obligations under
this Agreement in a repetitive manner and notice of such material breaches was given by PSP to Pattern following each such material
breach, and (b) such repetitive material breach has a material adverse effect on the value of PSP’s investment in the Partnership,
then Pattern will be required to sell and transfer its Shares and concurrently with such sale, Pattern will no longer be a Shareholder
but will remain a Party hereto and shall have all of the rights and obligations of a Shareholder hereunder except that it will
lose its Pattern Control Rights in accordance with Section 5.1(1), mutatis mutandis.

 

		(4)	If a court determines that the Corporation (while Pattern has the right under Section 2.2 to appoint
all the Directors), the Pattern Shareholder or any Affiliate of Pattern that is a counterparty to a Related Party Contract (or
the equivalent thereof with respect to any renewable energy project that is jointly owned by Pattern and PSP) or the SSA, has committed
a felony crime or its equivalent under Applicable Laws involving actual fraud against an equity investor in one or more renewable
energy projects controlled by PEGI, then Pattern will be required to sell and transfer its Shares and concurrently with such sale,
Pattern will no longer be a Shareholder but will remain a Party hereto and shall have all of the rights and obligations of a Shareholder
hereunder except that it will lose its Pattern Control Rights in accordance with Section 5.1(1), mutatis mutandis.

 

     

    	- 20 -

 

    

		5.4	Consequences of Loss of Rights

 

		(1)	Subject to Section 5.4(4) below, upon a loss by Pattern of the Pattern Control Rights under this
Article 5, PSP shall have the right to appoint all Directors under Section 2.2 instead of Pattern, and decisions and actions referred
to in Schedule B may be approved and undertaken without the consent of Pattern.

 

		(2)	If the Pattern Control Rights have been transferred in accordance with Section 3.3 to a Permitted
Transferee, such Permitted Transferee will lose such Pattern Control Rights in any circumstance where this Article 5 provides that
Pattern would lose such Pattern Control Rights.

 

		(3)	If the PSP Veto Rights have been transferred in accordance with Section 3.3 to a Permitted Transferee,
such Permitted Transferee will lose such PSP Veto Rights in any circumstance where this Article 5 provides that PSP would lose
such PSP Veto Rights.

 

		(4)	Notwithstanding anything to the contrary herein, including Sections 5.4(1)-(3) or 13.17, if (a)
Pattern is required to sell and transfer its Shares and to lose its Pattern Control Rights under the foregoing provisions of this
Article 5, and (b) thereafter, Pattern (or the Pattern Affiliate holding Units) Transfers its Units to a Third Party as defined
in and in accordance with the Partnership Agreement, then in connection with such Transfer: (x) PSP shall Transfer to such Third
Party or its Affiliate a number of Shares (for a purchase price per Share equal to the Original Per Share Consideration) such that
the Third Party or its Affiliate acquires a Share Interest equal to its (or its Affiliate’s) Unit Interest, as the same may
be adjusted pursuant to Section 6.6, and (y) such Third Party or its Affiliate acquiring Shares shall have all Pattern Control
Rights and other rights of Pattern hereunder including the right to appoint all Directors under Section 2.2, mutatis mutandis.

 

		(5)	Notwithstanding anything to the contrary herein, including without limitation Sections 5.4(1)-(3)
or 13.17, if (a) PSP is required to sell and transfer its Shares and to lose its PSP Veto Rights under the foregoing provisions
of this Article 5, and (b) thereafter, PSP (or the PSP Affiliate holding Units) Transfers its Units to a Third Party as defined
in and in accordance with the Partnership Agreement, then in connection with such Transfer: (x) Pattern shall Transfer to such
Third Party or its Affiliate a number of Shares (for a purchase price per Share equal to the Original Per Share Consideration)
such that the Third Party or its Affiliate acquires a Share Interest equal to its (or its Affiliate’s) Unit Interest, and
(y) such Third Party or its Affiliate acquiring Shares shall have all PSP Veto Rights and other rights of PSP hereunder, mutatis
mutandis.

 

		(6)	Each of the PSP Shareholder and the Pattern Shareholder hereby irrevocably constitutes and appoints
the other as its true and lawful attorney and agent in the name of and on behalf of the PSP Shareholder or the Pattern Shareholder,
as the case may be, to execute and deliver in the name of the PSP Shareholder or the Pattern Shareholder, as the case may be, all
such assignments, transfers, deeds or instruments as may be necessary to effectively transfer and assign the Shares held by the
PSP Shareholder or the Pattern Shareholder, as the case may be, to the other Shareholder or to a Third Party in accordance with
Section 5.1 or this Section 5.4. Such appointment and power of attorney, being coupled with an interest, shall not be revoked by
the dissolution, winding-up,

 

     

    	- 21 -

 

    

bankruptcy
or insolvency of the PSP Shareholder or the Pattern Shareholder, as the case may be, and each such Shareholder hereby ratifies
and confirms and agrees to ratify and confirm all that the other Shareholder may lawfully do or cause to be done by virtue of the
provisions hereof. Each Shareholder hereby irrevocably consents to the transfer of its Shares made pursuant to the provisions of
this Article 5.

 

		(7)	The exercise of any rights or remedies, or loss of rights, pursuant to this Article 5 shall
be subject to the terms of any Project Financing. If the consent of any lender or other party is required under any Project Financing
as a condition to the exercise of any rights pursuant to this Article 5 or the transfer of any Shares pursuant to this Article 5,
each Party shall use its commercially reasonable efforts to obtain such consent or approval promptly following the event giving
rise to such rights.

 

Article 6

TRANSFER & DISPOSITION OF SHARES

 

		6.1	General Prohibition

 

		(a)	No Shareholder may Transfer any Shares except as expressly permitted by this Agreement and the
Articles.

 

		(b)	Any purported Transfer of Shares in violation of this Agreement is void to the maximum extent permitted
by Applicable Law.

 

		(c)	The Corporation will not register or permit the registration of any Transfer of any Shares made
otherwise than in compliance with the provisions of this Agreement, nor will any voting or other rights attaching to or relating
to such Shares be exercisable, nor will any purported exercise of such rights be valid or effective, nor will any dividend or distribution
be made on such Shares.

 

		6.2	General Restrictions

 

		(1)	Notwithstanding any other provision in this Agreement to the contrary, no Shareholder may Transfer
any Shares if:

 

		(a)	as a result, the remaining Shareholders, the Corporation or the Partnership would become subject
to any materially restrictive or onerous governmental controls or regulations to which they were not subject prior to the proposed
Transfer by reason of the nationality or residence of the proposed Transferee;

 

		(b)	as a result, the remaining Shareholders, the Corporation or the Partnership would become subject
to any taxation or additional taxation to which they were not subject prior to the proposed Transfer;

 

		(c)	the Transfer is not permitted by Applicable Law or any term of any material agreement or instrument
affecting the Partnership, including the Power Purchase Agreement and the terms of any Project Financing, unless such Transfer
is permitted thereunder if a consent or approval is first obtained and such consent or approval is so obtained;

 

     

    	- 22 -

 

    

		(d)	such Transfer is not exempt from any applicable requirement to file a prospectus, registration
statement or similar document with applicable securities regulatory authorities to qualify the trade of such Shareholder’s
Shares;

 

		(e)	such Transfer would result in the Partnership no longer being eligible to participate in and receive
payments from the Power Authority under the Power Purchase Agreement in respect of the Project, unless such result would not occur
if a consent or approval is first obtained and such consent or approval is so obtained;

 

		(f)	the Transferee (i) appears on the Specially Designated Nationals and Blocked Persons List of the
Office of Foreign Assets Control in the United States Department of the Treasury; (ii) is a Person with whom a transaction is prohibited
by applicable provisions of Executive Order 13224, the USA Patriot Act, the Trading with the Enemy Act or the foreign
asset control regulations of the United States Treasury Department, in each case as amended from time to time; (iii) is Controlled
by any Person described in (i) or (ii); or has its principal place of business located in any country with whose citizens the Corporation
is prohibited from entering into transactions pursuant to the requirements set forth in (ii);

 

		(g)	any funds being used to purchase the Shares and satisfy the Transferee’s commitments under
this Agreement represent or will represent proceeds of crime for the purpose of the Proceeds of Crime (Money Laundering) and
Terrorist Financing Act (Canada);

 

		(h)	the Transferee is a Person identified in the Regulations Implementing the United Nations Resolutions
on the Suppression of Terrorism, the United Nations Al Qaida and Taliban Regulations, the Regulations Implementing the United Nations
Resolution on the Democratic People’s Republic of Korea, the Regulations Implementing the United Nations Resolution on Iran
or the Special Economic Measures (Burma) Regulations;

 

		(i)	the Transferee has not agreed in writing with the other Shareholders to assume and be bound by
all the obligations of the Transferor pursuant to this Agreement with respect to the Shares transferred arising from and after
the date of such Transfer and to be subject to all the restrictions to which the Transferor is subject under the terms of this
Agreement; or

 

		(j)	any consents to such Transfer required pursuant to any Project Agreements or Governmental Agencies
will not have been obtained in writing and delivered to the other Shareholders.

 

		6.3	Permitted Transfer

 

		(1)	Permitted by PSP. Notwithstanding Section 6.1 but subject to Section 6.2, Section 6.5,
Section 6.7 and Section 6.9, PSP may, at any time and from time to time, Transfer all but not less than all Shares held by it upon
prior notice to the Corporation and the other Shareholders but without first obtaining a Shareholder Approval:

 

     

    	- 23 -

 

    

		(a)	to a Controlled Affiliate of PSP provided that such Transfer complies with Section 6.4; and

 

		(b)	to any other Person pursuant to, and in compliance with, Section 6.6.

 

		(2)	Permitted by Pattern. Notwithstanding Section 6.1 but subject to Section 6.2, Section 6.5,
Section 6.7 and Section 6.9, Pattern may, at any time and from time to time, Transfer all but not less than all Shares held by
it upon prior notice to the Corporation and the other Shareholders but without first obtaining a Shareholder Approval:

 

		(a)	to a Controlled Affiliate of Pattern provided that such Transfer complies with Section 6.4; and

 

		(b)	to any other Person pursuant to, and in compliance with, Section 6.6.

 

		6.4	Permitted Transfers to Controlled Affiliates

 

		(1)	Notwithstanding Section 6.1 but subject to Section 6.2 and Section 6.9, a Shareholder who
is not then in default of its obligations under this Agreement will be entitled to Transfer to a Controlled Affiliate, without
complying with Section 6.6, title to all or part of its Shares to one of its Controlled Affiliates, provided that:

 

		(a)	the Transferor first establishes to the satisfaction of the other Shareholders, acting reasonably,
(and if the other Shareholder does not agree that the Transferee is a Permitted Transferee then the matter shall be subject to
the dispute resolution procedures outlined in Section 13.15) that the Person to which it is transferring its Shares is a Controlled
Affiliate;

 

		(b)	a copy of the document or instrument effecting the Transfer is delivered to the Corporation;

 

		(c)	the Corporation and the other Shareholders receive prior written notice of such Transfer;

 

		(d)	all of the requirements for a Transfer set forth under Article 10 are satisfied; and

 

		(e)	where the Transferor transfers less than all of its Shares to a Controlled Affiliate, all Shares
held or acquired by such Transferor and its Controlled Affiliate(s) shall be aggregated together for the purpose of determining
the availability of any rights under this Agreement, and (i) such Transferor and its Controlled Affiliate(s) may apportion such
rights as among themselves in any manner they deem appropriate and (ii) shall be jointly and severally liable for their respective
obligations under this Agreement.

 

		6.5	Restrictions on Transfer

 

Notwithstanding anything
to the contrary in this Article 6 and any requirement or prohibition of any lender under the Project Financing, no Shareholder
shall be entitled to Transfer any Shares pursuant to this Article 6 or if such Transfer would breach any term of or cause
a default under the Power Purchase Agreement, unless such Transfer is permitted

 

     

    	- 24 -

 

    

thereunder if a consent
or approval is first obtained and such consent or approval is so obtained. In addition, PSP may not Transfer any Shares, at any
time, to a Competitor.

 

		6.6	Transfer of Units by PSP or Pattern

 

		(1)	Reference is made to Section 8.5 of the Partnership Agreement (the “ROFO Provision”),
Section 8.6 of the Partnership Agreement (the “Tag Provision”) and Section 8.7 of the Partnership Agreement
(the “Drag Provision”). Subject to the following sentences of this Section 6.6, if a Shareholder or its Affiliate
holding Units is transferring Units pursuant to the ROFO Provision, Tag Provision or Drag Provision, as applicable, or any other
transfer other than to a Controlled Affiliate, the Shareholder must also transfer a number of Shares held by such Shareholder to
the applicable Transferee such that the Share Interest held by the Transferee equals the Unit Interest held by the Transferee or
its Affiliate. The Transfer or issuance of any Shares hereunder will be made at a purchase price per Share equal to the Original
Per Share Consideration (subject to appropriate adjustment in the event of any share split, combination or other similar recapitalization
with respect to the shares in the capital of the Corporation). The parties acknowledge that for regulatory reasons, PSP has determined
to hold a maximum Share Interest equal to 30% unless and until it holds 100% of the Shares, resulting in its Share Interest being
lower than the Unit Interest held by PSP or its Affiliate until such time, and resulting in the Share Interest held by Pattern
being higher than the Unit Interest held by Pattern or its Affiliate until such time. At any time where the Share Interest of PSP
is lower than the Unit Interest of PSP or its Affiliate, “Excess Shares” means the number of Shares held by
Pattern which if transferred by Pattern to PSP would equalize the Share Interest and Unit Interest of PSP and its Affiliate holding
Units. With respect to Transfers or issuances of Shares in accordance with this Agreement, the following shall apply:

 

		(a)	in connection with transfers of Units by PSP or its Affiliate, PSP may require that Pattern transfer
any or all of the Excess Shares held by Pattern to the transferee of such Units;

 

		(b)	where PSP would at any time be issued or transferred Shares resulting in a Share Interest greater
than 30% but lower than 100%, PSP may elect to have Pattern hold all Excess Shares; and

 

		(c)	where any Units are issued that would alter the relative Unit Interests as between the Pattern
or its Affiliate (on the one hand) and PSP or its Affiliate (on the other hand), the Corporation shall issue a number of Shares
to Pattern or PSP as applicable to ensure (subject to (b) above) that the Share Interest held by such Party is equal to the Unit
Interest held by such Party or its Affiliate.

 

		6.7	Release of Transferring Shareholder

 

Subject (for certainty)
to Section 6.4(1)(e), if a Shareholder Transfers, in accordance with this Agreement, all of its Shares, the transferring Shareholder
will thereupon have no further funding obligations under this Agreement, provided that such transferring Shareholder will remain
responsible for any and all of its debts and liabilities, and other obligations under this Agreement arising prior to the time
of such Transfer. For avoidance of doubt, the confidentiality obligations of Article 9 shall survive the Transfer by a Shareholder
of any or all of its Shares.

 

     

    	- 25 -

 

    

		6.8	Pledge of Shares

 

Except as required
pursuant to the terms of any Project Financing that is approved by the Board, no Shareholder will be permitted to Transfer any
of its Shares by way of an Encumbrance to any other Person or otherwise grant a lien on any of its Shares without the prior written
consent of all other Shareholders, which consent may be unreasonably or arbitrarily withheld; provided, however, that any collateral
assignment to any lender(s) or agent on behalf of such lender(s) of any direct or indirect interest in a Shareholder (an “Upstream
Pledge”), or any foreclosure of such collateral assignment by such lender(s) or such agent (an “Upstream Realization”)
and subsequent disposition of such direct or indirect interest in a Shareholder shall be permitted so long as (a) such lender is
financial institution with experience in the renewables sector, (b) any subsequent disposition, sale, assignment, transfer, conveyance,
gift, exchange or other disposition by such lender or agent of its direct or indirect interest in a Shareholder is to a Qualified
Transferee and (c) such subsequent disposition, sale, assignment, transfer, conveyance, gift, exchange or other disposition by
such lender or agent of such indirect interest in a general partner or direct or indirect interest in a Shareholder complies with
the transfer restrictions hereunder including Article 6.

 

Notwithstanding anything
to the contrary in this Agreement, any Shareholder may pledge or otherwise grant a security interest in any of its Shares in connection
with any Project Financing being provided to the Partnership. Transfers of such Shares to a secured party or any subsequent transferee
in connection with any such financing are permitted.

 

		6.9	Conditions to Admission

 

As conditions to the
admission of a Transferee of a Shareholder as a substituted shareholder, any such Person will:

 

		(a)	execute and acknowledge such instruments, in form and substance satisfactory to the other Shareholder,
as the other Shareholder will deem necessary or desirable to effectuate such admission and to confirm the agreement of the Person
being admitted as a substitute shareholder to be bound by all of the terms and provisions of this Agreement and to continue the
Corporation without its dissolution or termination under the laws of the Province of British Columbia, or for any other reason;
and

 

		(b)	pay all reasonable expenses in connection with such admission, including the cost of preparing
and filing of all necessary notices or amending declarations in any jurisdiction.

 

		6.10	Indirect Transfers

 

		(1)	A Transfer of the units or other equity interest in a Shareholder or in any Person that directly
or indirectly holds units or other equity interests in such Shareholder (other than an Upstream Pledge or Upstream Realization
or as permitted pursuant to Section 6.10(2)) shall not constitute a Transfer by the Shareholder of its Shares provided that (a)
where the Shareholder is Pattern, that after such Transfer, PEGI continues to ultimately Control Pattern (or its Permitted Transferee),
and (b) where the Shareholder is PSP, that after

 

     

    	- 26 -

 

    

such Transfer,
Public Sector Pension Investment Board continues to ultimately Control PSP (or its Permitted Transferee).

 

		(2)	For certainty, a Transfer of the units or other equity interests in PEGI or Public Sector Pension
Investment Board or their respective direct and indirect owners shall not constitute a Transfer for purposes of this Agreement.

 

Article 7

BOOKS, RECORDS, AUDITORS AND TAX RETURNS

 

		7.1	Books and Records

 

		(1)	The Corporation shall use its best efforts to procure that the PAA Provider will maintain the minute
book of the Corporation in Canada, provided that the PAA Provider will make available such books and records in a form that will
enable the Shareholders to access such ledgers and other books and records in Toronto, Ontario, during normal business hours and
through remote electronic access.

 

		(2)	The Corporation shall use its best efforts to procure that the PAA Provider will cause to be kept
appropriate books and records (financial or otherwise) with respect to the business of the Corporation. Any books and records kept
by or on behalf of the Corporation in the normal course of business, including books of account and records of the proceedings
of the Corporation, may be kept on, or be in the form of, computer disk, hard disk, magnetic tape, or any other information storage
device, provided that the books and records so maintained are convertible into clearly legible written form within a reasonable
period of time. The books of the Corporation will be maintained, for financial reporting purposes, on an accrual basis in accordance
with GAAP. The foregoing books and records will be maintained after the dissolution of the Corporation for the time periods required
by the laws of Canada at the principal office of the PAA Provider in Canada. Such books and records will be made available to the
Shareholders in a form that will enable such Persons to access them in Toronto, Ontario, during normal business hours and through
remote electronic access.

 

		7.2	Access to Information

 

		(1)	Each Shareholder, and its respective Representatives and auditors, will be allowed to have access,
during normal business hours, to all books and records and information concerning the Corporation.

 

		(2)	Each Shareholder will be permitted to cause auditors engaged by it to review, subject to such auditors
agreeing to comply with reasonable confidentiality restrictions, any Financial Statements prepared in respect of the Corporation
and all books and records and working papers related thereto.

 

		(3)	Upon request of a Shareholder made to the Corporation, Representatives and auditors of such Shareholder
will, subject to such Representatives or auditors agreeing to comply with reasonable confidentiality restrictions, be provided
with an opportunity to meet during normal business hours, with the Auditors and other Persons who are familiar with the affairs
of the Corporation.

 

     

    	- 27 -

 

    

		(4)	Each Shareholder will bear its own costs for the access, and any audit or review by its Representatives
or auditors referred to in this Section 7.2, including any costs associated with making photocopies of documents.

 

		7.3	Selection of Auditors and Reporting

 

		(1)	The Corporation will retain internationally recognized accountants as may be approved by the Shareholders
as the Auditors, to conduct an audit of the books and records of the Corporation, as may be required pursuant to this Agreement,
in accordance with GAAP and the terms of this Agreement.

 

		(2)	The Corporation will prepare the Financial Statements and will retain the Auditors to audit such
Financial Statements (to the extent required hereby) in accordance with GAAP and the terms of this Agreement.

 

		(3)	The Corporation will prepare and deliver to each of the Shareholders within one
hundred and twenty (120) days of the end of each Fiscal Year, annual financial statements (which do not include footnotes)
in respect of the Corporation (the “Annual Financial Statements”), which shall be audited and prepared in accordance
with GAAP, to the extent required by the Project Financing. If the Annual Financial Statements are not required to be audited,
then PSP shall have the right to request an audit of the Corporation, in which case the Corporation shall use commercially reasonable
efforts to produce audited Annual Financial Statements, to be prepared (at PSP’s sole cost and expense) in an expeditious
manner.

 

		(4)	The Corporation will prepare and deliver to each of the Shareholders within sixty (60) days after
the end of each quarter of each Fiscal Year (including the final quarter of each Fiscal Year), a reasonably detailed report summarizing
the status of the activities of the Corporation as at the end of the applicable quarter, financial and operational results data
and reforecasting (if applicable) and a distribution forecast (including calculations of debt services coverage ratio and forecasted
distributions to partners, which will include the unaudited unconsolidated quarterly financial statements of the Corporation for
the quarter then ended (which do not include footnotes), including a balance sheet, a statement of income (profit and loss) and
a statement of Shareholders’ equity and a related statement of changes in cash flow for such quarter (all of which will contain
comparisons to the prior year) and will contain notes explaining material balances set out in the balance sheet and income statements
and which specify the accounting standard used (the “Quarterly Financial Statements”).

 

		(5)	The Corporation will deliver to each Shareholder, on a quarterly basis together with the Quarterly
Financial Statements, a reasonably detailed operating report, including summary environmental, health and safety information, as
applicable.

 

		(6)	In addition to any report required under this Agreement or pursuant to Applicable Law, the Corporation
will prepare or cause to be prepared and delivered to each of the Shareholders such other quarterly and annual reports in respect
of the financial condition of the Corporation or distributions made by the Corporation as may be reasonably required by any of
the Shareholders at any time and from time to time.

 

     

    	- 28 -

 

    

		(7)	PSP shall be entitled (at its sole cost and expense) to have auditors engaged by PSP review, subject
to such auditors agreeing to comply with customary confidentiality restrictions, any financial statements prepared in respect of
the Corporation and all books and records and working papers related thereto; provided that any such reviews shall be scheduled
upon reasonable advance notice by PSP and shall occur during normal business hours and shall be conducted in a manner not to unreasonably
interfere with the business and operations of the Corporation or PEGI and its Affiliates. Where the right to conduct any such review
are subject to obligations of PEGI (or its Affiliates), the Corporation or the Corporation to, or limitations imposed by, any joint
venture partners or contractual counterparties of the Corporation, the foregoing review rights of PSP will be subject to all such
limitations and to full compliance by PEGI, the Corporation and PSP of all such obligations.

 

		7.4	Accounting Principles

 

All calculations, reports,
Financial Statements and projections required to be made or prepared by or in respect of the Corporation will be made or prepared
in accordance with GAAP.

 

		7.5	Tax Returns

 

The Corporation will
prepare and file all tax returns and related information for the Corporation and will pay out all taxes and other governmental
charges due to be paid from time to time to the applicable Governmental Agency. The Corporation will provide to each Shareholder
for review the annual corporate tax returns of the Corporation thirty (30) days prior to the filing due date set by the applicable
Governmental Agency. Such Shareholders will then have fifteen (15) days to review and comment on such corporate tax returns from
receipt thereof in accordance herewith. GST returns prepared by the Corporation will not be subject to review by the Shareholders
prior to the filing thereof with the applicable Governmental Agency, however, GST returns that have already been filed by the Corporation
will be provided to any Shareholder for review upon reasonable request by such Shareholder.

 

Article 8

THIRD PARTY AGREEMENTS

 

		8.1	Pattern O&M Contract

 

Pattern has caused
the O&M Provider to provide operation and maintenance services to the Project in accordance with the O&M Contract between
the O&M Provider and the Partnership. Pattern will, or will cause the O&M Provider to, as applicable, make available in
Toronto during normal business hours and, to the extent practicable, by remote electronic access, all records relating to the operation
and maintenance services provided under the O&M Contract.

 

		8.2	Pattern PAA

 

Pattern has caused
the PAA Provider to provide Administration Services to the Project, the Partnership, and the Corporation in accordance with any
PAA between the PAA Provider and the Corporation, on its own behalf and as general partner of the Partnership. Pattern will, or
will cause the PAA Provider, as applicable, to make available to the Shareholders the ledgers and all

 

     

    	- 29 -

 

    

books and records relating
to the Project in Toronto during the normal business hours and, to the extent practicable, by remote electronic access.

 

Article 9

CONFIDENTIALITY

 

		9.1	Confidentiality

 

		(1)	Subject to the provisions of this ‎Section 9.1, each Shareholder shall, and shall cause its
Affiliates and its and their Representatives to, keep confidential all information, documentation and records obtained from the
Corporation, its Affiliates or their respective Representatives as well as any information arising out of any Shareholder’s
access to the books and records of the Corporation, its Affiliates or their respective Representatives (collectively, the “Confidential
Information”); provided that except as set forth in ‎Section 9.1(2), nothing herein shall restrict or prohibit any
Partner from disclosing Confidential Information to its Representatives, in each case who first are instructed to maintain Confidential
Information confidential on substantially similar terms as those contained in this ‎Section 9.1(1); provided, further, that
such Partner shall be liable for any breach of this ‎Section 9.1 by any such Person as if such Partner had itself committed
such breach. “Confidential Information” shall not include: (1) public information or information in the public
domain at the time of its receipt by PSP or its Representatives; (2) information which becomes public through no fault or act of
PSP or its Representatives; or (3) information received by PSP or its Affiliates in good faith from a third party lawfully in possession
of the information and not in breach of any confidentiality obligations. PSP acknowledges that it is aware that (i) Confidential
Information and Competitively Sensitive Information (as defined below) contains material, non-public information regarding the
Corporation and its Affiliates and PEGI and (ii) United States and Canadian securities laws prohibit any persons who have material,
non-public information from purchasing or selling securities of a company using such information or from communicating such information
to any Person (including its Affiliates) under circumstances in which it is reasonably foreseeable that such Person is likely to
purchase or sell such securities in reliance upon such information. PSP further confirms that it has in place internal information
protection mechanisms to prevent unauthorized use of the Confidential Information and Competitively Sensitive Information.

 

		(2)	“Competitively Sensitive Information” shall mean information regarding the Corporation
or its Affiliates that PEGI determines that one or more Affiliates of PSP could reasonably be expected to use to compete with PEGI.
Notwithstanding anything to the contrary in this Agreement (including Section Article 7), in no event shall PSP be entitled
to receive Competitively Sensitive Information, and PSP shall, and shall cause its Affiliates to, maintain any Competitively Sensitive
Information of which any of their Representatives is or becomes aware in strict confidence; provided that the Corporation shall
provide PSP with a commercially reasonable description of the nature of any Competitively Sensitive Information that would otherwise
have been provided to PSP but for this ‎Section 9.1(2) and shall use commercially reasonable efforts to provide substitute
disclosure to PSP that, to the greatest extent practicable under the circumstances, will enable PSP to assess the applicable opportunity
relating to the Corporation or its

 

     

    	- 30 -

 

    

Affiliates
in substantially the same manner as if PSP had full access to such Competitively Sensitive Information and that is otherwise reasonably
satisfactory to PSP.

 

		(3)	Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prevent
or restrict any Shareholder or any of its Affiliates from disclosing, without the agreement of the Corporation or its Affiliate,
as applicable: (a) Confidential Information required to be disclosed under any Applicable Law (including applicable securities
laws) or the rules of any securities exchange; (b) Confidential Information required to be disclosed to its lenders or other creditors
on a confidential basis; provided that in no event shall this clause (b) permit the disclosure of any Competitively Sensitive Information.
Any Shareholder disclosing Confidential Information, as applicable in accordance with this ‎Section 9.1 shall use reasonable
efforts to (i) advise the Corporation and the other Shareholders of the details of the required disclosure and (ii) if permitted
by Applicable Law, obtain the comments of the Corporation and such other Shareholders on the wording of the proposed disclosure
prior to making such disclosure.

 

		(4)	Notwithstanding anything to the contrary in this Agreement, in no event shall PSP, any of its Affiliates,
or any of their respective Representatives, share any Confidential Information or Competitively Sensitive Information with any
portfolio companies or other investments of PSP (or any of their respective Representatives other than employees of PSP who are
acting in their capacity as Representatives of PSP and do not use such information for any purpose other than in furtherance of
the transactions contemplated by this Agreement) and PSP shall, and shall cause its Affiliates that receive Confidential Information
or Competitively Sensitive Information to, use customary information barriers to ensure that no portfolio company or other investment
of PSP or any of their respective Representatives (other than employees of PSP who are acting in their capacity as Representatives
of PSP and do not use such information for any purpose other than in furtherance of the transactions contemplated by this Agreement)
has access to any Confidential Information or Competitively Sensitive Information.

 

		(5)	This Agreement will not be construed as granting expressly or by implication during its terms or
thereafter any interest in or rights or license with respect to any Confidential Information and Competitively Sensitive Information
disclosed pursuant to this Agreement or otherwise by or on behalf of the Corporation and its Affiliates.

 

		(6)	In the event of a breach of a Shareholder’s obligations under this Section 9.1, the Shareholder
must, as soon as practicable following discovery of the breach, give written notice to the Corporation of the nature of the breach.
The Shareholder must immediately, and upon consultation with the Corporation, take all necessary reasonable steps to limit the
extent of the breach.

 

		(7)	Disclosure or use of Confidential Information and Competitively Sensitive Information contrary
to, or other breach of, this Agreement, or any other failure to comply with the terms and conditions of this Agreement by a Shareholder,
will give rise to irreparable injury to the Corporation and its Affiliates, inadequately compensable in damages. The Shareholders
acknowledge and agree that the Corporation and its Affiliates, as applicable, may, in addition to any other remedy and in conjunction
with Section 13.21, enforce the performance of this Agreement by way of injunction or specific performance upon application to
a court of competent jurisdiction without proof of actual damages

 

     

    	- 31 -

 

    

(and without
the requirement of posting a bond or other security). The rights and remedies provided in this Agreement are cumulative and are
in addition to, and not in substitution for, any other rights and remedies available at law or equity.

 

		9.2	Public Announcements

 

Each Shareholder shall,
and shall cause its Affiliates, to consult with the other Shareholder and provide that other Shareholder a reasonable opportunity
to comment before issuing any press release or making any other public announcement regarding the other Shareholder, provided that
(i) in the case of any disclosure required by Applicable Law or stock exchange rule, such consultation and opportunity to comment
shall only be required to the extent reasonably practicable under the circumstances and (ii) no consultation and opportunity to
comment shall be required with respect to any disclosure that is substantially similar to prior public disclosure made in compliance
with the terms of this Agreement.

 

		9.3	Subsidiaries as Third Party Beneficiaries

 

The provisions of this
Article 9 will enure to the benefit of the Corporation and its Subsidiaries notwithstanding that such Subsidiaries are not
parties hereto.

 

Article 10

GENERAL SALE PROVISIONS

 

		10.1	Warranties of Seller

 

Subject to the applicable
limitations set forth in Article 6, each Shareholder shall do all such acts or things, including the execution of any Share
transfers, that may be necessary to effect the transfer of any Shares to another Shareholder or a Third Party pursuant to this
Section 10.1. For greater certainty, in respect of a proposed Transfer from one Shareholder to another Shareholder, the selling
Shareholder shall cause any such Transfer to be effected by way of a simplified transfer agreement with representations and warranties
restricted to ownership of the Shares to be transferred, enforceability of the Transfer, corporate capacity, authority and authorization,
and receipt of necessary consents to effect the Transfer.

 

		10.2	Closing

 

Each Transfer of Shares
between a seller and a buyer will, unless the seller and the buyer otherwise agree, be closed at the offices of the solicitors
of the Corporation at 10:00 a.m. on the closing date specified in accordance with this Agreement.

 

		10.3	Closing Conditions

 

At the time of closing
of any Transfer of any Shares between a seller and a buyer under this Agreement, the seller will table:

 

		(a)	a certificate or certificates representing the Shares being Transferred by the seller, duly endorsed
in blank for transfer or accompanied by a duly executed stock power of transfer in appropriate form;

 

		(b)	a release of any Encumbrances on the Shares being Transferred;

 

     

    	- 32 -

 

    

		(c)	either a certificate of the seller stating that the seller is not a non-resident of Canada for
the purposes of the Income Tax Act or a certificate issued by the Minister of National Revenue pursuant to section 10.6 of the
Income Tax Act with respect to the proposed disposition of property by a non-resident of Canada; and if the seller fails to deliver
such certificate, or if the purchase price for the Shares being sold is greater than the certificate limit shown in the certificate
issued by the Minister of National Revenue, then the buyer will be entitled to deduct or withhold from the purchase price and to
remit to the Receiver General of Canada the amount for which the buyer, in its reasonable determination, is liable pursuant to
the provisions of section 10.6 of the Income Tax Act in respect of the Transfer of the Shares being Transferred; and

 

		(d)	the resignation(s), as a Director, of the seller’s appointee(s) to the Board.

 

		10.4	Payment

 

The buyer will pay
for the Shares being purchased pursuant to this Agreement by a draft drawn on, or a cheque certified by, or a wire transfer initiated
by a Canadian or U.S. chartered bank or trust company.

 

		10.5	Allocation of Purchase Price

 

Unless otherwise specified
herein, on any Transfer of Shares the allocation of the purchase price for such Shares will be to each Share, equally per Share.

 

		10.6	Indebtedness between Seller and the Corporation

 

		(1)	If, on the date of closing of any sale and purchase of all of the Shares of a seller, the seller
is indebted to the Corporation or any Subsidiary or has failed to return any property of the Corporation or any Subsidiary, then,
unless the Corporation and the seller otherwise agree in writing, the buyer will at the time of closing of such purchase and sale
pay to the Corporation the purchase price payable for the Shares being sold and the Corporation, acting reasonably, will apply
such purchase price to repayment of the indebtedness of the seller to the Corporation or any Subsidiary, as the case may be, and,
if applicable, retain an amount equivalent to the fair market value of the property of the Corporation or any Subsidiary, as the
case may be, as security for the return of such property. If the seller sells all of his Shares and the indebtedness of the seller
to the Corporation or any Subsidiary exceeds the purchase price for the Shares being sold, then the seller will at the time of
closing pay the balance of such indebtedness to the Corporation to retire such indebtedness. If the purchase price for the Shares
being sold exceeds the indebtedness of the seller to the Corporation or any Subsidiary, the Corporation will pay the balance to
the seller at the time of closing of such sale and purchase less, if applicable, such amount as it may retain, acting reasonably,
equivalent to the fair value of the property of the Corporation or any Subsidiary, as the case may be, as security for the return
of such property.

 

		(2)	If, on the date of closing of any sale and purchase of all of the Shares of a seller, the Corporation
or any Subsidiary is indebted to the seller, the Corporation or such

 

     

    	- 33 -

 

    

Subsidiary
will, at the time of closing, repay such indebtedness at its face value plus accrued and unpaid interest, if any.

 

Article 11

ISSUE OF ADDITIONAL SHARES

 

		11.1	Issuance of Shares

 

Except as contemplated
in Section 3.3, no new class of Shares or other securities granting rights, preferences or privileges that differ from the rights,
preferences and privileges of the Common Shares will be created by the Corporation.

 

Article 12

REPRESENTATIONS AND WARRANTIES

 

		12.1	Representations and Warranties of the Shareholders

 

Each Shareholder hereby
represents and warrants as follows, and acknowledges and confirms that the other Parties are relying on such representations and
warranties in entering into this Agreement:

 

		(a)	Qualification. It is a corporation, or other legal entity, duly incorporated or formed and
existing under the laws of its jurisdiction of incorporation or formation and has the corporate or other power to enter into and
perform its obligations under this Agreement. It has all governmental and regulatory licences, registration and approvals required
by Applicable Law as may be necessary to perform its obligations under this Agreement.

 

		(b)	Authorization. The execution and delivery of and performance by it of this Agreement and
the consummation of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or other
action on the part of the Shareholder.

 

		(c)	Validity of Agreement. The execution and delivery of and performance by the Shareholder
of this Agreement:

 

		(i)	will not (or would not with the giving of notice, the lapse of time or the happening of any other
event or condition) result in a breach or violation of or a conflict with, or allow any other Person to exercise any rights under,
any of the terms or provisions of its articles, by-laws or other constating documents or governing agreements;

 

		(ii)	will not (or would not with the giving of notice, the lapse of time or the happening of any other
event or condition) result in a breach or violation of or a conflict with, or allow any other Person to exercise any rights under
any contracts or instruments to which the Shareholder is a party or pursuant to which any of the Shareholder’s assets may
be affected; and

 

		(iii)	will not result in the violation of any Applicable Law.

 

     

    	- 34 -

 

    

		(d)	Execution and Binding Obligation. This Agreement has been duly executed and delivered by
the Shareholder and constitutes a legal, valid and binding agreement of each Shareholder enforceable against it in accordance with
its terms, subject only to any limitation under Applicable Laws relating to (i) bankruptcy, winding-up, insolvency, arrangement
and other laws of general application affecting the enforcement of creditors’ rights, and (ii) the discretion that a court
may exercise in the granting of equitable remedies.

 

		(e)	Title to Shares. The Common Shares set out opposite the Shareholder’s name in Schedule
A, which shall be updated by the Board from time to time, are owned by the Shareholder as the registered and beneficial owner with
good title, free and clear of all liens, other than those restrictions on transfer, if any, contained in the Articles.

 

		(f)	Residence. Unless otherwise disclosed in writing to the Corporation, the Shareholder is
not a non-resident of Canada for the purposes of the Income Tax Act or is, if a partnership, a “Canadian partnership”
for the purposes of the Income Tax Act.

 

		12.2	Survival

 

The representations,
warranties and covenants of the Parties contained in this Article 12 survive the execution and delivery of this Agreement
and continue in full force and effect with respect to each Party until it ceases to be bound by the provisions of this Agreement.

 

Article 13

GENERAL

 

		13.1	Actions in Accordance with Agreement

 

Each Shareholder will
vote its Shares to give effect to this Agreement whether at a meeting of the Shareholders or by written resolution of the Shareholders.

 

		13.2	Corporation Consent

 

The Corporation consents
to this Agreement and is governed by its terms.

 

		13.3	Agreement to be Bound

 

Each Person who becomes
a Shareholder must concurrently with becoming a Shareholder execute and deliver to the Corporation a counterpart copy of this Agreement
or a written agreement in form and substance satisfactory to the Parties, agreeing to be bound by this Agreement, including making
the representations and warranties contained in Article 12.

 

		13.4	Conflict with Articles

 

In the event of any
inconsistency between this Agreement and the Articles, this Agreement will govern to the extent of the inconsistency and, at the
request of any Party, the Parties will forthwith make all changes to the Articles as are necessary and lawful to render them not
inconsistent with this Agreement.

 

     

    	- 35 -

 

    

		13.5	Entire Agreement

 

This Agreement constitutes
the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written which shall be deemed to terminate on the date hereof and shall thereafter
have no further effect upon the Parties, other than the Partnership Agreement, which will continue in force and effect. There are
no conditions, representations, warranties or other agreements between the Parties with respect to the subject matter hereof, whether
oral or written, express or implied, statutory or otherwise, except as specifically set out in this Agreement and the Partnership
Agreement.

 

		13.6	Amendment

 

This Agreement may
be amended only by a written instrument signed by all of the Shareholders.

 

		13.7	Rights of Set-Off

 

Notwithstanding anything
in this Agreement to the contrary, the Corporation shall have the right to set off against any amount that would otherwise have
been paid to a Shareholder hereunder, any amount owing by the Shareholder to the Corporation, including any amount owing as a result
of a breach by the Shareholder of its obligations hereunder.

 

		13.8	Waiver

 

A waiver of any default,
breach or non-compliance under this Agreement is not effective unless it is in writing and signed by the Party to be bound by the
waiver. No waiver will be inferred from or implied by any failure to act or delay in acting by a Party in respect of any default,
breach or non- compliance or by anything done or omitted to be done by that Party. The waiver by a Party of any default, breach
or non-compliance under this Agreement will not operate as a waiver of that Party’s rights under this Agreement in respect
of any continuing or subsequent default, breach or non-compliance, whether of the same or any other nature.

 

		13.9	Governing Law

 

This Agreement will
be construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein
(without reference to conflicts of law principles). Each of the Parties irrevocably attorns to the jurisdiction of the courts of
the Province of British Columbia but nothing in this Agreement will preclude any Party from bringing suit or taking other legal
action in any other jurisdiction.

 

		13.10	Severability

 

Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction will, as to that jurisdiction, be ineffective to the extent of
such prohibition or unenforceability and will be severed from the balance of this Agreement, all without affecting the remaining
provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

     

    	- 36 -

 

    

		13.11	Time of Essence

 

Time will be of the
essence of this Agreement in all respects.

 

		13.12	Further Assurances

 

Each Party will promptly
do, execute and deliver or cause to be done, executed and delivered all further acts, documents and things in connection with this
Agreement, that any other Party may reasonably require for the purpose of giving effect to this Agreement.

 

		13.13	Notice

 

		(1)	Any notice or other communication required or permitted to be given under this Agreement will be
in writing and will be effectively given and made if delivered or sent by facsimile to the applicable address or facsimile number
set out below:

 

		(i)	to Pattern:

 

c/o Pattern Energy
Group Inc.

Pier 1, Bay 3 

San Francisco,
CA 94111

 

		Attention:	General Counsel

		Facsimile:	415-362-7900

 

		(ii)	to PSP:

 

Public Sector Pension Investment
Board

1250 René-Lévesque Blvd. West

Suite 1400

Montreal, Québec H3B 5E9

 

		Attention:	Managing Director, Infrastructure Investments

		Email:
	vertuousenergy@investpsp.ca and legalnotices@investpsp.ca

 

with a copy (which shall not
constitute notice) to:

 

Davies Ward Phillips & Vineberg
LLP

 

1501, avenue McGill College

26th Floor

Montréal, Québec H3A 3N9

 

		Attention:	Franziska Ruf

		Email:
	fruf@dwpv.com

 

     

    	- 37 -

 

    

		(iii)	to the Corporation:

c/o Pattern Energy Group Inc.

Pier 1, Bay 3

San Francisco, CA 94111

 

		Attention:
	Attention:General Counsel

		Facsimile:
	415-362-7900

 

		(2)	Any notice or other communication so given will be deemed to have been given and received on the
day of delivery, if delivered, or on the day of faxing, if faxed, provided that such day is a Business Day and such notice or other
communication is so delivered or faxed by 4:00 p.m. (local time at the place of receipt) on such day. Otherwise, such notice or
communication will be deemed to have been given and received on the next following Business Day. Any such notice or other communication
given in any other manner will be deemed to have been given and received only upon actual receipt. Without in any way limiting
the foregoing, each party shall, to the extent possible, send a copy by e-mail of each notice, request, demand or communication
given in accordance with the foregoing to each recipient thereof; provided that the sending of (or failure to send) a copy of such
notice, request, demand or communication by e-mail shall in no way affect the validity of such notice, request, demand or communication
or the interpretation as to when such notice, request, demand or communication is deemed to be received pursuant to this Section
13.13.

 

		(3)	Any Party may from time to time change its address, contact name or facsimile number under this
Section 13.13 by notice to the other Parties given in the manner provided by this Section 13.13.

 

		13.14	Benefit/Binding

 

This Agreement will
enure to the benefit of and be binding on the Parties and their respective successors and permitted assigns.

 

		13.15	Dispute Resolution Procedure

 

Except as otherwise
provided for in Section 2.8 or Section 9.1(7), if any dispute, claim, question or differences arises out of or in relation to this
Agreement, or any breach hereof, (a “Dispute”) the Parties to this Agreement shall each use commercially reasonable
efforts to settle the Dispute (the “Initial Good Faith Discussions”). Notwithstanding the foregoing, if the
Dispute is not resolved within ten (10) days of commencing such Initial Good Faith Discussions, the Parties shall refer such Dispute
to their respective senior representatives, who shall in turn use commercially reasonable efforts to settle the (the “Escalated
Good Faith Discussions”). If such Dispute remains unresolved following the date that is ten (10) days following the commencement
of the Escalated Good Faith Discussions, any Party may, following the delivery of written notice to the other Party or Parties,
as applicable, commence an action in respect of the Dispute.

 

     

    	- 38 -

 

    

		13.16	No Right to Employment

 

Neither this Agreement
nor any purchase of Shares pursuant to the provisions of this Agreement will create, or be construed or deemed to create, any right
to employment in favour of any Person by the Corporation or any of the Subsidiaries.

 

		13.17	Assignment

 

No Party may assign
or transfer, whether absolutely, by way of security or otherwise, all or any part of its rights or obligations under this Agreement
without the prior consent of all of the other Parties or in accordance with this Agreement, except where such assignment or transfer
is being made together with the Transfer of its Shares in accordance with this Agreement or where such assignment is required pursuant
to the Project Financing.

 

		13.18	Legend on Certificates

 

All certificates representing
Shares will have a legend endorsed on them substantially as follows:

 

“The Corporation
and the securities represented by this certificate are subject to the terms and conditions of a Shareholder Agreement made as of
the 10th day of August, 2017, as amended from time to time, which agreement contains restrictions on the right of the
holder to sell, assign, dispose of, exchange, pledge, grant an encumbrance over, hypothecate or otherwise transfer the securities
represented by the certificate. Notice of the terms and conditions of the Shareholder Agreement is hereby given.”

 

		13.19	Subdivision, Consolidation, etc. of Shares

 

The provisions of this
Agreement will apply mutatis mutandis to any securities into which the Shares or any of the Shares may be converted or changed,
to any securities of the Corporation resulting from a reclassification, subdivision or consolidation of any Shares, to any securities
of the Corporation which are received by the Shareholders as a stock dividend or as a result of a stock split, stock consolidation,
stock issuance, reverse stock split, recapitalization or reclassification, and to any securities of the Corporation or of any successor
body corporate which may be received by the Shareholders on an amalgamation, reorganization, merger or combination of the Corporation.

 

		13.20	Termination of Agreement and Survival

 

This Agreement will
come into force and be effective as of and from the date of this Agreement and will continue in full force and effect until the
earliest of:

 

		(a)	the date this Agreement is terminated by written agreement of the Parties; and

 

		(b)	the date all of the Shares are owned by one Shareholder, provided that if one Shareholder becomes
the owner of the Shares pursuant to Article 5, this Agreement shall not terminate and shall continue in full force and effect
until such time as it is otherwise terminated in accordance with the terms of this Section 13.20.

 

     

    	- 39 -

 

    

Notwithstanding the
foregoing, the provisions of Article 9 and other provisions stated to survive termination will survive any termination of
this Agreement.

 

		13.21	Remedies

 

The Parties acknowledge
and agree that all restrictions contained in this Agreement are reasonable and valid and that all defences to the strict enforcement
of such restrictions are hereby waived, and that the rights, privileges, restrictions and conditions set forth in this Agreement
are special and unique such that a breach of any such rights, privileges, restrictions or conditions cannot adequately be compensated
for by an award of damages. Accordingly, any Party will be entitled to temporary and permanent injunctive relief and to an order
for specific performance against every other Party that is in breach of this Agreement without having to prove damages. Any remedy
this Agreement sets forth or contemplates will be in addition to and not in substitution for or dependent upon any other remedy.

 

		13.22	Withholding

 

Anything to the contrary
notwithstanding, all payments that the Corporation or a Subsidiary is required to make under this Agreement to a Shareholder will
be subject to withholding of such amounts relating to income taxes, employment insurance premiums, Canada pension plan contributions,
workers’ compensation premiums, other taxes and other amounts as the Corporation or a Subsidiary may reasonably determine
it must withhold pursuant to any Applicable Law. In lieu of withholding such amounts, in whole or in part, the Corporation or a
Subsidiary may, in its sole discretion, accept other provision for payment of taxes as required by Applicable Law, provided it
is satisfied that all requirements of law affecting its responsibilities to withhold such amounts have been satisfied.

 

		13.23	Expenses

 

Each Shareholder will
pay its own legal and other costs and expenses incurred in connection with the negotiation and finalization of this Agreement.

 

		13.24	Independent Advice

 

Each of the Shareholders
acknowledges that it has received or waived the opportunity to receive independent legal and tax advice in connection with this
Agreement and with owning its Shares.

 

		13.25	Counterparts

 

This Agreement may
be executed by facsimile or in portable document format (pdf) and delivered electronically and in two or more counterparts, each
of which will be deemed an original and all of which will constitute one and the same instrument.

 

		13.26	Corporate Opportunities, Waiver of Fiduciary Duties, Etc.

 

To the maximum extent
permitted by Applicable Law, no Shareholder of the Corporation will have any fiduciary duties to any other Shareholder of the Corporation,
including as may result from a conflict of interest between any of PEGI, Pattern, PSP and the Corporation.

 

     

    	- 40 -

 

    

(remainder of page intentionally blank)

 

     

     

    

IN WITNESS WHEREOF
this Agreement has been duly executed and delivered as of the date first written above.

 

	 	 	MEIKLE WIND ENERGY CORP.
	 	 	 

	 	 	Per:	/s/ Colin Edwards
	 	 	 	Name: Colin Edwards
	 	 	 	Title: Director
	 	 	 	 

	 	 	PATTERN CANADA FINANCE COMPANY ULC
	 	 	 

	 	 	Per:	/s/ Colin Edwards
	 	 	 	Name: Colin Edwards
	 	 	 	Title: Director
	 	 	 	 

	 	 	VERTUOUS ENERGY CANADA INC.
	 	 	 

	 	 	Per:	/s/ Jean Daigneault
	 	 	 	Name: Jean Daigneault
	 	 	 	Title: Vice President
	 	 	 	 
	 	 	 	/s/ Mélanie Bernier
	 	 	 	Name: Mélanie Bernier
	 	 	 	Title: Assistant Secretary

     

     

    

Schedule
“A”

CURRENT INVESTMENT AND SHAREHOLDINGS

 

	Shareholder	Number of Shares
	Pattern Canada Finance Company ULC	70 Common Shares
	Vertuous Energy Canada Inc.	30 Common Shares

     

     

    

Schedule
“B”

MATTERS REQUIRING shareholder APPROVAL

 

		(a)	any amendment of the Partnership Agreement or the Articles (or the articles, by-laws or equivalent
constituting document of any of the Subsidiaries of the Partnership or the Corporation), other than (i) as required by the applicable
third-party partnership agreement, or (ii) amendments that are required by Applicable Law or are of a clerical or “housekeeping”
nature;

 

		(b)	(A) the incorporation or acquisition of a Subsidiary of the Partnership or the Corporation or the
disposition of any shares of a Subsidiary of the Partnership or the Corporation, (B) the Partnership or the Corporation or a Subsidiary
of either of them entering into any partnership, joint venture or similar arrangement with any other Person, or (C) the purchase
of any business by the Partnership or the Corporation (or any of their Subsidiaries) or acquisition by shares or purchase by the
Partnership or the Corporation (or any of their Subsidiaries) of all or substantially all the assets of any other Person;

 

		(c)	the sale (or entry into of binding agreements to that effect), lease, exchange or other disposition
of (i) all or substantially all of the assets of the Partnership or the Corporation (or any of their Subsidiaries), or (ii) assets
of the Partnership or the Corporation (or any of their Subsidiaries) that would result in a material adverse effect on the power
generation of the Project, or the granting of an option or right to such effect;

 

		(d)	initiating or otherwise participating in voluntary winding-up or bankruptcy proceedings of the
Partnership or the Corporation (or any of their Subsidiaries);

 

		(e)	any merger, amalgamation or consolidation or the entering into of any agreement, arrangement or
understanding to merge, amalgamate or consolidate, the Partnership or the Corporation (or any of their Subsidiaries) with any Person;

 

		(f)	any change to the equity capital structure of the Partnership or the Corporation (whether by subdivision,
consolidation or reclassification), the issuance or allotment of any equity or the granting of any right, option or privilege to
acquire any equity or the redemption or repurchase by the Partnership or the Corporation of any equity, other than (i) as contemplated
by the Partnership’s or the Corporation’s constating documents (including the Partnership Agreement), including any
purchase rights or equity dilution provisions (including to fund non-discretionary expenses or amounts necessary to comply with
legal obligations), (ii) as contemplated under applicable third-party partnership agreements, or (iii) amendments that are required
by Applicable Law or are of a clerical or “housekeeping” nature;

 

		(g)	the taking or institution of any proceedings for the continuance, winding up, liquidation, reorganization
or dissolution of the Partnership or the Corporation (or any of their Subsidiaries) in each case under applicable debtor relief
laws, other than as required by Applicable Law;

 

     

     

    

		(h)	(A) any incurrence of any indebtedness by the Partnership or the Corporation (or their Subsidiaries)
for borrowed money or granting of any lien or security interest by the Partnership or the Corporation (or their Subsidiaries) in
respect of any indebtedness for borrowed money, including any financing or refinancing, that is not in existence as of the date
hereof other than (i) in the case of an amendment to or refinancing of existing indebtedness of the Partnership, where the amended
or refinanced indebtedness would not result in a capital call or be in excess of the total amount of the existing indebtedness
outstanding at the time of the refinancing that would be amended or extinguished by the refinancing plus all applicable fees, costs
and expenses including breakage costs incurred in connection with such new financing or the repayment of the existing indebtedness;
or (ii) indebtedness in an amount less than 2% of the book value of assets of the Partnership that is required to meet the Partnership’s
obligations that cannot reasonably be expected to be met with distributable cash flow of the Partnership or that can be satisfied
with the posting of a letter of credit or other security, (B) making any loan for borrowed money or entering into any external
borrowing arrangements where the Partnership or the Corporation (or any of their Subsidiaries) acts as a lender, (C) the Partnership
or the Corporation (or their Subsidiaries) entering into any derivative transaction or amending in any material manner or terminating
any derivative transaction other than in connection with a transaction described in clauses (A)(i) or (A)(ii) above and other than
short-term energy hedge, renewable attributes and/or capacity transactions, or (D) any incurrence of any indebtedness for borrowed
money or granting of any security interest or entering into any other borrowing arrangements, in each case by the Partnership or
the Corporation (or their Subsidiaries) with any Related Party;

 

		(i)	the repayment of any loan or advance made by a Related Party to the Partnership or the Corporation
(or any of their Subsidiaries), other than in accordance with the terms agreed upon at the time the loan or advance was made;

 

		(j)	the granting of any security on the assets of the Partnership or the Corporation (or any of their
Subsidiaries) other than (i) under a financing that is otherwise permitted hereunder, or (ii) customary liens created in the operation
of the Project such as liens for trade payables, mechanics, suppliers and warehouse liens, capital leases and tax liens;

 

		(k)	the guarantee or indemnification by the Partnership or the Corporation (or any of their Subsidiaries)
of, or the grant of security by the Partnership or the Corporation (or any of their Subsidiaries) for, the debts or obligations
of any third party, in each case other than customary guarantees or indemnities arising out of the ordinary course of business
of the Partnership or the Corporation (or their Subsidiaries);

 

		(l)	the guarantee or indemnification by the Partnership or the Corporation (or any of their Subsidiaries)
of, or the grant of security by the Partnership or the Corporation (or any of their Subsidiaries) for, the debts or obligations
of any Related Party;

 

		(m)	any change to the distribution policy of the Partnership or the Corporation provided for in this
Agreement or the Partnership Agreement;

 

    -ii-

     

    

		(n)	the Partnership or the Corporation (or their Subsidiaries) (A) entering into (on or after the date
hereof), causing the early termination of, or making material amendments to any (i) Project Agreement or (ii) applicable third-party
partnership agreements, or (B) causing the early termination of, or making material amendments to, any Related Party Contracts,
including the O&M Contract and PAA, except (x) in each case for new contracts, terminations and/or amendments that are required
by Applicable Law or to avoid a material default by the Partnership or the Corporation (or any of their Subsidiaries) or otherwise
preserve material rights of the Partnership or the Corporation (or any of their Subsidiaries) under a Project Agreement; provided
that agreements evidencing indebtedness described in clause (h) above that the General Partner is permitted to incur without consent
under Section 3.3 shall not require consent under this clause (n) or (y) in the case of clause (ii), as is required to give effect
to the exercise of options or rights under such agreements;

 

		(o)	the approval by the Partnership or the Corporation (or their Subsidiaries) of any capital expenditure
or series of related capital expenditures in an amount in excess of 2% of the book value of assets of the Partnership other than
as necessary to comply with Applicable Law, address an Emergency Situation or maintain an insurance policy relating to the Project;

 

		(p)	the initiation or settlement by the Partnership or the Corporation (or their Subsidiaries) of any
material litigation or material administrative proceeding;

 

		(q)	appointment and removal/replacement of auditors of the Partnership or the Corporation (or their
Subsidiaries), other than when such appointment, removal or replacement of auditors is designed to have the auditor of the Partnership
or the Corporation be the same as the auditor of PEGI;

 

		(r)	adoption of and changes to employee benefits arrangements or schemes of the Partnership or the
Corporation (or their Subsidiaries), except for non-material changes which are reasonable for Entities of the same size and nature
as the Partnership or the Corporation (or their Subsidiaries);

 

		(s)	the creation, modification or termination by the Partnership or the Corporation (or their Subsidiaries)
of any plan for the purchase of equity or other securities through the award of options to purchase equity, including a stock option
plan or similar program;

 

		(t)	any change to the accounting methods of the Partnership or the Corporation (or any of their Subsidiaries)
or to the fiscal year-end, other than (i) when such change to the accounting methods of the Partnership or the Corporation (or
any of their Subsidiaries) or to the fiscal year-end is designed to conform to the accounting methods or fiscal year-end of PEGI
or (ii) to comply with GAAP;

 

		(u)	any significant change in the scope or nature of the Business or the Partnership Business (including
the business of the Partnership’s or the Corporation’s Subsidiaries) and the entering into of any contract, agreement
or commitment that would result in a significant

 

    -iii-

     

    

change in the scope or nature
of the Business or the Partnership Business (including the business of the Partnership’s or the Corporation’s Subsidiaries);
and

 

		(v)	seeking to launch an initial public offering or the admission to trading on a recognized stock
exchange of the whole or any part of the Partnership’s issued securities (or Subsidiaries of the Partnership).

 

    -iv-

     

    

Schedule
“C”

PROJECT AGREEMENTS

 

i.  any
lease or other type of agreement granting long-term real property tenure rights that is material to the Project, taken as a whole.

 

ii.  applicable
third-party partnership agreements (including agreements with tax equity partners).

 

iii.  the
engineering, procurement and construction agreement, balance-of-plant construction contract or similar agreement and related guarantee
(but only to the extent adversely affecting the warranty provisions thereof).

 

iv.  the
turbine supply agreement or similar material equipment supply agreement and related guarantee (but only to the extent adversely
affecting the warranty provisions thereof).

 

v.  the
service and maintenance agreement or similar agreement entered into in respect of the wind turbines or any other material equipment.

 

vi.  long-term
power purchase agreement, long-term energy hedge agreement or similar agreement entered into with any off-taker to purchase electricity
or other products from the Partnership.

 

vii.  the
interconnection agreement.

 

viii.  agreements
evidencing indebtedness of the types described in clause (h) in Schedule B; provided that agreements evidencing indebtedness described
in clause (h) in Schedule B that the General Partner is permitted to incur without consent under Section 3.3 shall not require
consent under clause (n) in Schedule B.

 

ix.  any
other Contract that affects the Operating Period to which the Corporation on its own behalf or on behalf of the Partnership is
a party or by which such Person, or any of its assets is bound and that:

 

1.  limits
the freedom of the Corporation, the Partnership or any of their Subsidiaries to compete in any line of business or with any Person
or in any area or granting “most favored nation” or similar status, in a manner that is material to the Project, taken
as a whole;

 

2.  is
with Pattern Energy Group LP or any of its Affiliates that is material to the Project, taken as a whole; or

 

3.  the
entry into or loss of which would result in a material adverse effect.

 

“Operating
Period” means, in respect of the Project, the period commencing on COD.

 

    -v-SECOND AMENDED AND RESTATED PROMISSORY
NOTE

 

Salt Lake
City, Utah

 

	$7,746,717.00	August 8, 2017

 

WHEREAS,
Maker (as defined below) previously executed that certain Promissory Note dated May 30, 2014 (the “Initial Note”),
which Initial Note was amended and restated on December 31, 2015, in the principal amount of Eight Million Two Hundred Ninety-Six
Thousand Seven Hundred Seventeen and 22/100 Dollars ($8,296,717.22) for the benefit of Lender (as defined below) (the “Amended
and Restated Note”); 

 

WHEREAS,
Maker and Lender desire to amend and restate the Amended and Restated Note to, among other things, change the outstanding principal
amount due and owing therein, and Maturity Date (as defined herein); 

 

WHEREAS,
as of the date hereof, Maker has paid Lender all accrued and unpaid interest due and owing on the Amended and Restated Note through
December 31, 2016;

 

NOW,
THEREFORE, the Amended and Restated Note is hereby amended and restated in its entirety with this Note to read as follows:

 

TRONCO ENERGY CORPORATION,
a Delaware corporation, (“Maker”) for value received, promises and agrees to pay to the order of SUPERIOR
DRILLING PRODUCTS, INC., a Utah corporation or its assigns (herein called “Lender”
which term shall herein in every instance refer to the owner or holder of this Second Amended and Restated Promissory Note (“Note”)),
at 1583 S. 1700 E. Vernal, UT 84078, or at such other place as Lender may hereafter designate in writing, in lawful money of the
United States of America, the principal sum of SEVEN MILLION SEVEN HUNDRED FORTY SIX THOUSAND SEVEN HUNDRED SEVENTEEN and No/Dollars
($7,746,717.00) (the “Loan”), or so much thereof as may be outstanding from time to time under the terms and
limitations of the Seconded Amended and Restated Loan Agreement dated as of the date hereof by and between Lender and Maker (the
“Agreement”), together with interest accruing during the term hereof on the principal balance from time to time
outstanding until paid, at the prime rate of interest quoted by J.P. Morgan Chase Bank from time to time, plus one-quarter percent
(.25%). Interest shall be calculated on the average daily outstanding principal balance. All capitalized terms used herein and
not otherwise defined shall have the meanings set forth in the Agreement.

 

From
and after the date hereof, the outstanding principal balance of this Note and the Loan described in the Agreement is and shall
be a fixed term loan and no further advances will be made under the terms of this Note or under the terms of the Agreement, provided
however additional sums may be added to the principal balance of this Note, from time to time, as provided for hereinbelow. 

 

The
principal of this Note has been fully advanced to the Maker hereof prior to the date hereof.

 

Maker
shall repay the outstanding principal balance due (together with accrued interest thereon) under this Note paid as follows:

 

	 	(1)	An interest only payment on December 31, 2017 of all accrued interest as of such date; and
	 	 	 
	 	(2)	An interest only payment on December 31, 2018 of all accrued interest as of such date; and
	 	 	 
	 	(3)	An interest only payment on December 31, 2019 of all accrued interest as of such date; and
	 	 	 
	 	(4)	An interest only payment on December 31, 2020 of all accrued interest as of such date; and
	 	 	 
	 	(5)	An interest only payment on December 31, 2021 of all accrued interest as of such date; and
	 	 	 
	 	(6)	All principal and accrued, unpaid interest shall be due on December 31, 2022 (the “Maturity Date”).

 

    	 

    	 	 

    

 

All payments
made by Maker shall be applied in the following order:

 

	 	(1)	All accrued and unpaid interest; and
	 	 	 
	 	(2)	All outstanding and unpaid principal on the Note.

 

The
principal balance of this Note, all accrued but unpaid interest, and all other amounts due under this Note (collectively the “Indebtedness”),
may be prepaid, in whole or in part, at any time from and after the date of this Note, without premium or penalty. For the purposes
hereof, any prepayments upon the Indebtedness shall be applied in the manner and order as provided for in Section 2.4 of the Agreement.

 

TIME
IS OF THE ESSENCE IN REGARDS TO MAKER’S PAYMENT OBLIGATIONS HEREUNDER.

 

If
a payment on this Note shall become due on a Saturday, Sunday or public holiday under the laws of the State of Utah on which day
Lender is not open for business, such payment shall be made on the next succeeding business day of Lender, unless the effect of
such extension would be to carry the payment over to the next calendar month, in which case such payment shall be due on the preceding
business day of Lender, and such extension or reduction of time shall in such case be included in computing interest in connection
with such payment. All sums required to be paid hereunder shall be applied first to any sums expended by Lender to preserve or
protect the collateral securing this Note (including advances, if any, made to pay the taxes thereon), then to any reasonable attorneys’
fees incurred by Lender in enforcing the provision of this Note or any document securing same, if any, then to accrued interest
and then to principal, except that Maker may prepay any principal amount prior to its due date. Provided however, if at any time
Lender receives, from Maker or otherwise, any amount applicable to the Loan which is less than all amounts due and payable at such
time, Lender may apply that payment to amounts then due and payable in any manner and in any order determined by Lender, in Lender’s
discretion. Maker agrees that neither Lender’s acceptance of a payment from Maker in an amount that is less than all amounts
then due and payable nor Lender’s application of such payment shall constitute or be deemed to constitute either a waiver
of the unpaid amounts or an accord and satisfaction.

 

To
the extent permitted by applicable law, any payments due hereunder not received by Lender on or before the fifth (5th) day following
the date on which such payment is due shall bear interest from the date of notice to Maker of such nonpayment or other occurrence
which gives rise to such amount being owed to the Lender, until paid, equal to the prime rate of interest quoted by J.P. Morgan
Chase Bank from time to time, plus three percent (3%) per annum. Maker acknowledges that its failure to make timely payments will
cause Lender to incur additional expenses in servicing and processing the Loan evidenced by this Note, and that it is extremely
difficult and impractical to determine those additional expenses. Maker agrees that the late charge payable pursuant to this Paragraph
represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional
expenses Lender will incur by reason of such late payment. 

 

Neither
this Note nor any of the other Loan Documents shall be construed to create a contract for the use, forbearance or detention of
money requiring payment of interest at a rate greater than the maximum interest rate permitted to be charged under applicable law.
If any applicable law limiting the amount of interest or other charges permitted to be collected from Maker in connection with
the Loan is interpreted so that any interest or other charge provided for in any Loan Document, whether considered separately or
together with other charges provided for in any other Loan Document, violates that law, and Maker is entitled to the benefit of
that law, that interest or charge is hereby reduced to the extent necessary to eliminate that violation. The amounts, if any, previously
paid to Lender in excess of the permitted amounts shall be applied by Lender to reduce the unpaid principal balance of this Note.
For the purpose of determining whether any applicable law limiting the amount of interest or other charges permitted to be collected
from Maker has been violated, all indebtedness that constitutes interest, as well as other charges made in connection with the
indebtedness that constitute interest, shall be deemed to be allocated and spread ratably over the stated term of the Note. Unless
otherwise required by applicable law, such allocation and spreading shall be effected in such a manner that the rate of interest
so computed is uniform throughout the stated term of this Note.

 

    	2 

    	 	 

    

 

If
an Event of Default (as defined below) be made in the performance of Maker under this Note, then the Lender may, at Lender’s
option, declare the entire unpaid principal hereof and all accrued interest on this Note immediately due and payable without additional
notice, demand or presentment, all of which are hereby waived, and upon such Lender hereof shall have the right to foreclosure
or otherwise enforce all liens or security interest securing payment hereof, or any part hereof, and offset against this Note any
sum or sums owed by the Lender to Maker. Failure of the Lender to exercise this option shall not constitute a waiver of the right
to exercise the same upon the occurrence of a subsequent Event of Default.

 

For
purposes hereof, an “Event of Default” shall mean: 

 

	 	(1)	the failure by Maker to perform any obligation to pay principal or interest when due under the Note after receipt of written notice of such failure to pay and after the expiration of a five (5) day grace period;
	 	 	 
	 	(2)	the failure by Maker or any other obligor to perform any other obligation or to pay any other sum when due under the terms of the Note or any other Loan Document; or
	 	 	 
	 	(3)	Maker’s assignment for the benefit of creditors or becoming the subject of any voluntary of involuntary bankruptcy proceeding; or
	 	 	 
	 	(4)	The filing of any bankruptcy proceeding, either voluntary or involuntary by or against any Guarantor of this Note as same are described in the Agreement.

 

Except
as otherwise provided hereinabove, Maker and each surety, guarantor endorser and other party ever liable for payment of any sums
of money payable on this Note jointly and severally waive presentment and demand for payment, protest, notice of protest and non-payment
or dishonor, notice of acceleration, notice of intent to accelerate, notice of intent to accelerate, notice of intent to demand,
diligence in collecting, and grace, and consent to all extensions without notice for any period or periods of time and partial
payments, before or after Maturity, without prejudice to the Lender. The Lender shall similarly have the right to deal in any way,
at any time, with one or more of the foregoing parties without notice of any other party, and to grant any such party an extensions
of time for payment of any of said indebtedness, or to release part or all of the collateral securing this Note, or to grant any
other indulgences or forbearances whatsoever, without notice to any other party and without in any way affecting the personal liability
of any party hereunder. 

 

If
the Lender expends any effort in any attempt to enforce payment of all or any part or installment of any sum, either principal
and/or interest, due and the Lender, or if this Note is placed in the hands of an attorney for collection, or if it is collected
through any legal proceedings, Maker agrees to pay all reasonable collection costs and fees incurred by the Lender, including reasonable
attorney’s fees and expenses.

 

This
Note is made and is deemed performable at 1583 S. 1700 E. Vernal, UT 84078, and Maker and each surety, guarantor, endorser and
other party ever liable for payment of any sums of money on this Note, jointly and severally waive the right to be sued hereon
elsewhere. This Note shall be governed by and construed in accordance with the laws of the State of Utah.

 

Any
check, draft, money order or other instrument given in payment of all or any portion hereof may be accepted by the Lender and handled
in collection in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of the Lender
except to the extent that actual cash proceeds of such instruments are unconditionally received by the Lender and applied to this
indebtedness in the manner elsewhere herein provided.

 

    	3 

    	 	 

    

 

It
is the intention of the parties to comply strictly with applicable usury laws of the State of Utah, if any; accordingly, notwithstanding
any provision to the contrary in this Note or in any of the documents securing the payment hereof or otherwise relating hereto,
in no event shall this Note or such documents require or permit the payment, taking, reserving, receiving, collection or charging
of any sums constituting interest under applicable laws which exceed the maximum amount permitted by such laws. If any such excess
interest is called for, contracted for, charged, taken reserved or received in connection with the loan evidenced by this Note
or in any of the documents securing the payment hereof or otherwise relating hereto, or in any communication by Lender or any other
person to Marker or any other person, or in the event all or part of the principal or interest hereof shall be prepaid or accelerated,
so that under any of such circumstances or under any other circumstances whatsoever the amount of interest contracted for, charged,
taken, reserved, or received on the amount of principal actually outstanding from time to time under this Note shall exceed the
maximum amount of interest permitted by applicable usury laws, then in any such event it is agreed as follows: (i) the provisions
of this paragraph shall govern and control, (ii) neither the Maker nor any other person or entity now or hereafter liable for the
payment of this Note shall be obligated to pay the amount of interest permitted by applicable laws, (iii) any such excess which
is or has been received notwithstanding this paragraph shall be credited against the then unpaid principal balance hereof or, if
this Note has been or would be paid in full by such credit, refunded to Maker, and (iv) the provision of this Note and the document
securing the payment hereof and otherwise relating hereto, and any communication to Maker, shall immediately be deemed reformed
and such excess interest reduced, without the necessity of executing any other document, to the maximum lawful rate allowed under
applicable laws as now or hereafter construed by courts having jurisdiction hereof or thereof. The terms of this paragraph shall
be deemed to be incorporated in every Loan Document, and any communication relating to this Note and the Loan.

 

This
Note is secured. This Note is given in renewal and full substitution of that certain Amended and Restated Note.

 

This Note is dated as of
the date set forth first above. In the event of a conflict between this Note and the Agreement, the terms of the Agreement, shall
be deemed controlling.

 

NOTICE OF NO ORAL
AGREEMENTS. THIS DOCUMENT AND ALL OTHER LOAN DOCUMENTS RELATING TO THIS LOAN OR REFERRED TO ABOVE TOGETHER CONSTITUTE A WRITTEN
LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES RELATING TO THIS LOAN.

 

	 	 	MAKER:
	 	 	 
	 	 	TRONCO ENERGY
CORPORATION
	 	 	 
	 	By: 	/s/G.
    Troy Meier
	 	 	G.
    Troy Meier, President

 

    	4

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