Document:

Exhibit
10.7

 

 EXECUTION
VERSION

 

 

 

SPONSOR
SERVICES AGREEMENT

between

PATTERN ENERGY GROUP INC.

and

PUBLIC SERVICE PENSION INVESTMENT BOARD

Dated as of June 16, 2017

 

    

     

    

 EXECUTION
VERSION

 

TABLE
OF CONTENTS

 

 

 

Page

 

	Article 1

                                                                                Definitions

	Section
    1.01.   Definitions.	1
	Section
    1.02.   Construction.	1
	Article 2

                                                                                Engagement of PEGI

	Section
    2.01.   Engagement of PEGI.	2
	Section
    2.02.   Relationship.	2
	Section
    2.03.   PSP Project Entities.	2
	Article 3

                                                                                Term and Renewal

	Section
    3.01.   Term.	3
	Section
    3.02.   Renewal.	3
	Article 4

                                                                                Scope of Services

	Section
    4.01.   Services.	3
	Section
    4.02.   Third Party Service Providers.	3
	Section
    4.03.   Service Changes.	4
	Article 5

                                                                                Representation and Warranties

	Section
    5.01.   General.	4
	Section
    5.02.   PEGI Representations.	5
	Article 6

                                                                                Fees and Cost Reimbursement

	Section
    6.01.   Remuneration.	5
	Section
    6.02.   Reimbursable Expenses.	6
	Section
    6.03.   Payment Procedure.	7
	Section
    6.04.   PSP Access and Audit Rights.	8
	Section
    6.05.   Set-Off.	8
	Article 7

                                                                                PEGI Property

	Section
    7.01.   PEGI Property.	9
	Section
    7.02.   Further Assurances.	9

 

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	Article
                                         8

                                                                                Indemnification

	Section
    8.01.   Indemnification by PEGI.	9
	Section
    8.02.   Indemnification by PSP.	10
	Section
    8.03.   Indemnification Procedure.	10
	Section
    8.04.   Trustee and Agent.	11
	Section
    8.05.   Survival.	11
	Article
                                         9

                                                                                Termination

	Section
    9.01.   Termination by Either Party.	11
	Section
    9.02.   Termination by PSP.	12
	Section
    9.03.   Termination by PEGI.	13
	Section
    9.04.   Termination for Convenience.	13
	Section
    9.05.   Completion of Services at End of Term.	14
	Article
                                         10

                                                                                Standard
                                         of Performance

	Section
    10.01.   Prudent Service Provider Standard.	14
	Article
                                         11

                                                                                Limitations
                                         of Liability

	Section
    11.01.   Total Limitation of Liability.	14
	Section
    11.02.   Waiver of Consequential Damages.	15
	Section
    11.03.   General.	15
	Article
                                         12

                                                                                Notices

	Article
                                         13

                                                                                Confidentiality

	Section
    13.01.   General Confidential Information.	16
	Section
    13.02.   Limited Disclosure of Confidential Information.	17
	Article
                                         14

                                                                                Dispute
                                         Resolution

	Section
    14.01.   Procedure.	17
	Article
                                         15

                                                                                Miscellaneous

	Section
    15.01.   Execution.	18
	Section
    15.02.   Governing Law.	18
	Section
    15.03.   Amendments, Supplements, Etc.	19

 

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	Section
    15.04.   Headings.	19
	Section
    15.05.   Assignment.	19
	Section
    15.06.   Successors and Assigns.	20
	Section
    15.07.   Waiver.	20
	Section
    15.08.   Severability.	20
	Section
    15.09.   Construction.	20
	Section
    15.10.   Entire Agreement.	20
	Section
    15.11.   No Third-Party Beneficiaries.	20
	Section
    15.12.   Currency.	20
	Section
    15.13.   Survival.	20
	Section
    15.14.   Change in Law or Agreement.	20

 

	A	-	Schedule of Definitions
	B	-	Services
	C	-	Jointly Owned Companies
	D	-	Form of Accession Agreement

 

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SPONSOR
SERVICES AGREEMENT

 

This SPONSOR
SERVICES AGREEMENT (this “Agreement”), dated as of June 16, 2017 is between PATTERN ENERGY GROUP INC., a Delaware
corporation (“PEGI”), PUBLIC SERVICE PENSION INVESTMENT BOARD, an Entity having its registered office at 1250
Rene-Levesque Blvd. West, Suite 1400, Montreal, Quebec, H3B 5E9, Canada (“PSP”) and each PSP Project Entity
that may become a party to this Agreement from time to time in accordance with the terms hereof. PSP, PEGI and each PSP Project
Entity are sometimes referred to in this Agreement individually as a “Party” and collectively as the “Parties”.

 

R E
C I T A L S

 

WHEREAS,
Public Sector Pension Investment Board and PEGI have entered into that certain Joint Venture Agreement (the “Joint Venture
Agreement”), dated as of the date hereof, pursuant to which, among other things, PSP and PEGI have agreed to a framework
(the “Joint Acquisition Framework”) governing the acquisition and/or ownership of certain Subject Project Companies
(as defined in the Joint Venture Agreement) that may from time to time be jointly owned by PEGI or its Affiliates, on the one
hand, and a PSP Project Entity on the other (each, a “Jointly Owned Company”);

 

WHEREAS,
PSP, for and on behalf of each PSP Project Entity, wishes to engage PEGI, and PEGI wishes to accept such engagement, to provide
certain mutually agreed services to each PSP Project Entity with respect to the administration of the Joint Acquisition Framework
and the Jointly Owned Companies, in each case in accordance with the terms and conditions set forth herein;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth herein and of other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

 

Article
1

Definitions

 

Section
1.01.      Definitions. As
used in this Agreement, including the Recitals, all capitalized terms shall have the respective meanings given to them in
this Agreement and in the Schedule of Definitions attached as Exhibit A.Section 1.02.       Construction.
All references herein to any agreement shall be to such agreement as amended, supplemented or modified from time to time in
accordance with its terms. All references to a particular Entity shall include a reference to such Entity’s successors
and permitted assigns. The words “herein”, “hereof” and
“hereunder” shall refer to this Agreement as a whole and not to any particular section or subsection of
this Agreement. The singular shall include the plural and the masculine shall include the feminine and neuter, and vice
versa. The words “includes” or “including” shall be deemed to mean “including,
without limitation” or the correlative meaning.
All exhibits and schedules to this Agreement are

 

    

     

    

hereby incorporated
herein by reference and considered a part of this Agreement for all purposes.

 

Article
2

Engagement of PEGI

 

Section 2.01.     
Engagement of PEGI. PSP, for and on behalf of each PSP Project Entity, hereby engages PEGI as an independent contractor
to provide the Services as set forth in this Agreement with respect to each of the Jointly Owned Companies listed on Exhibit
C. PEGI accepts such engagement and agrees to perform such duties in accordance with the terms and conditions hereof. The
Parties agree that Exhibit C shall automatically be amended to include any newly acquired or Jointly Owned Companies or
any additional Projects acquired by any Jointly Owned Company. If any Project is held by a PSP Project Entity indirectly through
more than one intermediary entity, then the definition of “Jointly Owned Company” shall be deemed to include such
intermediary entities and the definition of Services shall be deemed to include services to such intermediary entities, to the
extent reasonably required.

 

Section 2.02.     
Relationship. This Agreement is intended to create certain contractual rights and obligations between the Parties
and is not intended, and the Parties agree that it does not, constitute any Party as the partner, agent or fiduciary of the other
Party for any purpose or create any partnership, agency, fiduciary or other similar relationship or association of profit among
the Parties or any of their respective Affiliates, employees, subcontractors, vendors or suppliers, or any of their respective
employees, and neither Party shall have any partnership, agency, fiduciary or other similar duties, liabilities or obligations
to the other Party or any of its Affiliates, employees, subcontractors, vendors or suppliers, or any of their respective employees,
relating to or arising from this Agreement. Neither PEGI nor any of its Affiliates, employees, subcontractors, vendors or suppliers,
or any of their respective employees shall be deemed to be employees or servants of PSP or any PSP Project Entity as a result
of this Agreement or of performing any Services hereunder, and no such Person shall, as a result of entering into this Agreement
or of performing any Services hereunder, have the right, authority, obligation or duty to assume, create or incur any liability
or obligation, express or implied, against, in the name of, or on behalf of PSP or any PSP Project Entity, except to the extent
expressly contemplated by and in accordance with this Agreement. To the fullest extent permitted by applicable Law, except as
contemplated by the Joint Venture Agreement and any ancillary agreements contemplated thereby, each Party, on behalf of itself
and its Affiliates, waives and renounces any right, interest or expectancy in, or in being offered an opportunity to participate
in, business opportunities that are from time to time presented to it or its Affiliates or of which it or its Affiliates gains
knowledge.

 

Section 2.03.     
PSP Project Entities. The PSP Project Entity that holds a direct interest in a Jointly Owned Company shall execute
and deliver to PEGI an accession agreement, in the form attached to this Agreement as Exhibit D, pursuant to which such PSP Project
Entity agrees to be bound as a PSP Project Entity pursuant to this Agreement (an “Accession Agreement”). If
a PSP Project Entity executes an Accession Agreement, then PSP shall have no obligations or liabilities relating to such Jointly
Owned Company,

 

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whether such
obligations and liabilities arose prior to or after the date that the Accession Agreement was executed and delivered to PEGI.

 

Article
3

Term and Renewal

 

Section 3.01.     
Term. The term of this Agreement (the “Term”) shall commence on the date first set forth above
(“Commencement Date”) and, subject to termination pursuant to Article 9, shall continue with respect
to PSP and PEGI until the expiration of the last Jointly Owned Company Service Period and, with respect to a PSP Project Entity,
shall continue until the expiration of the Jointly Owned Company Service Period for the Jointly Owned Company in which such PSP
Project Entity holds an interest. PEGI shall provide the Services to each Jointly Owned Company for the period commencing on the
closing of a transaction resulting in the acquisition or formation of a Jointly Owned Company or the closing of an acquisition
of a Project by a Jointly Owned Company and ending on the latter of (x) the twenty-fifth anniversary of such date and (y) the
twenty-fifth anniversary of the commercial operation date of the Project held by such Jointly Owned Company (an “Initial
Jointly Owned Company Service Period”); provided that in no case shall an Initial Jointly Owned Company Service
Period extend beyond the estimated useful life of the relevant Project as set forth in the applicable Financial Model.

 

Section 3.02.     
Renewal. Upon a written notice of renewal delivered by PSP or the relevant PSP Project Entity to PEGI at least twelve
(12) months prior to the scheduled expiration of any Initial Jointly Owned Company Service Period, such period shall be extended
on the same terms and conditions for a five (5) year period or such shorter period as may determined by PSP or the relevant PSP
Project Entity, subject to termination pursuant to Article 9 (the Initial Jointly Owned Company Service Period plus any
such extension being the “Jointly Owned Company Service Period”). For the avoidance of doubt, if multiple Projects
are held by a Jointly Owned Company, a separate Jointly Owned Company Service Period shall apply to each such Project.

 

Article
4

Scope of Services

 

Section 4.01.     
Services. PEGI agrees to provide the services described in Exhibit B to each PSP Project Entity with respect
to each Jointly Owned Company and, subject to Section 4.03, such other services as mutually agreed by the Parties (collectively
the “Services”), during each applicable Jointly Owned Company Service Period or for such lesser period of time
during the Term as specified in Exhibit B.

 

Section 4.02.     
Third Party Service Providers. The Parties acknowledge that, in connection with the Services, PEGI may engage certain
third party service or other providers that any Jointly Owned Company would otherwise directly engage (i) if less than $25,000
(or the equivalent thereof if such amount is not expressed in U.S. dollars) in value (and, in case of agreements to be made on
a regular and periodic basis with the same Person, $25,000 (or the equivalent thereof if such amount is not expressed in U.S.
dollars) in accumulative value of such agreements covering any 12-month period),

 

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subject to
an aggregate cap of $100,000 (or the equivalent thereof if any such amounts are not expressed in U.S. dollars) in any 12-month
period for services provided to any individual Jointly Owned Company or (ii) upon receipt of written approval from PSP or a PSP
Project Entity (which approval shall be at PSP’s or such PSP Project Entity’s sole and absolute discretion); provided
that in each of cases (i) and (ii), PEGI will enter into such agreements (collectively under this Section 4.02, the
“JV Contractor Agreements”) only as agent for and on behalf of the Jointly Owned Company, and not in PEGI’s
own capacity and without any liability on the part of PEGI, provided, that PEGI shall select such third party service or
other provider with reasonable care, and provided, further, that nothing in this Section 4.02 shall derogate
from PEGI’s liabilities and obligations pursuant to Article 8.

 

Section 4.03.     
Service Changes. Any change to the Services must be specified in a written statement of work (a “Statement
of Work”) to be mutually agreed and executed by PEGI, on the one hand, and PSP or the relevant PSP Project Entity, on
the other hand. Each Statement of Work shall reference this Agreement and shall specify (i) the change to the Services to be performed
by PEGI, and an amended Exhibit B to incorporate such change to the Services and to specify the term in which such services
are to be provided, (ii) any change in the compensation payable to PEGI and (iii) other mutually agreed upon terms.

 

Article
5

Representation and Warranties

 

Section 5.01.     
General. Each Party that is a party to this Agreement on the date hereof represents and warrants to the other Party
on the date hereof that:(a)            
it is duly formed and existing under the Laws of the jurisdiction of its formation and is duly qualified to do business
in each jurisdiction where the nature of its business or its operations requires such qualification;

 

(b)            
the execution, delivery and performance of this Agreement is within its company, corporate or partnership, as the case
may be, powers, have been duly authorized by all necessary company, corporate or partnership, as the case may be, action and does
not require any approval or consent of any Person that has not been obtained and does not contravene, conflict with or constitute
a default under any of the terms or conditions in its governing documents, any contracts to which it is a party or any Law, judgment,
injunction, decree, rule, regulation, order or the like binding upon such Party or its property;

 

(c)            
this Agreement constitutes its legally valid and binding obligation enforceable against it in accordance with its terms;
subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws effecting creditors’
rights and remedies generally and to the effect of general principles of equity (regardless of whether enforcement is considered
in a proceeding at law or in equity);

 

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(d)            
it is not bankrupt and there are no proceedings pending or being contemplated by it or, to its knowledge, threatened against
it which would result in it being or becoming bankrupt; and

 

(e)            
no legal proceeding is pending or threatened against it or, to its knowledge, any of its Affiliates that could materially
adversely affect its ability to perform its obligations under this Agreement.

 

Section 5.02.     
PEGI Representations. In addition to the representations and warranties in Section 5.01, PEGI represents
and warrants to PSP on the date hereof that PEGI:

 

(a)            
to the best of its knowledge is in compliance in all material respects with all Laws as required for its performance of
the Services under this Agreement;

 

(b)            
has adequate resources for the performance of the Services; and

 

(c)            
has experience in performing services such as the Services, is fully qualified to and holds all material licenses, permits,
registrations and authorizations required to perform the Services hereunder.

 

Article
6

Fees and Cost Reimbursement

 

Section 6.01.     
Remuneration.

 

(a)            
Fees. For each Project that is held by each Jointly Owned Company, the relevant PSP Project Entity shall pay PEGI
or its designee an annual fee (invoiced on a quarterly basis) as shown in Exhibit C (each, a “Fixed Fee”)
and escalating pursuant to the CPI Adjustment. The Fixed Fee for each Project that is held by each Jointly Owned Company will
be established at the commencement of the applicable Jointly Owned Company Service Period and shall initially equal (x) an amount
that corresponds to a 40 basis points reduction to the Project Rate of Return, multiplied by (y) the applicable PSP Project Entity’s
ownership percentage in the applicable Project, expressed in the functional currency of the applicable Project that is owned by
the applicable Jointly Owned Company. In addition to the Fixed Fee, each PSP Project Entity shall pay PEGI or its designee an
amount equal to all Reimbursable Expenses in respect of the relevant Jointly Owned Company. The Fixed Fees shall be payable quarterly
in arrears in accordance with Section 6.03 at the rate of one fourth (1/4th) of the annual amount, as applicable.
The Reimbursable Expenses shall be payable quarterly in arrears in accordance with Section 6.03.

 

(b)            
Sales Taxes. All fees paid by a PSP Project Entity to PEGI or its designee as consideration for the Services shall
be exclusive of all sales and transfer taxes, registration charges and transfer fees, and any other applicable local taxes (collectively
“Sales Taxes”). Each PSP Project Entity shall be liable for and shall direct, pursuant to a Project Distribution
Payment Direction, the relevant Jointly Owned Company to pay to

 

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PEGI
or its designee an amount equal to the Sales Taxes required to be collected by PEGI or its designee from such PSP Project Entity
in respect of the provision of the Services that are reflected in any Invoice. Any such payment made by a Jointly Owned Company
in accordance with this Section 6.01(b) shall constitute a payment by such PSP Project Entity to PEGI or its designee of the amount
of such Sales Taxes.

 

(c)            
Withholding Taxes. Any and all payments made by a PSP Project Entity to PEGI or its designee shall be made without
deduction or withholding for any taxes, except as required by applicable Law. If a PSP Project Entity is required under Law (as
determined in its good faith discretion) to withhold taxes in respect of payments made to PEGI or its designee, such PSP Project
Entity shall direct, pursuant to a Project Distribution Payment Direction, the relevant Jointly Owned Company to withhold such
taxes from any amount payable to PEGI or its designee unless an exemption from (or a reduction of) withholding tax applies under
applicable Law or any applicable tax convention, whichever is more advantageous to PEGI or its designee, and to pay such amount
to such PSP Project Entity. Any amount withheld pursuant to this Section 6.01(c) shall be remitted by such PSP Project Entity
to the relevant Governmental Authority within prescribed delays and any amount so remitted shall be deemed to have been paid to
PEGI or its designee, as the case may be. A PSP Project Entity will promptly notify PEGI of such withholding and provide any official
documentation evidencing payment of such withholding.

 

(d)            
Fixed Fee Adjustment. Each Fixed Fee shall be adjusted annually (such adjustment being the “CPI Adjustment”)
as of January 1 in each year during the applicable Jointly Owned Company Service Period, commencing on January 1 of the year following
the year in which the applicable Jointly Owned Company Service Period commences, to reflect the percentage increase or decrease
in the CPI effective as of December 31 of the immediately preceding year over the CPI effective as of December 31 of the second
immediately preceding year (the “CPI Percentage”). The CPI Adjustment will be made as soon as practicable after
January 1 in each year as the CPI effective as of December 31 of the immediately preceding year is published and the CPI Adjustment
shall be made effective retroactively to January 1 of that year. The CPI Adjustment shall be made by adding to the Fixed Fee for
the current year an amount equal to the result obtained when the CPI Percentage as of December 31 in the immediately preceding
year is multiplied by the amount of the Fixed Fee with respect to the immediately preceding year (the amount of such Fixed Fee
for the immediately preceding year to be annualized if such immediately preceding year consists of fewer than twelve (12) full
months).

 

Section 6.02.     
Reimbursable Expenses. “Reimbursable Expenses” are (i) any and all reasonable out of pocket costs
and expenses that are paid by PEGI to third parties in performing the Services and (ii) any and all costs and expenses paid by
PEGI under any JV Contractor Agreements; provided that, in each of (i) and (ii), with respect to any such costs and expenses
relating to a Jointly-Owned Company, Reimbursable Expenses shall be limited to the amount of such Reimbursable Expenses multiplied
by a fraction, the numerator of which is equal to such PSP Project Entity’s ownership interest in the relevant Project and
the denominator of which is the sum of such PSP Project Entity’s

 

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ownership
interest, PEGI’s ownership interest and the ownership interest of any third party in such Project. For the avoidance of
doubt Reimbursable Expenses shall not include any fees, costs and expenses that are incurred by a Jointly Owned Company directly,
including pursuant to any JV Contractor Agreement, any allocations of general and administrative costs, including employee compensation,
any other overhead costs and expenses or any fees, charges, costs or expenses charged to PEGI by an Affiliate of PEGI or any amounts
paid pursuant to the relevant MOMA or PAA.

 

Section 6.03.     
Payment Procedure.

 

(a)            
PEGI or its designee shall submit to the relevant PSP Project Entity (with a copy to PSP), on a quarterly basis, (i) a
detailed invoice (“Invoice”) showing the Fixed Fee and any Reimbursable Expenses, in each case earned or incurred,
as the case may be, in the just-ended quarter, in accordance with the terms hereof and (ii) in respect of each item of Reimbursable
Expenses in respect of the Jointly Owned Company in which such PSP Project Entity holds an interest, supporting documents including
a reasonably detailed summary of the service performed and evidence of payment, including copies of any underlying invoices therefor.

 

(b)            
Subject to Section 6.03(d) and Section 6.03(e), the relevant PSP Project Entity shall pay the amounts set
out in each Invoice concurrently with the making of the next following Project Distribution by the Jointly Owned Company to which
the Invoice pertains. Such payment shall be made by such PSP Project Entity delivering a payment direction (a “Project
Distribution Payment Direction”) to such Jointly Owned Company pursuant to which such PSP Project Entity directs such
Jointly Owned Company to pay a portion of such Project Distribution to PEGI in full satisfaction of the corresponding amount of
such Invoice. Any payment by a PSP Project Entity to PEGI or its designee in accordance with such payment direction shall constitute
a payment by such PSP Project Entity to PEGI or its designee.

 

(c)            
Within sixty (60) days after the receipt of an Invoice, the relevant PSP Project Entity shall notify PEGI or its designee
of any disputed amount in such Invoice that it asserts is not in compliance with the requirements of this Agreement.

 

(d)            
In the event of any dispute by a PSP Project Entity about any amount invoiced by PEGI or its designee under Section
6.03(a), and any amount so disputed which has been paid but is ultimately determined to have been not payable shall be credited
against future amounts owing to PEGI or its designee by such PSP Project Entity under this Agreement, when so determined to have
not been payable and any disputed amount which has not been paid but is ultimately determined to have been payable shall be paid
to PEGI or its designee by the relevant PSP Project Entity, when so determined to have been payable.

 

(e)            
In no event shall a PSP Project Entity be required to make a payment to PEGI or its designee pursuant to this Section 6.03
in excess of the Project Distribution triggering the applicable payment; provided that any amount payable in excess of
the applicable Project Distribution shall accrue and be payable promptly following the next

 

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Project
Distribution to such PSP Project Entity. For the avoidance of doubt, any payment by or on behalf of a PSP Project Entity shall
be applied to the oldest amount so accrued at such time.

 

Section 6.04.     
PSP Access and Audit Rights.

 

(a)            
Upon not less than three (3) Business Days’ written notice to PEGI, PEGI shall allow PSP and a PSP Project Entity
and their respective authorized representatives access (solely to the extent relevant to the terms of this Agreement) to inspect
the books and records, and, with respect to Reimbursable Expenses, Invoices, supporting documents, invoices received by PEGI from
third party service providers, proof of payment and other materials as PSP or such PSP Project Entity may require as support thereof,
maintained by PEGI in each case solely with respect to Fixed Fees and Reimbursable Expenses under this Agreement, and to allow
PSP or such PSP Project Entity to cause an audit thereof to be conducted for any period that is within the last eighteen (18)
months (at PSP’s or such PSP Project Entity’s own cost and expense unless the audit discloses material errors or omissions
in which case PEGI shall bear the cost of the audit); provided, that such books and records may only be audited a maximum of once
per calendar quarter and provided, further, that PEGI’s personnel files shall not be subject to inspection. All access
pursuant to this Section 6.04 shall be during normal business hours and shall not unreasonably interfere with the business
and affairs of the Jointly Owned Company or PEGI.

 

(b)            
If any inspection or audit referred to in Section 6.04(a) or any report delivered to PSP or a PSP Project Entity
in accordance with this Agreement discloses that any error has occurred and that, as a result thereof, any overpayment or any
underpayment of any Fixed Fees or Reimbursable Expenses has occurred, the amount thereof shall promptly be paid to the Party to
whom it is owed by the other Party; provided, that a Party shall only be liable for any amounts hereunder that relate to
errors discovered and disclosed within the authorized inspection and audit period.

 

(c)            
Notwithstanding Section 6.04(a), each of PSP and any PSP Project Entity shall be entitled to conduct an audit with
respect to any period (and not, for the avoidance of doubt, only a period that is within the last eighteen (18) months) upon the
final, non-appealable determination that PEGI or any of its Affiliates have committed actual fraud in connection with the performance
of the Services or PEGI’s obligations pursuant to this Agreement. The provisions of Section 6.04(a) and Section 6.04(b)
shall apply to any such audit that is conducted by PSP or any PSP Project Entity pursuant to this Section 6.04(c), mutatis
mutandis, without limitation to any other rights that PSP or such PSP Project Entity may have under applicable Laws.

 

Section 6.05.     
Set-Off. The PSP Project Entity to whom an amount is owed pursuant to this Agreement may exercise a right of set-off
in respect of such amount so that any amounts payable by the PSP Project Entity to PEGI shall be reduced to the extent of amounts
outstanding to the PSP Project Entity and payable by PEGI.

 

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Article
7

PEGI Property

 

Section 7.01.     
PEGI Property. As between the Parties, PEGI shall own all right, title and interest in and to any and all Intellectual
Property developed by or on behalf of PEGI or any of its Affiliates, employees, contractors, consultants or other agents in connection
with its performance of the Services (“PEGI IP”). Subject to the terms and conditions of this Agreement, PEGI
hereby grants to PSP and the PSP Project Entities, a non-exclusive, non-transferable, non-sublicensable, royalty-free license
on an “as is” warranty-free basis, in, to and under the PEGI IP, but solely to the extent necessary for the administration
of each applicable Jointly Owned Company during the applicable Jointly Owned Company Service Period; provided that following
the termination or expiration of the applicable Jointly Owned Company Service Period, PSP and the PSP Project Entities may continue
to use such PEGI IP but solely to the extent required by PSP or the PSP Project Entities for routine internal compliance, audit
or record keeping purposes, in each case related to the Services performed under this Agreement prior to the termination or expiration
of the applicable Jointly Owned Company Service Period. The PEGI IP shall be deemed to be Confidential Information of PEGI and
subject to the terms and conditions of Article 13.

 

Section 7.02.     
Further Assurances. Upon the request of PEGI, during and after the Term, PSP and the PSP Project Entities shall
take any and all actions and execute any and all documents reasonably necessary to perfect, confirm and record PEGI’s ownership
of the PEGI IP, provided that PEGI shall be solely responsible for any and all out of pocket costs and expenses of PSP and the
PSP Project Entities in connection therewith.

 

Article
8

Indemnification

 

Section 8.01.     
Indemnification by PEGI. PEGI shall defend, indemnify and hold harmless each PSP Indemnified Party from and against
any and all Claims incurred by or asserted against any PSP Indemnified Party in connection with this Agreement arising out of
or relating to (i) any violation of Law by PEGI or its Affiliates in connection with the Services or the performance of its duties
hereunder, (ii) any taxes imposed on or attributable to the income or property of PEGI; (iii) demands or liens by subcontractors
for nonpayment of amounts due as a result of furnishing work or materials to PEGI for the Services (unless such nonpayment is
due to a PSP Project Entity’s failure to make payments to PEGI as specified in this Agreement), (iv) injury to or death
of any Person, including employees of PEGI, (v) loss of or damage to property, (vi) the failure of PEGI to comply with the terms
of this Agreement, including a breach of the standard of performance set forth in Section 10.01 or (vii) actual or alleged
infringement or misappropriation by PEGI of any intellectual property of a third party in connection with PEGI’s performance
of the Services; provided, however, in each of cases (iv), (v) and (vii) only to the extent that the Claim results from
the negligent actions or negligent inactions of or breach of the terms of this Agreement by, or the actual fraud, willful misconduct,
recklessness or bad faith of, any PEGI Indemnified Party; provided, further,

 

    9

     

    

that PEGI
shall not be required to defend, indemnify or hold harmless any PSP Indemnified Party from and against, and no PSP Indemnified
Party shall be exculpated from, any Claims to the extent caused by any PSP Indemnified Party or arising from a breach of this
Agreement by a PSP Indemnified Party or the negligent actions or inactions by, or the actual fraud, willful misconduct, recklessness
or bad faith of, any PSP Indemnified Party or otherwise not attributable to any PEGI Indemnified Party.

 

Section 8.02.     
Indemnification by PSP. The PSP Project Entities (and, solely to the extent that a PSP Project Entity has not executed
an Accession Agreement in respect of a Jointly Owned Company in accordance with Section 2.03, PSP) shall severally, and
not jointly or jointly and severally, indemnify, defend and hold harmless each PEGI Indemnified Party from and against any and
all Claims incurred by or asserted against such PEGI Indemnified Party in connection with this Agreement arising out of or relating
to (i) any a violation of Law to be complied with by such PSP Project Entity hereunder, (ii) any taxes imposed on or attributable
to the income or property of such PSP Project Entity or of PSP, (iii) injury to or death of any Person, including employees of
such PSP Project Entity, (iv) loss of or damage to property or (v) the failure of such PSP Project Entity to comply with the terms
of this Agreement; provided, however, in each of cases (iii) and (iv) only to the extent that the Claim results from the
negligent actions or negligent inactions of or breach of the terms of this Agreement by, or actual fraud, willful misconduct,
recklessness or bad faith of, any PSP Indemnified Party; provided, further, however, that a PSP Project Entity shall
not be required to defend, indemnify or hold harmless any PEGI Indemnified Party from and against, and no PEGI Indemnified Party
shall be exculpated from, any Claims to the extent caused by any PEGI Indemnified Party or arising from a breach of this Agreement
by PEGI or any PEGI Indemnified Party or the negligent actions or inactions by, or the actual fraud, willful misconduct, recklessness
or bad faith of, any PEGI Indemnified Party, and provided, further, that no PSP Project Entity shall be liable for any
Claim relating to a Jointly Owned Company in which such PSP Project Entity does not hold an interest.

 

Section 8.03.     
Indemnification Procedure. When required to indemnify an Indemnified Party in accordance with this Article 8,
PEGI or the relevant PSP Project Entity, as applicable (in such capacity, the “Indemnifying Party”) shall assume
on behalf of such Indemnified Party and conduct with due diligence and in good faith the defense of any Claim against such Indemnified
Party and shall bear the expense thereof, whether or not the Indemnifying Party shall be joined therein, and the Indemnified Party
shall cooperate with the Indemnifying Party in such defense. The Indemnifying Party shall have charge and direction of the defense
and settlement of such Claim, provided, however, that without relieving the Indemnifying Party of its obligations hereunder
or impairing the Indemnifying Party’s right to control the defense or settlement thereof, the Indemnified Party shall be
consulted on the defense and settlement of such Claim and may elect to participate through separate counsel in the defense of
any such Claim, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (a) the employment
of counsel by such Indemnified Party has been authorized in writing by the Indemnifying Party, (b) the Indemnified Party shall
have reasonably concluded that there exists a material conflict of interest between the Indemnifying Party and such Indemnified
Party in the conduct of the defense of such Claim (in which case

 

    10

     

    

the Indemnifying
Party shall not have the right to control the defense or settlement of such Claim on behalf of such Indemnified Party) or (c)
the Indemnifying Party shall not have employed counsel reasonably acceptable to the Indemnified Party to assume the defense of
such Claim within a reasonable time after notice of the commencement thereof. In each of such cases set forth in the second sentence
of this paragraph, the reasonable fees and expenses of counsel shall be at the expense of the Indemnifying Party except where
the Indemnifying Party is ultimately deemed not to have been required to provide the indemnity sought by the Indemnified Party.
The Indemnifying Party shall not settle any Claim if the terms of such settlement (x) require the payment of any amount by the
Indemnified Party for which the Indemnified Party is not indemnified hereunder or (y) provide for non-monetary damages, in each
case without the written consent of the Indemnified Party, which consent shall not be unreasonably conditioned, withheld or delayed.

 

Section 8.04.     
Trustee and Agent. Each Party acknowledges that the other Party is acting as trustee and agent for the remaining
PSP Indemnified Parties or PEGI Indemnified Parties, as the case may be, on whose behalf and for whose benefit the indemnity in
Section 8.01 or Section 8.02, as the case may be, is provided and that such remaining Indemnified Parties shall
have the full right and entitlement to take the benefit of and enforce such indemnity notwithstanding that they may not individually
be Parties to this Agreement. Each Party agrees that the other Party may enforce the indemnity for and on behalf of such remaining
PSP Indemnified Parties or PEGI Indemnified Parties, as the case may be, and, in such event, the Party from whom indemnification
is sought will not in any proceeding to enforce the indemnity by or on behalf of such remaining PSP Indemnified Parties or PEGI
Indemnified Parties, as the case may be, assert any defense thereto based on the absence of authority or consideration or privity
of contract and irrevocably waives the benefit of any such defense.

 

Section 8.05.     
Survival.

 

(a)            
Notwithstanding any other provision of this Agreement, the provisions of this Article 8 are intended to and shall
survive termination of this Agreement for a period of eighteen (18) months after its expiration or termination.

 

(b)            
Any rights or obligations that have accrued prior to the termination shall survive notwithstanding the termination of this
Agreement.

 

Article
9

Termination

 

Section 9.01.     
Termination by Either Party. Either PEGI or PSP (“Terminating Party”) may terminate this Agreement
without limiting any other rights or remedies it may have):

 

(a)            
in the case of a termination by PSP, if PEGI fails to make any payment required to be made hereunder when such payment
is due and owing under this Agreement and in the case of a termination by PEGI, if a PSP Project Entity fails to make

 

    11

     

    

any
payment requirement hereunder when such payment is due and owing under this Agreement (in each case, other than, for certainty,
payments in respect of which a dispute notice has been delivered pursuant to Section 6.03(c)), and such failure shall continue
for fifteen (15) days after written notice thereof has been given to the non-paying Party; provided, however, that such
right of termination under Section 9.01(a) may not be exercised if PEGI’s or a PSP Project Entity’s failure
to make a payment required to be made hereunder arises out of or relates to the Terminating Party’s (or, in the case of
a termination by PSP, a PSP Project Entity’s) actual fraud, willful misconduct, recklessness or bad faith; or

 

(b)            
(i) in the case of a termination by PSP, if PEGI under applicable debtor relief Laws, (A) has filed against it a petition
under any bankruptcy, insolvency or similar Law of any jurisdiction which are not dismissed within sixty (60) Business Days of
the date filed, (B) proposes any dissolution, liquidation, composition, financial reorganization or recapitalization with creditors,
(C) makes an assignment for the benefit of creditors, or (D) files a voluntary petition in bankruptcy or under any insolvency
or similar Law or consents to the filing of any bankruptcy or reorganization petition against it under any similar Law, or if
receivers, trustees, custodians or similar agents are appointed or take possession with respect to any property or business of
PEGI, and (ii) in the case of a termination by PEGI, if PSP or a PSP Project Entity under applicable debtor relief Laws, (w) has
filed against it a petition under any bankruptcy, insolvency or similar Law of any jurisdiction which are not dismissed within
sixty (60) Business Days of the date filed, (x) proposes any dissolution, liquidation, composition, financial reorganization or
recapitalization with creditors, (y) makes an assignment for the benefit of creditors, or (z) files a voluntary petition in bankruptcy
or under any insolvency or similar Law or consents to the filing of any bankruptcy or reorganization petition against it under
any similar Law, or if receivers, trustees, custodians or similar agents are appointed or take possession with respect to any
property or business of PSP or such PSP Project Entity.

 

Section 9.02.     
Termination by PSP.

 

(a)            
PSP shall be entitled to terminate this Agreement by delivery of written notice of termination to PEGI (i) if PEGI fails
to comply in any material respect with any term, provision or covenant of this Agreement, other than the payment of sums to be
paid hereunder but including a breach of the standard of performance set forth in Article 10, and such failure shall continue
for thirty (30) days after written notice thereof has been given to PEGI, unless such failure cannot reasonably be cured within
said thirty (30) days and PEGI shall have commenced to cure such failure within said period and shall thereafter proceed with
reasonable diligence and good faith to cure such failure, in accordance with a schedule reasonably acceptable to PSP, (ii) in
the event of actual fraud, willful misconduct, recklessness or bad faith of PEGI or its Affiliates, in each case in connection
with this Agreement or (iii) in the event of the termination or resignation of a majority of the individuals that comprise PEGI’s
management team as of immediately prior to a Change of Control that occurs in connection with and substantially concurrently with
such Change of Control. For the purpose of this Section 9.02(a), “Change of Control” means that any person
or group of persons acting jointly or in concert acquires Control of PEGI, where “Control” means (i) holding, whether
directly or indirectly, as

 

    12

     

    

owner
or other beneficiary (other than solely as the beneficiary of an unrealized security interest) securities or ownership interests
of PEGI 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 PEGI, or (ii) the exercise of de facto control of PEGI, whether direct or indirect and whether
through the ownership of securities or ownership interests or by contract, trust or otherwise. Any amounts payable by a PSP Project
Entity hereunder through the effective date of termination shall be payable pursuant to a final Invoice to be paid in accordance
with Section 6.03.

 

(b)            
Each Jointly Owned Company Service Period for a Jointly Owned Company shall terminate automatically, as of the date that
such Jointly Owned Company permanently ceases operations (including, for the avoidance of doubt, any wind-up operations).

 

Section 9.03.     
Termination by PEGI. PEGI shall be entitled to terminate this Agreement by delivery of written notice of termination
to PSP if PSP or any PSP Project Entity fails to comply in any material respect with any term, provision or covenant of this Agreement,
other than the payment of sums to be paid hereunder, and such failure shall continue for thirty (30) days after written notice
thereof has been given to PSP and such PSP Project Entity, unless such failure cannot reasonably be cured within said thirty (30)
days and PSP or the relevant PSP Project Entity, as the case may be, shall have commenced to cure such failure within said period
and shall thereafter proceed with reasonable diligence and good faith to cure such failure in accordance with a schedule reasonably
acceptable to PEGI. In connection with a termination pursuant to this Section 9.03, any amounts payable by a PSP Project
Entity hereunder through the effective date of termination shall be payable pursuant to a final Invoice to be paid in accordance
with Section 6.03.

 

Section 9.04.     
Termination for Convenience. PEGI may terminate a Jointly Owned Company Service Period for a Jointly Owned Company
for convenience at any time upon twelve (12) months’ prior written notice to PSP. In the event of such termination, all
amounts payable hereunder by the relevant PSP Project Entity will continue to be payable pursuant to a final Invoice to be paid
in accordance with Section 6.03. Following delivery of the twelve (12) months’ written notice to PSP:

 

(i)           
PEGI shall use commercially reasonable efforts to assist PSP and the relevant PSP Project Entity in the appointment and
commencement of duties of any Person to be appointed by PSP or the relevant PSP Project Entity to provide the services (substantially
similar to Services) to PSP or the relevant PSP Project Entity with respect to the applicable Jointly Owned Company (with respect
to such Jointly Owned Company, the “Successor Service Provider”) so as not to disrupt the normal provision
of the Services to the relevant PSP Project Entity with respect to such Jointly Owned Company and shall provide the Successor
Service Provider with full access to all relevant information, data and records in PEGI’s possession relating thereto and
comply with all reasonable requests made by the Successor Service Provider in connection with preparing for taking over the provision
of such services to the relevant PSP Project Entity.

 

    13

     

    

(ii)           
PEGI, to the extent allowed by such agreements and as may be required by PSP, shall transfer to the Successor Service Provider,
as from the date of termination, its rights as PEGI under all agreements entered into by it in the performance of its obligations
under this Agreement that are specific to the provision of the Services to the relevant PSP Project Entity with respect to the
applicable Jointly Owned Company. Pending such transfer, PEGI shall hold its rights and interests thereunder for the account and
to the order of the relevant PSP Project Entity or (if so required by PSP by written notice) the Successor Service Provider, provided
that the relevant PSP Project Entity shall indemnify PEGI for all liabilities incurred by PEGI under these agreements as a result
of their continuation and performance by such PSP Project Entity or, as the case may be, the Successor Service Provider.

 

(iii)           
For a period of up to ninety (90) days following termination, but prior to the appointment of a Successor Service Provider,
PEGI shall cooperate with PSP and the relevant PSP Project Entity to arrange for its personnel, to the extent available, to continue
to provide support to the relevant PSP Project Entity in connection with the provision of the Services with respect to the applicable
Jointly Owned Company for a mutually agreed fee.

 

Section 9.05.     
Completion of Services at End of Term. Upon termination or expiration of a Jointly Owned Company Service Period,
all Services with respect to applicable Jointly Owned Company as required under this Agreement shall have been performed through
the date of termination.

 

Article
10

Standard of Performance

 

Section 10.01. 
Prudent Service Provider Standard. PEGI shall perform its duties hereunder in accordance with the Prudent Service
Provider Standard. From time to time, to the extent PEGI believes that a modification of the Services is necessary or desirable
to comply with the Prudent Service Provider Standard, PEGI shall have the right to develop and propose such modifications, which
shall be subject to the approval by PSP, in its sole and absolute discretion.

 

Article
11

Limitations of Liability

 

Section 11.01. 
Total Limitation of Liability. Each Party’s total liability under this Agreement to the PSP Indemnified Parties
or PEGI Indemnified Parties, as applicable, with respect to each Jointly Owned Company for all Claims or series of related Claims
of any kind, whether based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, for all
losses or damages arising out of, connected with, or resulting from this Agreement or from the performance or breach thereof,
or from any Services relating to such Jointly Owned Company covered by or furnished, in each case, during the eighteen (18) month
period after the date hereof or any sequential (without overlap) eighteen month period thereafter, shall in no case exceed the
aggregate Fixed

 

    14

     

    

Fees actually
payable in the applicable eighteen (18) month period in respect of such Jointly Owned Company (a “Cap”); provided
that in no event shall PEGI be required to make any payment with respect to a Jointly Owned Company in excess of the Fixed
Fees actually paid to PEGI or its designee in the applicable eighteen (18) month period in respect of such Jointly Owned Company
(a “Actual Paid Amount”); provided further that any amount in excess of the applicable Actual Paid Amount
but less than the applicable Cap that is not paid as a result of the foregoing proviso (an “Accrued Indemnity Amount”)
shall accrue and be payable at such time as an amount equal to the applicable Accrued Indemnity Amount is paid to PEGI or its
designee pursuant to Section 6.03 in respect of the applicable eighteen (18) month period. The foregoing limitation on liability
shall not apply to (a) damage to a Party arising out of the actual fraud, gross negligence, willful misconduct, recklessness
or bad faith of the other Party with respect to the subject matter of this Agreement, (b) any amounts recoverable by a Party as
an insurance payment; or (c) amounts owed by a PSP Project Entity to PEGI pursuant to Article 6 in respect of Services performed
with respect to such Jointly Owned Company, Reimbursable Expenses, or other costs and expenses expressly owing to PEGI under this
Agreement, as provided hereunder. Except as previously asserted by a Party and as provided in Section 9.04, all of the
other Party’s liability under this Agreement shall cease eighteen (18) months after expiration, or earlier termination,
of this Agreement.

 

Section 11.02. 
Waiver of Consequential Damages. In no event, whether based on contract, indemnity, warranty, tort (including negligence),
strict liability or otherwise, shall either Party be liable for special, incidental, exemplary, indirect or consequential damages
including, but not limited to, loss of profits or revenue, loss of use of the equipment or any associated equipment, cost of capital,
costs in excess of estimates, cost of purchased power, cost of substitute equipment, facilities or services, downtime costs or
Claims of customers and/or lenders of PSP or any PSP Project Entity for such damages. In no event shall PEGI be liable under this
Agreement for any loss or damage whatsoever arising from the failure to discover latent defects or defects inherent in the design
of the operating assets of the Jointly Owned Company. If PEGI furnishes PSP or a PSP Project Entity with advice or assistance
not required by this Agreement, without separate compensation therefor, PEGI shall not be subject to any liability whatsoever
resulting from such advice or assistance.

 

Section 11.03. 
General. The liability disclaimers and liability limits set forth in this Agreement shall not preclude or limit
any Party in claiming under any available insurance coverage.

 

Article
12

Notices

 

All notices
and other communications required or permitted by this Agreement or by Law to be served upon or given to a Party by any other
Party shall be in writing and deemed duly served, given and received (i) on the date of service, if served personally or sent
by facsimile transmission (with appropriate confirmation of receipt) to the Party to whom notice is to be given, or (ii) on the
fourth day after mailing, if mailed by first class

 

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registered
or certified mail, postage prepaid or (iii) on the next day if sent by a nationally recognized courier for next day service and
so addressed and if there is evidence of acceptance by receipt addressed as follows:

 

To PEGI:

 

Pattern Energy Group
Inc.

Pier 1, Bay 3

San Francisco, CA, USA, 94111

 

Attention:       General
Counsel

Facsimile:        415-362-7900

 

To PSP or
a PSP Project Entity:

 

c/o 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

 

The Parties,
by like notice in writing, may designate, from time to time, another address or office to which notices shall be given pursuant
to this Agreement.

 

Article
13

Confidentiality

 

Section 13.01. 
General Confidential Information. Each Party hereby undertakes to keep confidential, except as may be explicitly
approved in writing by the other Party, the other Party’s information including all documents and information concerning
the other Party, or the information furnished to each Party in connection with the duties contemplated by this Agreement and not
otherwise lawfully available to each receiving Party (“Confidential Information”); provided that, “Confidential
Information” shall not include: (a) public information or information in the public domain at the time of its

 

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receipt by
the other Party; (b) information which becomes public through no fault or act of the other Party or its representatives; or (c)
information received by the other Party in good faith from a third party lawfully in possession of the information and not in
breach of any confidentiality obligations. Each Party agrees to use the other Party’s Confidential Information only in connection
with its respective duties and obligations hereunder except to the extent such information can be shown by the disclosing Party
to have been previously known by it, in the public domain through no fault of the disclosing Party, or if such disclosure is required
by Law.

 

Section 13.02. 
Limited Disclosure of Confidential Information. Notwithstanding the provisions of Section 13.01, each Party
shall be entitled to the extent necessary for the performance of its duties hereunder to allow access to the Confidential Information
described in Section 13.01 exclusively to any third party as required for the performance of its duties hereunder, and
to such of its employees, contractors, consultants, financing parties, and Affiliates who need to know such Confidential Information
in order for PEGI, PSP or a PSP Project Entity, as the case may be, to carry out its duties under this Agreement, as well as each
Party’s legal and accounting advisors, provided that the Party receiving Confidential Information from the other Party shall
inform each of such Persons of the confidential nature of such information and of its obligation of confidentiality in respect
of it, and provided that such employees, contractors, consultants, financing parties, and Affiliates are subject to similar confidentiality
restrictions against disclosure and that any confidential material is returned to the disclosing party or destroyed, at the option
of the receiving Party at the termination of this Agreement, provided that the receiving Party may nevertheless maintain a single
confidential copy of the Confidential Information as a record of the material provided hereunder, and the receiving Party shall
not be deemed to have retained or failed to destroy any Confidential Information which is in electronic form if such information
is deleted from local hard drives so long as no attempt is made to recover such information from servers or back-up sources. Each
of PEGI, PSP and each PSP Project Entity acknowledges that it is aware that (a) the Confidential Information being furnished to
it may contain material, non-public information regarding PEGI and (b) the United States and Canadian securities Laws prohibit
any Persons who have material, nonpublic information concerning a company 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.
Each of PEGI, PSP and each PSP Project Entity further confirms that it has in place internal information protection mechanisms
to prevent unauthorized use of the Confidential Information. This Article 13 shall survive the termination of this Agreement
for a period of three (3) years.

 

Article
14

Dispute Resolution

 

Section 14.01. 
Procedure.

 

    17

     

    

(a)            
The Parties shall attempt, in good faith, to resolve or cure all disputes (including disputes with respect to a claimed
breach hereof) by mutual agreement in accordance with this Article 14 before initiating any legal action or attempting
to enforce any rights or remedies hereunder (including termination, except for a termination pursuant to Section 9.04),
at Law or in equity (regardless of whether this Article 14 is referenced in the provision of this Agreement which is the
basis for any such dispute). If there is a dispute as to whether a breach has occurred or if any other dispute under this Agreement
has arisen, any Party may give notice thereof to the other Parties which notice shall describe in reasonable detail the basis
and specifics of the alleged breach or dispute. Within five (5) days after delivery of such notice, the designated representatives
of all Parties shall meet to discuss and attempt to resolve or cure such dispute or claimed breach. If such representatives are
unable to resolve the dispute or claimed breach within fifteen (15) days after delivery of such notice, the matter shall be referred
to a “Senior Officer” of (i) PSP, on behalf of itself and each of the PSP Project Entities, which Senior Officer is
unaffiliated with PEGI, and (ii) PEGI, which Senior Officer is unaffiliated with PSP, for resolution or cure. If such Senior Officers
are unable to agree on an appropriate cure or resolution within ten (10) days after the matter has been referred to them, the
Parties may have recourse to mediation, arbitration or other alternative dispute resolution device of their mutual selection.
If the Parties cannot agree on an alternative dispute resolution device, each Party may pursue its legal remedies.

 

(b)            
Pending final resolution of any dispute, the Parties shall continue to fulfill their respective obligations under this
Agreement.

 

Article
15

Miscellaneous

 

Section 15.01. 
Execution. This Agreement may be executed in any number of counterparts and by the different Parties on separate
counterparts, each of which, when so executed and delivered, shall be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

Section 15.02. 
Governing Law. This Agreement, the legal relations among the Parties hereunder and the adjudication and the enforcement
thereof, shall in all respects be governed by, and interpreted and construed in accordance with, the Laws (excluding conflict
of Laws rules and principles) of the State of New York applicable to agreements made and to be performed entirely within such
State, including all matters of construction, validity and performance.

 

Each Party
irrevocably submits to the exclusive jurisdiction of the Supreme Court of the State of New York, New York County, for any proceeding
arising out of this Agreement or any transaction contemplated hereby. To the extent that service of process by mail is permitted
by Law, each Party irrevocably consents to the service of process in any proceeding in such courts by the mailing of such process
by registered or certified mail, postage prepaid, at its address for notices provided for herein. Nothing herein shall affect
the right of any Person to serve process in any other manner permitted by Law. Each of the Parties irrevocably and unconditionally
waives any objection to the laying of

 

    18

     

    

venue of
any proceeding arising out of this Agreement or the transactions contemplated hereby in the Supreme Court of the State of New
York, New York County, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such
court that any proceeding brought in any such court has been brought in an inconvenient forum. EACH PARTY HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER AGREEMENT ENTERED
INTO IN CONNECTION THEREWITH AND FOR ANY COUNTERCLAIM WITH RESPECT THERETO.

 

Section 15.03. 
Amendments, Supplements, Etc. Neither this Agreement nor any of the terms hereof may be amended, supplemented, or
modified orally, but only by an instrument in writing signed by PEGI and by PSP.

 

Section 15.04. 
Headings. The headings of the Articles and Sections of this Agreement have been inserted for convenience of reference
only and shall not modify, define or limit any of the terms or provisions hereof.

 

Section 15.05. 
Assignment. Except as set forth in this Section 15.05, no Party may assign this Agreement without the prior
written consent of the other Parties, which may be withheld in the non-assigning Party’s sole and absolute discretion. PEGI
may freely assign this Agreement to an Affiliate of PEGI, so long as such Affiliate of PEGI retains the institutional knowledge
and personnel to perform this Agreement and PEGI will not be released from its obligations under this Agreement unless the assignee
has a similar or better financial ability to perform the obligations of PEGI under this Agreement, as reasonably determined by
PSP. PSP and each PSP Project Entity may, without the consent of PEGI, pledge, collaterally assign, or encumber its rights under
this Agreement to any lender of PSP or such PSP Project Entity, as the case may be. In such event, PEGI agrees to execute a consent
to such assignment in form and substance reasonably acceptable to PSP and consistent with then-current financing practices. PEGI
also agrees that it shall, at any time and from time to time during the Term, after receipt of a written request by PSP or a PSP
Project Entity, execute and deliver to PSP, a PSP Project Entity and/or their respective lenders, such estoppel statements as
may reasonably be requested. PEGI may, without the consent of PSP or any PSP Project Entity, collaterally assign its rights to
receive and collect payments due and payable under this Agreement (but no other rights or obligations hereunder) to any lender
to PEGI or its Affiliates. If PSP or a PSP Project Entity sells, assigns, disposes of, exchanges, pledges, encumbers, hypothecates
or otherwise transfers all or part of its ownership interest in a Jointly Owned Company or any participation or interest therein,
whether directly or indirectly (including pursuant to a derivative transaction), or agrees or commits to do any of the foregoing
(a “Transfer”), it shall require, as a condition to such Transfer, that the transferee assume all of PSP’s
or such PSP Project Entity’s, as the case may be, obligations hereunder with respect to the ownership interest to be so
Transferred. Any assignment or Transfer in violation of this Section 15.05 shall be null and void.

 

    19

     

    

Section 15.06. 
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties, and their
respective successors and assigns, to the extent that assignment is permitted hereunder.

 

Section 15.07. 
Waiver. No provision of this Agreement may be waived except in writing by the waiving Party. The waiver of any breach
of any term or condition hereof shall not be deemed a waiver of any other or subsequent breach, whether of like or different nature.

 

Section 15.08. 
Severability. If any provision of this Agreement is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, that provision shall be modified so as to be enforceable and as nearly as possible reflect the original
intention of the Parties, it being agreed and understood by the Parties that (a) this Agreement and all the provisions hereof
shall be enforceable in accordance with their respective terms to the fullest extent permitted by Law, and (b) the remainder of
this Agreement shall remain in full force and effect.

 

Section 15.09. 
Construction. Every term and provision of this Agreement shall be construed simply according to its fair meaning
and not strictly for or against any Party.

 

Section 15.10. 
Entire Agreement. This Agreement constitutes the entire contract between the Parties with respect to the subject
matter hereof.

 

Section 15.11. 
No Third-Party Beneficiaries. Except as otherwise expressly set forth in this Agreement, the Parties do not intend
to, and this Agreement shall not, confer any benefit hereunder on any Person other than the Parties hereto and their permitted
assigns.

 

Section 15.12. 
Currency. Except as otherwise expressly indicated, all dollar amounts in this Agreement are expressed in U.S. dollars.

 

Section 15.13. 
Survival. The terms and conditions of this Agreement which expressly or implicitly by their nature are intended
to survive the termination or expiration of this Agreement shall survive such termination or expiration.

 

Section 15.14. 
Change in Law or Agreement. If, after the Commencement Date, there is a change in Laws, the terms of this Agreement
or any delay caused by any Person other than PEGI, which requires or makes advisable any changes in the scope or magnitude, or
increases the cost, of the Services or other responsibility of PEGI under this Agreement, then the Parties shall negotiate in
good faith and enter into a Statement of Work in connection with such change. The Statement of Work, to the extent applicable
and agreed by the Parties, may provide for an increase in the fees and expenses payable to PEGI under this Agreement.

 

[Signature
Page Follows]

 

 

 

 

    20

     

    

IN WITNESS
WHEREOF, the duly authorized representatives of the Parties have executed this Agreement on behalf of the Parties, all as of the
date first stated above.

 

 

	 	Pattern Energy Group Inc.
	 	 
	 	 
	 	By:	/s/ Esben Pedersen
	 	 	Name:Esben Pedersen
	 	 	Title: Chief Investment Officer

 

	 	PUBLIC SECTOR PENSION INVESTMENT BOARD
	 	 
	 	 
	 	By:	/s/ Guthrie Stewart
	 	 	Name:Guthrie Stewart
	 	 	Title:Senior Vice President, Global Head of Private Investments
	 	 	 
	 	By:	/s/ Patrick Samson
	 	 	Name:Patrick Samson
	 	 	Title:Managing Director, Infrastructure Investments

 

 

 

    

     

    

Exhibit
A

SCHEDULE OF DEFINITIONS

 

When used
in the Agreement (as defined below), unless otherwise defined therein, the following terms shall have the respective meanings
set forth below:

 

“Affiliate”
shall mean shall mean with respect to a Person, any company or legal Entity that (a) controls, either directly or indirectly,
such Person; or (b) is controlled, directly or indirectly by such Person; or (c) is directly or indirectly controlled by a company
or Entity which directly or indirectly controls such Person; provided that (x) no Jointly Owned Company shall be deemed
an Affiliate of either PEGI or PSP and (y) neither PEGI nor PSP shall be deemed an Affiliate of the other for any purpose hereunder.
The phrases “control” or “controlled” means the power or authority through ownership of
voting securities, by contract, or otherwise to exercise a controlling influence over the management of the Entity;

 

“Agreement”
shall have the meaning given thereto in the introductory paragraph of this agreement and shall include all exhibits and schedules
hereto and all amendments and supplements hereto made in accordance with this agreement;

 

“Business
Day” shall mean any day other than Saturday, Sunday or other day on which banks are authorized or required by Law to
remain closed in New York, NY or Montreal, Quebec and, if the relevant action is required to be taken in respect of a Jointly
Owned Company, the jurisdiction in which the applicable Jointly Owned Company operates;

 

“Claims”
shall mean claims, actions, damages, expenses (including, without limitation, legal fees and disbursements), fines, penalties,
losses and liabilities;

 

“Commencement
Date” shall have the meaning given thereto in Article 3;

 

“Confidential
Information” shall have the meaning given thereto in Section 13.01;

 

“CPI”
shall mean the Consumer Price Index, “All Urban Consumers; U.S. City Average,” as published by the Bureau of Labor
Statistics, or if such index shall cease to be published, such other index as shall be reasonably selected by PEGI and PSP;

 

“CPI
Adjustment” shall have the meaning given thereto in Section 6.01(d);

 

“CPI
Percentage” shall have the meaning given thereto in Section 6.01(d);

 

“Entity”
means any Person other than a natural Person;

 

“Financial
Model” shall, with respect to any Project or Jointly Owned Company, have the meaning set forth in the purchase and sale
agreement between, among others, the relevant PSP Project Entity, PEGI and Pattern Energy Group LP or Pattern Energy

 

    A-1

     

    

Group 2 LP,
as the case may be, for the direct or indirect acquisition of interests in such Jointly Owned Company or Project)

 

“Fixed
Fee” shall have the meaning given thereto in Section 6.01(a);

 

“Governmental
Authority” shall mean any federal, provincial, state or local government authority, agency, court or other body, officer
or public Entity, including any zoning authority, building inspector, or health or safety inspector;

 

“Indemnified
Party” shall mean a PEGI Indemnified Party or a PSP Indemnified Party;

 

“Indemnifying
Party” shall have the meaning given thereto in Section 8.03;

 

“Initial
Jointly Owned Company Service Period” shall have the meaning given thereto in Section 3.01;

 

“Invoice”
shall have the meaning given thereto in Section 6.03(a);

 

“Joint
Acquisition Framework” shall have the meaning given thereto in the recitals to this Agreement;

 

“Joint
Venture Agreement” shall have the meaning given thereto in the recitals to this Agreement;

 

“Jointly
Owned Company” shall have the meaning given thereto in the preamble to this Agreement;

 

“Jointly
Owned Company Service Period” shall have the meaning given thereto in Section 3.02;

 

“JV
Contractor Agreements” shall have the meaning given thereto in Section 4.02;

 

“Intellectual
Property” shall mean any and all intellectual property or similar proprietary rights throughout the world, including
any and all: (i) patents, patent applications, patent disclosures and all related provisionals, continuations, continuations-in-part,
divisionals, reexaminations, renewals and extensions; (ii) trademarks, service marks, logos, trade dress, corporate names
and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and copyrightable
works including all derivative works, moral rights, renewals, extensions, reversions and restorations associated therewith; (iv) rights
in computer software, data and databases, and documentation relating to any of the foregoing; (v) trade secrets, know-how,
inventions and invention disclosures (whether patentable or not) and proprietary or confidential information (including pricing
and cost information, business and marketing plans and customer and supplier lists); (vi) drawings, schematics and other
technical plans; (vii) registrations and applications for any of the foregoing; (viii) rights to sue or recover and retain damages
and costs and attorneys’ fees for the past, present or future

 

    A-2

     

    

infringement,
dilution, misappropriation or other violation of any of the foregoing; and (ix) all other intellectual property rights.

 

“Laws”
shall mean all laws, statutes, orders, decrees, injunctions, licenses, permits, approvals, agreements and regulations of any Governmental
Authority having jurisdiction over the matter in question;

 

“MOMA”
means, with respect to a Jointly Owned Company, the management, operation and maintenance agreement entered into by such Jointly
Owned Company with PEGI or its Affiliate;

 

“PAA”
means, with respect to a Jointly Owned Company, the project administration agreement entered into by such Jointly Owned Company
with PEGI or its Affiliate;

 

“Party”
or “Parties” shall have the meaning given thereto in the introductory paragraph of this Agreement;

 

“PEGI”
shall have the meaning given thereto in the introductory paragraph of the Agreement, and shall include its successors and permitted
assigns, if any, under this Agreement;

 

“PEGI
Indemnified Party” shall mean PEGI and its Affiliates, and all of their respective officers, directors, employees and
representatives. In no case shall PSP or any of its Subsidiaries, including any PSP Project Entity, be a PEGI Indemnified Party;

 

“PEGI
IP” shall have the meaning given to such term in Section 7.01.

 

“Person”
shall mean any individual, partnership, joint stock company, corporation, trust, unincorporated association or joint venture,
a government or any department or agency thereof, or any other Entity;

 

“Prime
Rate” means the prime rate as published in the Wall Street Journal;

 

“Project”
means any power generation, storage or transmission facility or project now or hereafter owned, directly or indirectly, in whole
or in part by any Jointly Owned Company.

 

“Project
Distribution” means any distribution made by a Jointly Owned Company to a PSP Project Entity other than a distribution
made on account of the tax liability of such PSP Project Entity;

 

“Project
Distribution Payment Direction” shall have the meaning given thereto in Section 6.03(b).

 

“Project
Rate of Return” means, for any Jointly Owned Company or Project held by a Jointly Owned Company, the 25 year after tax
(assuming internal use of any tax benefits and inclusion of the Fixed Fee in taxable income) rate of return of the Parties

 

    A-3

     

    

(and not,
for the avoidance of doubt, to any tax equity) that is reflected in the Financial Model for such Jointly Owned Company or Project.

 

“Prudent
Service Provider Standard” shall mean, at a particular time, those practices, standards, methods, means, techniques,
equipment and acts that would require a Person to: (a) perform its duties in good faith and as a reasonably prudent service provider
would provide similar services, (b) exercise such care, skill, integrity and diligence as a reasonably prudent business company
of established reputation engaged in similar services in the wind energy business would exercise in the conduct of its business
and for the advancement or protection of its own interests and (c) use sufficient and properly trained and skilled personnel.

 

“PSP”
shall have the meaning given thereto in the introductory paragraph of the Agreement, and shall include its successors and permitted
assigns, if any, under this Agreement;

 

“PSP
Indemnified Party” shall mean PSP and its Affiliates, including any PSP Project Entity, and all of their respective
officers, directors, employees and representatives. In no case shall PEGI or any of its Subsidiaries be a PSP Indemnified Party;

 

“PSP
Project Entity” means, with respect to a Jointly Owned Company, the Affiliate of PSP that holds an interest in such
Jointly Owned Company, and shall include its successors and permitted assigns, if any, under this Agreement;

 

“Reimbursable
Expenses” shall have the meaning given thereto in Section 6.02;

 

“Sales
Taxes” shall have the meaning given thereto in Section 6.01(b);

 

“Schedule
of Definitions” shall mean this Schedule of Definitions;

 

“Services”
shall have the meaning given thereto in Section 4.01;

 

“Statement
of Work” shall have the meaning given thereto in Section 4.03;

 

“Subsidiary”
means, with respect to any Entity, any other Entity of which such Entity (either alone or through or together with any other Subsidiary)
owns, directly or indirectly, more than 50% of the stock or other equity interests the holders of which are generally entitled
to vote for the election of the board of directors or other governing body of such legal Entity;

 

“Successor
Service Provider” shall have the meaning given thereto in Section 9.04(i);

 

“Term”
shall have the meaning given thereto in Article 3; and

 

“Terminating
Party” shall have the meaning given thereto in Section 9.01.

 

    A-4

     

    

Exhibit
B

SERVICES

 

With respect
to each Jointly Owned Company, PEGI shall provide expertise, coordination and/or assistance with the following:

 

		·	Major
                                         Project operational and contracting direction including turbine O&M service, warranty
                                         enforcement, contract amendments, and general problem-solving.

 

		·	Senior
                                         management oversight, direction, and ability to leverage relationships.

 

		·	Project
                                         financing optimization including with respect to potential refinancings, plus commercial
                                         interfacing with financing parties regarding material amendments and consents.

 

		·	Maintenance
                                         of long-term cash-flow projections and understanding of relevant capital markets, and
                                         strategic direction informed by such.

 

		·	Construction
                                         team management for ongoing repair and capex activities.

 

		·	Procurement
                                         team relationships with major equipment suppliers (e.g., turbine OEMs) and ability
                                         to leverage PEGI’s operational scale in managing spare parts and supply chains.

 

		·	Legal
                                         support from in-house transaction counsel and specialists, plus dedicated real estate
                                         legal team.

 

		·	Environmental
                                         and biologist specialists managing ongoing permit compliance and active involvement in
                                         industry-wide regulatory efforts.

 

		·	Power
                                         markets and transmission system specialists managing ongoing market participation and
                                         interconnection activities and involvement in lobbying regulators with respect to market
                                         function.

 

		·	Meteorological
                                         team of in-house scientists providing ongoing forecasting and analysis of weather patterns
                                         on both a near-term and long-term basis, to inform O&M activities and strategic direction.

 

		·	Insurance
                                         team ongoing optimization of Project policies and ability to leverage the scale of PEGI’s
                                         global insurance program.

 

		·	IT
                                         team maintenance of Project SCADA and server systems and ongoing optimization of technology,
                                         plus ability to leverage operational scale.

 

		·	Media
                                         relations, public relations, and public policy teams providing ongoing management of
                                         Project stakeholders and information flow, and strong involvement in local and national
                                         policy lobbying efforts.

 

    B-1

     

    

		·	AP
                                         and treasury teams providing payment support and cash management including ongoing cash-flow
                                         risk management and hedging.

 

		·	Accounting
                                         support from technical accounting team, consolidations team, and internal audit team,
                                         plus ability to leverage PEGI’s overall audit scale in performing efficient Project
                                         audits.

 

		·	HR
                                         support for site personnel and others providing MOMA and PAA services.

 

		·	Corporate
                                         governance of Jointly Owned Companies including preparation of board minutes and resolutions,
                                         Entity maintenance, etc.

 

		·	Tax
                                         returns for equity partners and tax filings for Jointly Owned Companies.

 

		·	Bank
                                         account management and distributions.

 

		·	Operational
                                         and financial reporting to equity partners in each Jointly Owned Company, as required
                                         per the governance documents of the relevant Jointly Owned Company and including details
                                         on Fees and Reimbursable Expenses paid or payable by the relevant PSP Project Entity
                                         during the relevant period.

 

    B-2

     

    

Exhibit
C

JOINTLY OWNED COMPANIES

 

	Project
    Name	Jointly
    Owned Company Name	Fixed
    Fee
	Meikle
    Project	Meikle
        Wind Energy Limited Partnership

         

        Meikle
        Wind Energy Corp.

         
	CAD$171,500
	Mont
    Sainte-Marguerite Project	[New
        JV MSM Holdings LP]

         

        Pattern
        MSM GP Holdings Inc.

         

        Mont
        Sainte-Marguerite Wind Farm L.P.

         

        Mont
        Sainte-Marguerite Wind Farm Inc.

         

        Pattern
        Development MSM Management ULC

         
	CAD$228,830
	Panhandle
    2 Project	[New
        Class B Member LLC]

         

        Panhandle
        Wind Holdings 2 LLC

        
	USD$122,500

 

 

 

    C-1

     

    

Exhibit
D

FORM OF ACCESSION AGREEMENT

 

		To:	Pattern
                                         Energy Group Inc. (“PEGI”), [Name of PSP Entity that is party to the SSA]
                                         (“PSP”) and each of the other parties to the Sponsor Services Agreement referred
                                         to below

 

 

 

Reference
is made to the sponsor services agreement dated June n, 2017 between PEGI, PSP and
the PSP Project Entities party thereto from time to time (the “Sponsor Services Agreement”);

 

AND
WHEREAS the undersigned (the “PSP Project Entity”) has acquired an interest in [Name of Jointly Owned Company]
(the “Jointly Owned Company”) and wishes to become a party to the Sponsor Services Agreement as a PSP Project
Entity with respect to the Jointly Owned Company;

 

NOW
THEREFORE for good and valuable consideration, the receipt and sufficiency of which are hereby irrevocably acknowledged, the undersigned,
intending to be legally bound by this Accession Agreement, covenants and agrees as follows:

 

		1.	The
                                         PSP Project Entity acknowledges and agrees, subject to the terms of the Sponsor Services
                                         Agreement, that it shall be bound by, and entitled to the benefits of, the provisions
                                         of the Sponsor Services Agreement applicable to PSP with respect to the Jointly Owned
                                         Company to the same extent as if the PSP Project Entity was an original party thereto.

 

		2.	The
                                         PSP Project Entity assumes all of the obligations and liabilities of PSP relating to
                                         the Jointly Owned Company under the Sponsor Services Agreement, including any obligations
                                         and liabilities that arose prior to the date of this Accession Agreement, and shall be
                                         entitled to all of the rights and benefits of PSP relating to the Jointly Owned Company
                                         under the Sponsor Services Agreement, including any rights and benefits that arose prior
                                         to the date of this Accession Agreement.

 

		3.	The
                                         PSP Project Entity represents and warrants to the other Parties to the Accession Agreement
                                         on the date hereof that:

 

		a.	it
                                         is duly formed and existing under the Laws of the jurisdiction of its formation and is
                                         duly qualified to do business in each jurisdiction where the nature of its business or
                                         its operations requires such qualification;

 

		b.	the
                                         execution, delivery and performance of this Accession Agreement is within its company,
                                         corporate or partnership, as the case may be, powers, have been duly authorized by all
                                         necessary company, corporate or partnership, as the case may be, action and does not
                                         require any approval or consent of any Person that has not been obtained and does not
                                         

 

    D-1

     

    

contravene,
conflict with or constitute a default under any of the terms or conditions in its governing documents, any contracts to which
it is a party or any Law, judgment, injunction, decree, rule, regulation, order or the like binding upon such Party or its property;

 

		c.	each
                                         of this Accession Agreement and the Sponsor Services Agreement constitutes its legally
                                         valid and binding obligation enforceable against it in accordance with its terms; subject
                                         to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or
                                         similar Laws effecting creditors’ rights and remedies generally and to the effect
                                         of general principles of equity (regardless of whether enforcement is considered in a
                                         proceeding at law or in equity);

 

		d.	it
                                         is not bankrupt and there are no proceedings pending or being contemplated by it or,
                                         to its knowledge, threatened against it which would result in it being or becoming bankrupt;
                                         and

 

		e.	no
                                         legal proceeding is pending or threatened against it or, to its knowledge, any of its
                                         Affiliates that could materially adversely affect its ability to perform its obligations
                                         under this Accession Agreement or the Sponsor Services Agreement.

 

		4.	Capitalized
                                         terms used but not otherwise defined in this Accession Agreement shall have the respective
                                         meanings given to them in the Sponsor Services Agreement.

 

		5.	This
                                         Accession Agreement, the legal relations among the Parties hereunder and the adjudication
                                         and the enforcement thereof, shall in all respects be governed by, and interpreted and
                                         construed in accordance with, the Laws (excluding conflict of Laws rules and principles)
                                         of the State of New York applicable to agreements made and to be performed entirely within
                                         such State, including all matters of construction, validity and performance.

 

DATED this
___ day of __________, __________.

 

	 	[NAME OF PSP PROJECT ENTITY]
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	 
	 	 	Name:
	 	 	Title:

 

 

    D-2Exhibit 10.8

 

 

 

purchase
and sale agreement 

 

 

by and among

 

Pattern
Energy Group Inc.,

 

VERTUOUS
ENERGY CANADA INC.,

each, a Purchaser

 

and

 

PATTERN ENERGY
GROUP LP,

Seller

 

 

 

Dated as
of

 

June
16, 2017

 

 

 

 

Direct or
Indirect Interests

 

in

 

Meikle
Wind Energy Limited Partnership

 

and

 

Meikle
Wind Energy Corp.

 

 

 

 

 

    

     

    

list
of APPENDICES

 

	Appendix A-1	General
    Definitions
	 	 
	Appendix
    A-2	Rules of Construction
	 	 
	Appendix
    B	Transaction Terms
    and Conditions
	 	 
	Appendix
    C	Acquired Interests;
    Ownership Structure; and Wind Project Information
	 	 
	Appendix
    D	Documents and Key
    Counterparties

 

  

list
of schedules

 

	Schedule 2.5	Seller
    Consents and Approvals
	 	 
	Schedule
    3.5	Purchaser
    Consents and Approvals
	 	 
	Schedule
    4.2(f)	Tax Allocation
	 	 
	Schedule 6.4(b)	Control of Defense
    of Third Party Claims

 

 

    

     

    

PURCHASE
and Sale AGREEMENT

 

THIS
PURCHASE and Sale AGREEMENT (this “Agreement”), dated
as of June 16, 2017, is made by and among Pattern Energy Group Inc.,
a Delaware corporation (“Pegi”), Vertuous Energy
Canada Inc., a corporation incorporated under the federal laws of Canada (“PSP,”
each of PSP and PEGI a “Purchaser,” and together, “Purchasers”), and Pattern
Energy Group LP, a Delaware limited partnership (“Seller”). Capitalized terms used in this Agreement
shall have the respective meanings specified in Appendix A-1 attached hereto.

 

RECITALS

 

WHEREAS,
Seller owns, directly or indirectly through one or more of its Affiliates (each such Affiliate, a “Seller Affiliate”),
some or all of the membership or partnership interest, shares, voting securities, or other equity interests, as applicable, in
the project company which owns the wind project (herein referred to as the “Project Company”, as described
on Part I of Appendix C attached hereto; and the “Wind Project”, as described on Part II
of Appendix C); and

 

WHEREAS,
Seller desires to sell to Purchasers, and Purchasers desire to purchase from Seller, the Acquired Interests defined and described
in Part I of Appendix C attached hereto (herein referred to as the “Acquired Interests”),
with each Purchaser severally purchasing the percentage of the Acquired Interests set forth opposite its name in Part I
of Appendix C (such Purchaser’s “Percentage Portion”).

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual terms, conditions and agreements set forth herein, and for
other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound, the parties hereby agree as follows:

 

ARTICLE
1

PURCHASE AND SALE OF THE ACQUIRED INTERESTS

 

1.1             
Agreement to Sell and Purchase. Subject to the satisfaction or waiver (by the party for whose benefit such condition
exists) of the conditions set forth in Article 5 and the other terms and conditions of this Agreement, at the Closing (a)
Seller shall sell, assign, transfer and convey (or, if applicable, cause the Subsidiary Transferors to sell, assign, transfer
and convey) the Acquired Interests to Purchasers, and (b) each Purchaser shall severally purchase its Percentage Portion of the
Acquired Interests from Seller (or, if applicable, the Subsidiary Transferors), for its pro rata portion of the Purchase
Price set forth opposite its name in Part I of Appendix B (such Purchaser’s “Separate Purchase
Price”, and collectively, the “Aggregate Purchase Price”).

 

1.2             
Signing Date Deliverables. On or prior to the date of this Agreement, Seller has delivered or is delivering to Purchasers
the Financial Model for the Project Company as of the date hereof. On the date of this Agreement each of Seller and Purchasers
shall deliver to the other party the deliverables set forth in Part II of Appendix B.

 

1.3             
Purchase Price. The purchase price payable by each Purchaser to Seller (or, if applicable, the Subsidiary Transferor)
for the Acquired Interests at Closing shall be such

 

    

     

    

Purchaser’s
Separate Purchase Price set forth in Part I of Appendix B. The Aggregate Purchase Price shall be subject to adjustment
by the Purchase Price Adjustment (if any) set forth in Part I of Appendix B. All payments of the Aggregate Purchase
Price and any Purchase Price Adjustment shall be paid by wire transfer of same day funds in the applicable Currency to the applicable
accounts set forth in Part I of Appendix B.

 

1.4            The
Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) will
take place on the date and at the location specified in Part III of Appendix B or such other time and place as
the parties hereto shall mutually agree (including Closing by facsimile or “PDF” electronic mail transmission
exchange of executed documents or signature pages followed by the exchange of originals as soon thereafter as practicable),
and will be effective as of 12:01 a.m. Eastern Time on the day the Closing occurs.

 

1.5            Conduct
of Closing.

 

(a)             At or prior to the Closing, Seller shall deliver, or cause to be delivered, to each Purchaser:

 

		(i)	the
                                         original certificates representing such Purchaser’s Percentage Portion of the Acquired
                                         Interests duly endorsed for transfer by Seller (or, if applicable, the Subsidiary Transferors)
                                         to such Purchaser or with appropriate powers with respect thereto duly endorsed by Seller
                                         (or, if applicable, such Subsidiary Transferors); provided, that if the Acquired Interests
                                         are not in certificated form, Seller shall deliver to such Purchaser a duly executed
                                         assignment agreement or other instrument conveying such Acquired Interests to such Purchaser
                                         in form and substance reasonably acceptable to such Purchaser;

 

		(ii)	any
                                         other documents and certificates contemplated by Article 4 and Article 5
                                         hereof to be delivered by or on behalf of Seller, including the certificate referred
                                         to in Section 5.2(d);

 

		(iii)	not
                                         less than ten (10) Business Days prior to its delivery of a Closing Notice, Seller shall
                                         deliver to the Purchasers (A) an updated Financial Model for the Wind Project, which
                                         shall be revised pursuant to Part I of Appendix B and which shall be used
                                         to determine the Purchase Price Adjustment; and (B) a detailed calculation of the proposed
                                         Purchase Price Adjustment. The Purchasers shall have a period of five (5) Business Days
                                         to review and confirm the updates to the Financial Model and the calculation of the Purchase
                                         Price Adjustment. If any Purchaser disapproves of such updates to the Financial Model
                                         and/or the calculation of the Purchase Price Adjustment, the parties shall have a further
                                         period of five (5) Business Days to negotiate same. In the event that the parties cannot
                                         agree on such updates to the Financial Model and/or calculation of the Purchase Price
                                         Adjustment (acting reasonably)

 

    2

     

    

following
such five (5) Business Day period, (x) the parties shall resolve any dispute in accordance with the procedures set forth in Section
7.4 (which, for the avoidance of doubt, shall not delay the Closing Date) and (y) the amount in dispute shall be retained
by the Purchaser(s) until the dispute is resolved as aforesaid. Subject to the foregoing, Seller shall deliver to Purchasers a
signed direction containing the final determination of the Separate Purchase Price (less any disputed amount) for each Purchaser
not less than five (5) Business Days prior to the Closing Date; and

 

		(iv)	any
                                         other Closing deliverables set forth in Appendix B-1.

 

(b)           At or prior to the Closing, each Purchaser shall deliver to Seller and the other Purchaser:

 

		(i)	the
                                         documents and certificates contemplated by Article 4 and Article 5 hereof
                                         to be delivered by or on behalf of such Purchaser, including the certificate referred
                                         to in Section 5.3(d); and

 

		(ii)	any
                                         other Closing deliverables set forth in Appendix B-2.

 

ARTICLE
2

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Except
as set forth in, or qualified by any matter set forth in, the Schedules attached hereto, Seller hereby represents and warrants
to Purchasers as set forth in this Article 2 as of (a) the date hereof and (b) if the Closing Date is not the date
of this Agreement, the Closing Date, in each case, unless otherwise specified in the representations and warranties below, in
which case the representation and warranty is made as of such date. Whether or not a particular Section of this Article 2
refers to a specific, numbered Schedule, such Section shall, to the extent applicable, be subject to the exceptions, qualifications,
and other matters set forth in the Schedules to the extent that the relevance of such exceptions, qualifications or other matters
is reasonably apparent on the face thereof.

 

2.1             
Organization and Status. Each of Seller and each Subsidiary Transferor (a) is duly formed, validly existing
and in good standing under the laws of the jurisdiction of its formation as set forth in the preamble to this Agreement or Part
I of Appendix C, as applicable, (b) is duly qualified, authorized to do business and in good standing in each
other jurisdiction where the character of its properties or the nature of its activities makes such qualification necessary, and
(c) has all requisite power and authority to own or hold under lease the property it purports to own or hold under lease
and to carry on its business as now being conducted. Seller has made available to Purchasers complete and correct copies of the
Organization Documents for the Project Company, the General Partner and each of their respective Subsidiaries. Part I of
Appendix C sets forth a list of each Subsidiary of the Project Company or the General Partner and for each Subsidiary:
(a) its name, (b) the number and type of its outstanding equity securities and a list of the holders thereof and (c) its jurisdiction
of organization. Each Subsidiary of the Project Company or the General Partner is a legal entity duly formed, validly existing
and in

 

    3

     

    

good
standing under the Laws of the jurisdiction of its formation and has all requisite organizational power and authority to own,
lease and operate its properties and to carry on its business as it is now being conducted, and is duly qualified, registered
or licensed to do business as a foreign entity and is in good standing in each jurisdiction in which the property owned, leased
or operated by such Person or the nature of the business conducted by such Person makes such qualification necessary, except where
the failure to be so duly qualified, registered or licensed and in good standing would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

2.2             
Power; Authority; Enforceability. Each of Seller and each Subsidiary Transferor has the legal capacity and power
to enter into, deliver and perform its obligations under this Agreement and has been duly authorized, in accordance with its Organization
Documents, to enter into, deliver and perform its obligations under this Agreement. This Agreement has been duly executed and
delivered by Seller and constitutes the legal valid and binding obligation of Seller, enforceable against it in accordance with
its terms, except as may be limited by applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting
the enforcement of creditors’ rights generally and subject to general principles of equity regardless of whether enforceability
is considered in a proceeding in equity or at law.

 

2.3             
No Violation. The execution, delivery and performance by Seller of its obligations under this Agreement, and the
performance by each Subsidiary Transferor of this Agreement, in each case including without limitation the sale of the Acquired
Interests to the Purchasers, do not, and will not, (a) violate any Governmental Rule to which Seller, any Subsidiary Transferor,
the Project Company, the General Partner or any of their respective Subsidiaries is subject or the Organization Documents of Seller,
any Subsidiary Transferor, the Project Company, the General Partner or any of their respective Subsidiaries, (b) result in
the creation or imposition of any Lien (other than a Permitted Lien) upon the Acquired Interests, the Project Company, the General
Partner or any of their respective Subsidiaries, (c) conflict with, result in a breach of, constitute a default under, result
in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel or require any notice under any
agreement, contract, lease, license, instrument or other arrangement to which Seller or any Subsidiary Transferor is a party or
by which Seller or any Subsidiary Transferor is bound, (d) other than as set forth in Schedule 2.5, conflict with,
result in a breach of, constitute a default under, result in the acceleration of, or create in any party the right to accelerate,
terminate, modify or cancel or require any Consent under any Material Contract or (e) other than as set forth in Schedule 2.5,
require any notice under any Material Contract, except in the case of this clause (e), as would not reasonably be expected to
be material in the context of the Wind Project or otherwise prevent or materially impair or materially delay the consummation
of the transactions contemplated by this Agreement.

 

2.4             
No Litigation.

 

(a)               
None of Seller, the Subsidiary Transferors or their respective Affiliates is a party to or has received written notice
of any pending or, to the Knowledge of Seller, threatened litigation, action, suit, proceeding or governmental investigation against
Seller, the Subsidiary Transferors or their respective Affiliates which would reasonably be expected to be material to the ownership
of the Acquired Interests or which seeks the issuance of an order

 

    4

     

    

restraining,
enjoining, altering or materially delaying the consummation of the transactions contemplated by this Agreement.

 

(b)              
None of the Project Company, the General Partner or any of their respective Subsidiaries is a party to or has received
written notice of any pending or, to the Knowledge of Seller, threatened litigation, action, suit, proceeding or governmental
investigation which would reasonably be expected to be material to the Project Company, the General Partner or any of their respective
Subsidiaries or the Wind Project or which seeks the issuance of an order restraining, enjoining, altering or materially delaying
the consummation of the transactions contemplated by this Agreement.

 

(c)               
There are no material disputes with any counterparty to a Material Contract, nor has the Project Company, the General Partner
or any of their respective Subsidiaries made any material warranty claim under any Material Contract.

 

2.5             
Consents and Approvals. Except as set forth in Schedule 2.5, no Consent of any Governmental Authority is
required by or with respect to Seller, the Subsidiary Transferors, the Project Company, the General Partner or any of their respective
Subsidiaries in connection with the execution and delivery of this Agreement by Seller, or the consummation by Seller or any Subsidiary
Transferor of the transaction contemplated hereby, except for any Consents which if not obtained or made prior to the Closing
would not reasonably be expected to prevent or impair or delay the consummation of the transactions contemplated by this Agreement
and which can be reasonably expected to be obtained or made in the ordinary course after the Closing.

 

2.6             
Acquired Interests. Seller owns, directly or indirectly through one or more Seller Affiliates, of record and beneficially
one hundred percent (100%) of the Acquired Interests. Part I of Appendix C sets forth the equity capitalization
of the Project Company, the General Partner and each of their respective Subsidiaries. All of the interests described in Part
I of Appendix C have been duly authorized, validly issued and are fully-paid and non-assessable and, except as set
forth on Part I of Appendix C, there are no outstanding (i) equity interests or voting securities of the Project
Company, the General Partner or any of their respective Subsidiaries, (ii) securities of the Project Company, the General Partner
or any of their respective Subsidiaries convertible into or exchangeable for any equity interests or voting securities of the
Project Company, the General Partner or any of their respective Subsidiaries or (iii) options or other rights to acquire from
the Project Company, the General Partner or any of their respective Subsidiaries, or other obligation of the Project Company or
any of its Subsidiaries to issue, any equity interests or voting securities or securities convertible into or exchangeable for
equity interests or voting securities of the Project Company, the General Partner or any of their respective Subsidiaries, or
any obligations of the Project Company, the General Partner or any of their respective Subsidiaries to repurchase, redeem or otherwise
acquire any of the foregoing. The Seller (or, if applicable, the Subsidiary Transferors) has good and valid title to, and has,
or will have, full power and authority to convey, the Acquired Interests, as of the Closing Date. The Acquired Interests have
been, or will be, validly issued, and are, or will be, fully paid and non-assessable. No Person other than Purchasers has any
written or oral agreement or option or any right or privilege, whether by law, pre-emptive or contractual, capable of becoming
an agreement or option for the purchase or acquisition from Seller or any Subsidiary Transferor of any of the Acquired Interests.
On the Closing Date, Seller (or, if applicable, the Subsidiary Transferors)

 

    5

     

    

will
convey to Purchasers good and valid title to the Acquired Interests free and clear of all Liens other than (i) any Liens granted
by the Purchasers pursuant to the Term Loan Agreement and (ii) any obligations imposed under the Organization Documents of the
Project Company, the General Partner or their respective Subsidiaries or restrictions arising under applicable securities laws.

 

2.7             
Solvency. There are no bankruptcy, reorganization or arrangement proceedings pending against, being contemplated
by or, to the Knowledge of Seller, threatened against, Seller or any Subsidiary Transferor, the Project Company, the General Partner
or any of their respective Subsidiaries. None of Seller, any Subsidiary Transferor, the Project Company, the General Partner or
any of their respective Subsidiaries (a) has had a receiver, receiver and manager, liquidator, sequestrator, trustee or other
officer with similar powers appointed over all or part of its business or its assets, and to the Knowledge of Seller, no application
therefor is pending or threatened, (b) is insolvent or presumed to be insolvent under any law or is unable to pay its debts
as and when they fall due, (c) has made a general assignment for the benefit of its creditors, or (d) has taken any
action to approve any of the foregoing.

 

2.8             
Compliance with Law.

 

(a)               
There has been no actual violation by Seller or any Subsidiary Transferor of or failure by Seller or any Subsidiary Transferor
to comply with any Governmental Rule that is applicable to it, or allegation by any Governmental Authority of such a violation,
that would reasonably be expected to prevent or materially impair or delay the consummation of the transactions contemplated by
this Agreement.

 

(b)              
To the Knowledge of Seller, there has been no actual violation by the Project Company, the General Partner or any of their
respective Subsidiaries of or failure by the Project Company, the General Partner or any of their respective Subsidiaries to comply
with any Governmental Rule that is applicable to it, or allegation by any Governmental Authority of such a violation, that would
reasonably be expected to be material and relates to the Wind Project or would otherwise reasonably be expected to prevent or
materially impair or delay the consummation of the transactions contemplated by this Agreement.

 

2.9             
Taxes.

 

(a)               
Meikle Wind Energy Corp. (the “General Partner”) and any Subsidiary Transferor is, and has been
at all times, a resident of Canada for the purposes of the Income Tax Act (Canada) (the “Canadian Tax Act”).

 

(b)              
Each of the Project Company and PRHC Holdings LP is a Canadian partnership within the meaning of the Canadian Tax Act.

 

(c)               
The Project Company is not a “SIFT Partnership” within the meaning of the Canadian Tax Act.

 

(d)              
No jurisdiction or authority in or with which the General Partner and the Project Company do not file Tax Returns has alleged
that they are required to file such Tax Returns.

 

    6

     

    

(e)               
Each of the General Partner and the Project Company has timely filed all Tax Returns that it is required to file in all
applicable jurisdictions and all such Tax Returns are accurate and complete in all material respects, has timely paid or has caused
to be timely paid all Taxes it is required to pay to the extent due (other than those Taxes that it is contesting in good faith
and by appropriate proceedings, with adequate, segregated reserves established for such Taxes) and, to the extent such Taxes are
not due, has established or caused to be established reserves that are adequate for the payment thereof as required by GAAP.

 

(f)               
Each of the General Partner and the Project Company has withheld from each payment made to any Person, including a Person
who is or is deemed to be a non-resident of Canada, all amounts required by applicable law to be withheld, and has remitted such
withheld amounts within the prescribed periods to the appropriate Governmental Authorities.

 

(g)              
Each of the General Partner and the Project Company has charged, collected and remitted on a timely basis all Taxes as
required under applicable laws on any sale, supply or delivery whatsoever, made by it.

 

(h)              
Each of the General Partner and the Project Company is registered under GST/HST Legislation and their registration numbers
are 85684 0319 and 83618 0901 respectively.

 

(i)                
Each of the General Partner and the Project Company has maintained and continues to maintain at its place of business in
Canada all material records and books of account required to be maintained under applicable Law, including laws relating to sales
and use Taxes.

 

(j)                
No reassessments of the Taxes of the General Partner or the Project Company have been issued and are outstanding. None
of the Seller, the Subsidiary Transferor, the General Partner or the Project Company has received any indication from any Governmental
Authority that an assessment or reassessment of the General Partner or the Project Company is proposed in respect of any Taxes,
regardless of its merits. Neither the General Partner nor the Project Company has executed or filed with any Governmental Authority
any agreement or waiver extending the period for assessment, reassessment or collection of any Taxes.

 

(k)              
The terms and conditions made or imposed in respect of every transaction (or series of transactions) between the General
Partner or the Project Company and any Person that is (i) a non-resident of Canada for purposes of the Canadian Tax Act, and (ii)
not dealing at arm’s length with it for purposes of the Canadian Tax Act, do not differ from those that would have been
made between persons dealing at arm’s length for purposes of the Canadian Tax Act.

 

(l)                
There are no Liens for Taxes on any of the assets of the General Partner or the Project Company other than Permitted Liens.

 

2.10         
Unregistered Securities. Assuming the accuracy of the representations made by the Purchasers in Section 3.8
and Section 3.9, (i) it is not necessary in connection with the sale of the Acquired Interests, under the circumstances
contemplated by this Agreement, to register such Acquired Interests under the Securities Act of 1933 (the “Securities
Act”) and (ii) no filings are required pursuant to the securities laws of any province or territory of Canada or
under any other applicable securities laws.

 

    7

     

    

2.11         
Broker’s Fees. None of Seller, any Subsidiary Transferor, the Project Company, the General Partner or any
of their respective Subsidiaries has any liability or obligation for any fees or commissions to any broker, finder or agent with
respect to the transactions contemplated by this Agreement.

 

2.12         
Material Contracts. Parts I, III, IV and V of Appendix D collectively set forth
a list of all Material Contracts. At or prior to the date hereof (or, in the case of Material Contracts included in any Updated
Disclosure Schedules, at or prior to the date such Updated Disclosure Schedules are delivered) Seller has provided Purchasers
with, or access to, copies of all Material Contracts. Each Material Contract is in full force and effect and constitutes the legal,
valid, binding and enforceable obligation of the Project Company, the General Partner or the Subsidiary that is a party thereto,
as applicable, and, to the Knowledge of Seller, each other party thereto, in accordance with its terms, except as such terms may
be limited by (i) applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors’
rights generally and (ii) general principles of equity, whether considered in a proceeding in equity or at law. None of the Project
Company, the General Partner or any of their respective Subsidiaries, or to the Knowledge of Seller, any other party thereto (i)
is in breach of or default in any material respect under a Material Contract and, to the Knowledge of Seller, no event has occurred
and continuing which, with notice or the lapse of time or both, would constitute a material breach of or default under a Material
Contract or would give rise to any right of termination, cancellation, acceleration, amendment, suspension or revocation of a
Material Contract, or (ii) has received any written notice of termination or suspension of any Material Contract, and to the Knowledge
of Seller, no action is being taken by any Person to terminate or suspend any Material Contract.

 

2.13         
Real Property.

 

(a)               
Except as set forth in Part II of Appendix C, none of the Project Company, the General Partner or any of
their respective Subsidiaries owns any real property. To the Knowledge of Seller, no Governmental Authority has commenced the
exercise of any eminent domain or similar power with respect to any Project Company Real Property owned by the Project Company
or any of its Subsidiaries, and there are no pending or, to the Knowledge of Seller, threatened condemnation or eminent domain
proceedings that affect any such Project Company Real Property.

 

(b)              
The Project Company, the General Partner and their respective Subsidiaries have good and marketable title to or, subject
to the terms and conditions of the Material Leases, the right to use all Project Company Real Property, free and clear of all
Liens other than Permitted Liens. With respect to the Project Company Real Property it leases or on which it was granted servitudes
or superficies pursuant to the Material Leases, the Project Company, the General Partner or their respective Subsidiaries, as
applicable, have peaceful and undisturbed nonexclusive possession under all Material Leases, servitudes or superficies under which
they are leasing or occupying property in accordance with the terms and conditions of the relevant Material Leases, servitude
or superficies and subject to the Permitted Liens. All rents and other payments under the Material Leases have been paid in full
to the extent due.

 

    8

     

    

(c)               
The Project Company Real Property is sufficient to provide the Project Company, the General Partner and their respective
Subsidiaries with continuous, uninterrupted and, together with public roads, contiguous access to the Wind Project sufficient
for the operation and maintenance of the Wind Project as currently conducted. All utility services necessary for the construction
and operation of the Wind Project for its intended purposes are available or are reasonably expected to be so available as and
when required upon commercially reasonable terms.

 

2.14         
Permits. Part II of Appendix C sets forth a list of all material Permits acquired or held by the Project
Company, the General Partner or their respective Subsidiaries in connection with the operation of the Wind Project. The Project
Company, the General Partner or their respective Subsidiaries hold in full force and effect all Permits required for the operation
of the Wind Project as presently conducted, other than those Permits required in connection with certain construction and maintenance
activities which are ministerial in nature and can reasonably be expected to be obtained in due course on commercially reasonable
terms and conditions as and when needed. None of the Project Company, the General Partner nor any of their respective Subsidiaries
is in material default or material violation, and, to the Knowledge of Seller, no event has occurred and continuing which, with
notice or the lapse of time or both, would constitute a material default or material violation of, or would give rise to any right
of termination, cancellation, acceleration, amendment, suspension or revocation under, any of the terms, conditions or provisions
of any Permits held by the Project Company, the General Partner or their respective Subsidiaries. There are no legal proceedings
pending or, to the Knowledge of Seller, threatened in writing, relating to the suspension, revocation or modification of any Permits
held by the Project Company, the General Partner or any of their respective Subsidiaries.

 

2.15         
Environmental Matters. Except as set forth in Part II of Appendix D, (i) the Project Company, the
General Partner and their respective Subsidiaries, the Project Company Real Property and the Wind Project are in material compliance
with all Environmental Laws, (ii) none of the Project Company, the General Partner or any of their respective Subsidiaries
has caused or contributed to the release of any Hazardous Substances in any material respect, and (iii) none of the Seller, the
Project Company, the General Partner or any of their respective Subsidiaries has received written notice from any Governmental
Authority of any material Environmental Claim, or any written notice of any investigation, or any written request for information,
in each case, under any Environmental Law. None of Seller, the Project Company, the General Partner or any of their respective
Subsidiaries has given any release or waiver of liability that would waive or impair any material claim based on the presence
of Hazardous Substances in, on or under any real property, against a previous owner of any real property or against any Person
who may be potentially responsible for the presence of Hazardous Substances in, on or under any such real property.

 

2.16         
Insurance. Part II of Appendix D sets forth a list of all material insurance maintained by or on behalf
of the Project Company, the General Partner or any of their respective Subsidiaries (the “Insurance Policies”).
All Insurance Policies are now in full force and effect. All premiums with respect to the Insurance Policies covering all periods
to and including the date hereof have been paid and, with respect to premiums due and payable prior to Closing, will be so paid.
None of these Insurance Policies have lapsed and, to the Knowledge of Seller, there are no circumstances that have rendered such
insurance unenforceable, void or

 

    9

     

    

voidable.
None of Seller, any Subsidiary Transferor, the Project Company, the General Partner or any of their respective Subsidiaries has
received any written notice in the past 12 months from the insurer under any Insurance Policies disclaiming coverage, reserving
rights with respect to a particular claim or such Insurance Policy in general or canceling or materially amending any such Insurance
Policy. Each of the Project Company, the General Partner and any of their respective Subsidiaries’ assets and properties
are insured in amounts no less than as required by applicable Law, applicable Permits or any Material Contract to which such Project
Company, the General Partner or any of their respective Subsidiaries is a party or by which its assets or properties are bound.

 

2.17         
Financial Model. The Financial Model has been prepared in good faith based on reasonable assumptions as to the estimates
set forth therein and is consistent in all material respects with the provisions of the Material Contracts.

 

2.18         
Financial Statements; No Undisclosed Liabilities; No Material Adverse Effect. The Financial Statements have been
prepared in accordance with GAAP applied on a consistent basis with prior periods, are correct and complete in all material respects
and present fairly in accordance with GAAP the assets, liabilities, financial condition and results of operations of the Project
Company as at their respective dates for the periods covered by the respective Financial Statements. None of the Project Company,
the General Partner or any of their respective Subsidiaries has any Indebtedness other than (i) as disclosed in the Financial
Statements or pursuant to the Material Contracts, (ii) incurred since the date of the Financial Statements and disclosed on Appendix
D, (iii) incurred after the date hereof in accordance with this Agreement, including Section 4.1(a), and (iv) interest
and fees accrued on any Indebtedness referred to in clause (i) after the date of the Financial Statements. Except as set forth
in the Financial Statements, none of the Project Company, the General Partner nor any of their respective Subsidiaries has any
liabilities that would be required to be disclosed on a balance sheet prepared in accordance with GAAP, other than any liabilities
incurred in the ordinary course of business since the date of the most recent balance sheet included in the Financial Statements
and any liabilities contained in the Material Contracts, other than liabilities thereunder arising from contractual breach. Since
the date of the most recent balance sheet included in the Financial Statements, no Material Adverse Effect has occurred.

 

2.19         
Personal Property. The Project Company, the General Partner or a Subsidiary of the Project Company or the General
Partner has good and valid title to (or a valid leasehold interest in) the Personal Property currently owned or used by the Project
Company, the General Partner and their respective Subsidiaries in the operation of the Wind Project (other than Personal Property
that individually and in the aggregate are immaterial to such operations), and such title or leasehold interests are free and
clear of Liens other than Permitted Liens. All Personal Property that is material to the operation of the Wind Project is in good
operating condition and repair, subject to normal wear and maintenance, and is usable in the ordinary course of business.

 

2.20         
Employees. None of the Project Company, the General Partner or any of their respective Subsidiaries has, or has
ever had, any employees.

 

    10

     

    

2.21         
Employee Benefits. No employee benefit plan is maintained, established or sponsored by the Project Company, the
General Partner or any of their respective Subsidiaries, nor does the Project Company, the General Partner or any of their respective
Subsidiaries participate in or contribute to any such plan.

 

2.22         
Labor Matters. None of the Project Company, the General Partner or any of their respective Subsidiaries is a party
to any collective bargaining agreement with a labor union or organization or any other Contract with any labor union or other
employee representative of a group of employees.

 

2.23         
Intellectual Property. The Project Company, the General Partner or their respective Subsidiaries own, license or
can acquire on reasonable terms the Intellectual Property necessary to operate the Wind Project. To the Knowledge of Seller, no
Intellectual Property required to operate the Wind Project infringes upon or otherwise violates any intellectual property rights
of any third party. There are no unresolved pending or, to the Knowledge of Seller, threatened actions or claims that allege that
the Project Company, the General Partner or any of their respective Subsidiaries has infringed or otherwise violated any material
intellectual property rights of any third party. To the Knowledge of Seller, no third party is infringing, misappropriating or
otherwise violating rights in any material respect any Intellectual Property of the Project Company, the General Partner or any
of their respective Subsidiaries.

 

2.24         
Affiliate Transactions. Except as disclosed on Appendix E, there are no transactions, contracts or liabilities
between or among (a) the Project Company, the General Partner or their respective Subsidiaries on the one hand, and (b) Seller,
any of its Affiliates or, to the Knowledge of Seller, any current representative of the Project Company, the General Partner or
their respective Subsidiaries, Seller or its Affiliates, or any member of the immediate family of any such representative, on
the other hand.

 

2.25         
First Nations Matters. There is no pending dispute with, or to the Knowledge of Seller threatened by, any First
Nation in respect of aboriginal rights, aboriginal title, treaty rights or any other aboriginal interest of such First Nation
in or to all or any portion of the Project Company Real Property or the Wind Project. Other than as disclosed in Part V
of Appendix D, none of the Project Company, the General Partner or any of their respective Subsidiaries is a party to any
agreement with a First Nations to provide benefits, pecuniary or otherwise, with respect to the Wind Project at any stage of development.
Part V of Appendix D lists all First Nations with which the Project Company, the General Partner or their respective
Subsidiaries has had active consultation in developing the Wind Project.

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES OF PurchaserS

 

Except
as set forth in, or qualified by any matter set forth in, the Schedules attached hereto, each Purchaser hereby severally represents
and warrants to Seller as set forth in this Article 3 as of (A) the date hereof and (B) if the Closing Date is not
the date of this Agreement, the Closing Date, in each case, unless otherwise specified in the representations and warranties below,
in which case the representation and warranty is made as of such date. Whether or not a particular Section of this Article
3 refers to a specific, numbered Schedule, such Section shall, to

 

    11

     

    

the
extent applicable, be subject to the exceptions, qualifications, and other matters set forth in the Schedules to the extent that
the relevance of such exceptions, qualifications or other matters is reasonably apparent on the face thereof.

 

3.1             
Organization and Status. Such Purchaser (a) is duly formed, validly existing and in good standing under the
laws of the jurisdiction of its formation as set forth in the preamble to this Agreement, (b) is duly qualified, authorized
to do business and in good standing in each other jurisdiction where the character of its properties or the nature of its activities
makes such qualification necessary, and (c) has all requisite power and authority to own or hold under lease the property
it purports to own or hold under lease and to carry on its business as now being conducted. Such Purchaser has made available
to Seller complete and correct copies of the Organization Documents for such Purchaser.

 

3.2             
Power; Authority; Enforceability. Such Purchaser has the legal capacity and power to enter into and perform its
obligations under this Agreement and has been duly authorized, in accordance with its Organization Documents, to enter into and
perform its obligations under this Agreement. This Agreement has been duly executed and delivered by such Purchaser and constitutes
the legal valid and binding obligation of such Purchaser, severally enforceable against such Purchaser in accordance with its
terms, except as may be limited by applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting the
enforcement of creditors’ rights generally and subject to general principles of equity regardless of whether enforceability
is considered in a proceeding in equity or at law.

 

3.3             
No Violation. The execution, delivery and performance by such Purchaser of its obligations under this Agreement,
including without limitation the purchase of the Acquired Interests from Seller or the Subsidiary Transferors, do not, and will
not, (a) violate any Governmental Rule to which such Purchaser is subject or the Organization Documents of such Purchaser,
or (b) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify or cancel or require any notice under any agreement, contract, lease, license, instrument
or other arrangement to which such Purchaser is a party or by which such Purchaser is bound.

 

3.4             
No Litigation. Such Purchaser is not a party to and has not received written notice of any pending or, to the Knowledge
of such Purchaser, threatened litigation, action, suit, proceeding or governmental investigation against such Purchaser, which,
in either case, would reasonably be expected to materially impair or delay the ability of such Purchaser to perform its obligations
under this Agreement or which seeks the issuance of an order restraining, enjoining, altering or materially delaying the consummation
of the transactions contemplated by this Agreement.

 

3.5             
Consents and Approvals. Except as set forth in Schedule 3.5, no Consent of any Governmental Authority or
any other Person, is required by or with respect to such Purchaser in connection with the execution and delivery of this Agreement
by such Purchaser, or the consummation by such Purchaser of the transaction contemplated hereby, except for any consents which
if not obtained would not reasonably be expected to materially impair or delay the ability of such Purchaser to perform its obligations
under this Agreement.

 

    12

     

    

3.6           Solvency. There are no bankruptcy, reorganization or arrangement proceedings pending against, being contemplated
by or, to the Knowledge of such Purchaser, threatened against such Purchaser. Such Purchaser (a) has not had a receiver,
receiver and manager, liquidator, sequestrator, trustee or other officer with similar powers appointed over all or part of its
business or assets, and to the Knowledge of such Purchaser, no application therefor is pending or threatened, (b) is not
insolvent or presumed to be insolvent under any Law and is able to pay its debts as and when they fall due, (c) has not made
a general assignment for the benefit of its creditors, and (d) has not taken any action to approve any of the foregoing.

 

3.7           Compliance with Law. To the Knowledge of such Purchaser, there has been no actual violation by such Purchaser of
or failure of such Purchaser to comply with any Governmental Rule that is applicable to it, or allegation by any Governmental
Authority of such a violation, that would reasonably be expected to prevent or materially impair or delay the consummation of
the transactions contemplated by this Agreement.

 

3.8           Accredited Investor. Such Purchaser is an “accredited investor” within the meaning of Section 73.3(1)
of the Securities Act (Ontario) if such Purchaser is resident in the Province of Ontario or within the meaning of National
Instrument 45-106 – Prospectus Exemptions if the Purchaser is resident elsewhere in Canada, and, if the Purchaser
is a U.S. Person, the Purchaser is an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3), (7) or
(8) of Regulation D, promulgated by the Securities and Exchange Commission under the Securities Act (provided that, in each case,
upon reasonable request of the Seller at any time, such Purchaser shall provide a written certificate to such effect to the Seller).

 

3.9           Purchase Entirely for Own Account. The Acquired Interests to be acquired by such Purchaser will be acquired for
investment for such Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution
of any part thereof, and such Purchaser has no present intention of selling, granting any participation in or otherwise distributing
the same. By executing this Agreement, such Purchaser further represents that such Purchaser does not presently have any contract,
undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third
Person, with respect to any of the Acquired Interests.

 

3.10           Broker’s Fee. Such Purchaser has no liability or obligation for any fees or commissions payable to any broker,
finder or agent with respect to the transactions contemplated by this Agreement.

 

ARTICLE
4

COVENANTS; OTHER OBLIGATIONS

 

4.1           Covenants
Between Signing and Closing. If the Closing Date is not the date of this Agreement, the provisions of this Section 4.1
shall apply during the period from the date hereof to the earlier of the Closing Date and the termination of this Agreement
pursuant to Section 5.4:

 

(a)               
Project Specific Pre-Closing Covenants of Seller. Seller shall use commercially reasonable efforts to conduct the
business, operations and affairs of the Project

 

    13

     

    

Company
only in the ordinary and normal course of business, subject to the following provisions with respect to any proposed entry into
any Material Contract or any proposed amendment, termination or waiver (in whole or in part) of any Material Contract (each such
proposal, a “Material Contract Change”):

 

		(i)	Seller
                                         shall give prior written notice to Purchasers of, and shall to the extent practicable
                                         consult in good faith with Purchasers regarding, any Material Contract Change that would
                                         reasonably be expected to materially and adversely affect the Operating Period; and

 

		(ii)	Seller
                                         may, but shall not be obligated to, seek by written notice the approval of each Purchaser
                                         to any Material Contract Change. During the twenty calendar-day period following delivery
                                         of any such notice, Seller shall provide to each Purchaser promptly any information within
                                         Seller’s possession regarding such Material Contract Change as such Purchaser reasonably
                                         requests. Each Purchaser shall, by the end of such twenty calendar-day period, notify
                                         Seller whether it approves (acting reasonably) such Material Contract Change. If neither
                                         Purchaser approves such Material Contract Change, Seller may (A) abstain from proceeding
                                         with such Material Contract Change, (B) proceed with such Material Contract Change (in
                                         which case each Purchaser retains its right to assert a failure of a condition precedent
                                         to Closing, if applicable), or (C) terminate this Agreement. If either Purchaser approves
                                         such Material Contract Change while the other Purchaser does not, Seller may nonetheless
                                         proceed with such Material Contract Change. In such event, the non-approving Purchaser
                                         shall be deemed to have refused to waive a condition precedent to Closing under Section
                                         5.2, and Section 5.5(b)(ii) or (c)(ii) shall apply at any time thereafter.
                                         If either Purchaser fails to complete the Closing as a result of a proposed Material
                                         Contract Change, then the Seller must proceed with such Material Contract Change, or
                                         notify the non-approving Purchaser and provide such non-approving Purchaser with the
                                         opportunity to complete the Closing.

 

(b)              
Access, Information and Documents. Subject to the next sentence, Seller will give to each Purchaser and to such
Purchaser’s counsel, accountants and other representatives reasonable access during normal business hours to all material
Books and Records and the Wind Project (subject to all applicable safety and insurance requirements and any limitations on Seller’s
rights to, or right to provide others with, access) and will furnish to such Purchaser all such documents and copies of documents
and all information, including operational reports, with respect to the affairs of the Project Company, the General Partner, the
Seller Affiliates, and the Wind Project as such Purchaser may reasonably request. If, by reason of any confidentiality obligations
imposed on Seller by any counterparty to a Contract who deals at arm’s length with Seller, Seller is unable to comply with
the foregoing covenant, Seller and such Purchaser shall use commercially reasonable efforts to obtain all necessary consents or

 

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waivers
required to make the disclosure (which, in the case of such Purchaser, may include the requirement to enter into a reasonable
confidentiality or non-disclosure agreement). Each Purchaser agrees to comply with any confidentiality obligations which would
be applicable to it under any such Contracts received from Seller hereunder.

 

(c)               
Updating of Disclosure Schedules. Seller shall notify Purchasers in writing of any material changes, additions,
or events occurring after the date of this Agreement which require a representation and warranty of Seller (other than any representations
or warranties in Sections 2.6, 2.7 and 2.11, which, for clarity, may not be updated by Seller) to be
supplemented with a new Schedule or cause any material change in or addition to a Schedule promptly after Seller becomes aware
of the same by delivery of such new Schedule or appropriate updates to any such Schedule (each, an “Updated Disclosure
Schedule”) to Purchaser. Each Updated Disclosure Schedule shall (i) expressly state that it is being made pursuant
to this Section 4.1(c), (ii) specify the representations and warranties to which it applies and (iii) describe in reasonable
detail the changes, additions or events to which it relates. No Updated Disclosure Schedule delivered pursuant to this Section
4.1(c) shall be deemed to cure any breach of any representation or warranty made to any Purchaser unless such Purchaser specifically
agrees thereto in writing or, as provided in and subject to Article 5, consummates the Closing under this Agreement after
receipt of such written notification, nor shall any such Updated Disclosure Schedule be considered to constitute or give rise
to a waiver by either of the Purchasers of any condition set forth in this Agreement, unless such Purchaser specifically agrees
thereto in writing or consummates the Closing under this Agreement after receipt of such written notification.

 

(d)              
Further Assurances. Each of the parties hereto shall use commercially reasonable efforts to take, or cause to be
taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate the transactions contemplated
hereby as soon as practicable.

 

4.2           Other
Covenants

 

(a)               
Costs, Expenses. Except as may be specified elsewhere in this Agreement, such Purchaser shall pay all costs and
expenses, including legal fees and the fees of any broker, environmental consultant, insurance consultant, independent engineer,
and title company retained by such Purchaser for its due diligence and its negotiation, performance of and compliance with this
Agreement. Seller shall pay all costs and expenses (including in connection with any reports, studies or other documents listed
in Part II of Appendix D, unless specifically noted in Part II of Appendix D), including legal fees
and the fees of any broker of Seller or its Affiliates, relating to or resulting from the negotiation, performance of and compliance
with this Agreement by Seller.

 

(b)              
Public Announcement; Confidentiality. No party hereto shall make or issue, or cause to be made or issued, any public
announcement or written statement concerning this Agreement or the transactions contemplated hereby without the prior written
consent of the other parties, except to the extent required by law (including any disclosure which, in the reasonable judgment
of the disclosing party, is necessary or appropriate to comply with Governmental Rules and standards governing disclosures to
investors) or in accordance with the

 

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rules,
regulations and orders of any stock exchange. Seller shall not, and shall cause its Affiliates and directors, officers, employees,
agents, consultants advisors and partners not to, disclose any confidential information in or relating to this Agreement other
than (i) to its Affiliates and its and their directors, officers, employees, agents, consultants, advisors and partners,
provided in each case that such recipient is bound by reasonable confidentiality obligations, (ii) as required by
applicable law or regulation or (iii) with the prior consent of Purchasers. Seller shall not use, and shall not enable any
third party to use, any confidential information in or relating to this Agreement that constitutes material non-public information
regarding Purchasers in a manner that is prohibited by the U.S. securities laws.

 

(c)             Regulatory Approvals. Each party shall use its commercially reasonable efforts to obtain all required regulatory
approvals (including the required Governmental Approvals set forth in Part VII of Appendix B) as promptly as possible
and, in any event, prior to the Closing Date. To that end, each of the parties shall make, or cause to be made, all other filings
and submissions, and submit all other documentation and information that in the reasonable opinion of any Purchaser is required
or advisable, to obtain the regulatory approvals, and will use its commercially reasonable efforts to satisfy all requests for
additional information and documentation received under or pursuant to those filings, submissions and the applicable legislation
and any orders or requests made by any Governmental Authority. Notwithstanding any other provision of this Agreement, no Purchaser
will be required to (i) propose or agree to accept any undertaking or condition, enter into any consent agreement, make any divestiture
or accept any operational restriction or other behavioral remedy, (ii) take any action that, in the reasonable judgment of such
Purchaser, could be expected to limit the right of such Purchaser to own or operate all or any portion of the business or assets
of the Project Company, the General Partner or any of their respective Subsidiaries, or of such Purchaser or any of its Affiliates,
or to conduct their respective affairs in a manner consistent with how they each conduct their affairs as of the date of this
Agreement, or (iii) contest or defend any judicial or administrative proceeding brought by any Governmental Authority seeking
to prohibit, prevent, restrict or unwind the consummation of all or a part of the transaction contemplated herein.

 

(d)             Consents. Except in respect of regulatory approvals, which shall be governed by Section 4.2(c), as promptly
as possible and, in any event, prior to the Closing Date, Seller shall use commercially reasonable efforts to (i) make or cause
to be made all filings required by Law to be made by it in order to consummate the transaction contemplated hereby; and (ii) seek
and obtain all Consents required pursuant to Section 2.5.

 

(e)             Other
Obligations of Seller and Purchasers. The parties mutually covenant as follows:

 

		(i)	to
                                         use all reasonable efforts in good faith to obtain promptly the satisfaction of the conditions
                                         to Closing of the transactions contemplated herein;

 

		(ii)	to
                                         furnish to the other parties and to the other parties’ counsel all such information
                                         as may be reasonably required in order to effectuate the foregoing actions, including
                                         draft regulatory filings and submissions, provided that such information may be
                                         redacted

 

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to
render illegible any commercially sensitive portions thereof, and in such event the parties will meet in good faith to agree on
protective measures to allow disclosure of such redacted information to counsel in a manner that affords the maximum protection
to such commercially sensitive information as is reasonable in the circumstances; and

 

		(iii)	to
                                         advise the other parties promptly if any party determines that any condition precedent
                                         to its obligations hereunder will not be satisfied in a timely manner.

 

(f)               
Allocation of Aggregate Purchase Price. The Aggregate Purchase Price shall be allocated between the Acquired Interests
based on the percentages set forth on Schedule 4.2(f) and the parties agree to report the transactions contemplated
in this Agreement in a manner consistent with such allocation in the preparation, filing and audit of any Tax Return.

 

(g)              
Allocation of Partnership Income and Loss. With respect to the income or loss of the Project Company for the fiscal
year in which the Closing occurs, the Purchasers shall cause the General Partner to allocate income or loss of the Project Company
for the period up to and including the date of Closing to the Seller, and to allocate income or loss of the Project Company for
the period after the date of Closing to the Purchasers on a pro rata basis based on their respective interests in the Project
Company at the end of the fiscal year.

 

ARTICLE
5

CONDITIONS TO CLOSING; TERMINATION

 

5.1           Conditions
Precedent to Each Party’s Obligations to Close. The obligations of the parties to proceed with the Closing under this
Agreement are subject to the fulfillment prior to or at Closing of the following conditions (any one or more of which may be waived
in whole or in part by all parties in their sole discretion):

 

(a)               
No Violations. The consummation of the transactions contemplated hereby shall not violate any applicable Governmental
Rule.

 

(b)              
No Adverse Proceeding. No order of any court or administrative agency shall be in effect which restrains or prohibits
the transactions contemplated hereby, and there shall not have been threatened, nor shall there be pending, any action or proceeding
by or before any court or Governmental Authority challenging any of the transactions contemplated by this Agreement or seeking
monetary relief by reason of the consummation of such transactions.

 

(c)               
No Termination. This Agreement shall not have been terminated pursuant to Section 5.4.

 

(d)              
Other Conditions Precedent to Closing to Each Party’s Obligations. The conditions precedent, if any, set forth
on Appendix B-3 shall have been satisfied (any one or more of which may be waived in whole or in part by all parties in
their sole discretion).

 

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5.2           Conditions
Precedent to Obligations of Purchasers to Close. The obligations of each Purchaser to proceed with the Closing under this
Agreement with respect to the purchase of the Acquired Interests are subject to the fulfillment prior to or at Closing of the
following conditions (any one or more of which may be waived in whole or in part by such Purchaser in its sole discretion):

 

(a)               
Representations and Warranties. The representations and warranties of Seller set forth in Sections 2.1 to
2.7 (inclusive) and 2.11 shall be true and correct as of the Closing Date as if made at and as of such date. All
other representations and warranties of Seller set forth in Article 2 shall be true and correct at and as of the Closing
Date as if made at and as of such date (other than any representations or warranties that are qualified by materiality, including
by reference to Material Adverse Effect, which shall be true in all respects) as though such representations and warranties were
made on and as of the Closing Date, except to the extent that (i) such representations and warranties expressly relate to
an earlier date, in which case as of such earlier date and (ii) the failure of such representations and warranties to be
true and correct, taken in the aggregate, would not have a Material Adverse Effect.

 

(b)              
Performance and Compliance. Seller shall have performed, in all material respects, all of the covenants and complied
with all of the provisions required by this Agreement to be performed or complied with by it on or before the Closing.

 

(c)               
Consents. All necessary Consents shall have been obtained, including those set forth in Schedules 2.5 and
3.5.

 

(d)              
Certificate of Seller. Such Purchaser shall have received a certificate of Seller dated the date of the Closing
confirming the matters set forth in Sections 5.2(a) and (b) in a form reasonably acceptable to such Purchaser.

 

(e)               
Good Standing Certificate. Such Purchaser shall have received a good standing certificate of Seller, each Subsidiary
Transferor, the Project Company, the General Partner and each of their respective Subsidiaries, in each case issued by the secretary
of state of the state or provincial authority of the province (as applicable) of its formation.

 

(f)               
Satisfactory Instruments. All instruments and documents reasonably required on the part of Seller to effectuate
and consummate the transactions contemplated hereby shall be delivered to such Purchaser and shall be in form and substance reasonably
satisfactory to such Purchaser.

 

(g)              
Loan Documents. Absence of any material amendment to, or any default under, any Loan Document (as defined in the
Term Loan Agreement).

 

(h)              
Term Conversion. Term Conversion shall have occurred.

 

(i)                
Material Contracts. Absence of any amendment to, entry into, termination or waiver (in whole or in part) of any
Material Contract, except any such amendment, termination or waiver that has been approved by each Purchaser, that would reasonably
be expected to materially and adversely affect the Operating Period.

 

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5.3           Conditions
Precedent to the Obligations of Seller to Close. Subject to Section 5.5, the obligations of Seller to proceed with
the Closing hereunder with respect to Seller’s sale of the Acquired Interests are subject to the fulfillment prior to or
at Closing of the following conditions (any one or more of which may be waived in whole or in part by Seller in its sole discretion):

 

(a)               
Purchase Price. Purchasers shall have transferred in immediately available funds the Aggregate Purchase Price pursuant
to, in accordance with and into the account or accounts designated in, Part I of Appendix B.

 

(b)              
Representations and Warranties. The representations and warranties set forth in Article 3 shall be true and
correct at and as of the Closing Date as if made at and as of such date (other than any representations or warranties that are
made as of a specific date, which shall be true and correct as of such date).

 

(c)               
Performance and Compliance. Purchasers shall have performed all of the covenants and complied, in all material respects,
with all the provisions required by this Agreement to be performed or complied with by it on or before the Closing.

 

(d)              
Certificate of Purchaser. Seller shall have received a certificate of each Purchaser dated the date of the Closing
confirming the matters set forth in Sections 5.3(b) and (c) in a form reasonably acceptable to Seller.

 

(e)               
Satisfactory Instruments. All instruments and documents required on the part of each Purchaser to effectuate and
consummate the transactions contemplated hereby shall be delivered to Seller and shall be in form and substance reasonably satisfactory
to Seller.

 

(f)               
Other Conditions Precedent to Seller’s Obligation to Close. The conditions precedent, if any, set forth in
Appendix B-5 shall have been satisfied or waived in whole or in part by Seller in Seller’s sole discretion.

 

5.4           Termination. If the Closing Date is not the date of this Agreement, the following termination provisions shall be
applicable:

 

(a)               
By the Parties. This Agreement may be terminated at any time by mutual written consent of Purchasers and Seller.

 

(b)              
By Either Party. This Agreement may be terminated at any time prior to the Closing by either Seller or either of
the Purchasers, if (i) a Governmental Approval required to be obtained as set forth on Part VII of Appendix B shall
have been denied and all appeals of such denial have been taken and have been unsuccessful, (ii) one or more courts of competent
jurisdiction in the United States or Canada (as applicable), any state, provincial or any other applicable jurisdiction has issued
an order permanently restraining, enjoining, or otherwise prohibiting the Closing, and such order has become final and non-appealable,
or (iii) the Closing has not occurred by the Outside Closing Date, but if such failure to close by the Outside Closing Date is
due to any breach of this Agreement by any party, such party shall not have any right to terminate this Agreement pursuant to
this clause (iii).

 

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(c)               
Other Termination Rights. This Agreement may be terminated at any time prior to the Closing by the applicable party
if and to the extent permitted in Part V of Appendix B.

 

(d)              
Termination Procedure. In the event of termination of this Agreement by any or all parties pursuant to this Section
5.4, written notice thereof will forthwith be given by the terminating party to the other parties and this Agreement will
terminate and the transactions contemplated hereby will be abandoned, without further action by any party. If this Agreement is
terminated as permitted by this Section 5.4, such termination shall be without liability of any party (or any stockholder,
shareholder, director, officer, employee, agent, consultant or representative of such party) to the other parties to this Agreement;
provided that (i) the foregoing will not relieve any party for any liability for willful and intentional material
breaches of its obligations hereunder occurring prior to such termination and (ii) except as specifically set forth herein,
nothing in this Agreement shall derogate from the provisions of the Purchase Rights Agreements, which agreements shall remain
in full force and effect after termination of this Agreement.

 

5.5            Purchaser Default or Waiver.

 

(a)               
Closing Notice. Upon the satisfaction of the conditions set forth in Sections 5.1 and 5.2, Seller
shall deliver a notice to Purchasers scheduling the date of the Closing (a “Closing Notice”), which
shall be at least ten (10) Business Days after the date of delivery of the Closing Notice. Subject to Sections 1.5(a)(iii)
and 4.1(a), if any Purchaser fails to confirm its willingness to proceed with the Closing within three (3) Business
Days after delivery of the Closing Notice, or confirms such willingness but subsequently fails to pay its Separate Purchase Price,
such Purchaser shall be deemed to be a “Defaulting Purchaser.” For greater certainty, a Purchaser shall
not be considered a Defaulting Purchaser where a condition to Closing in its favor (or a mutual condition to Closing in favor
of Purchasers and Seller) has not been fulfilled and it has elected not to waive such condition.

 

(b)              
PSP Breach. On the date scheduled for the Closing or within ten (10) days after the Closing, in the event that (i)
PSP is a Defaulting Purchaser (a “PSP Default”), or (ii) PEGI elects to waive a condition precedent
to Closing under Section 5.2 but PSP does not so elect (a “PEGI Waiver”), PEGI shall have the
right, exercisable in its sole discretion and by written notice to the other parties, to (A) fund the entire Aggregate Purchase
Price (including any Purchase Price Adjustment) within thirty (30) days following such PSP Default or PEGI Waiver, as applicable,
or as may be reasonably extended for PEGI to obtain financing, additional regulatory approvals or applicable internal consents
to consummate such funding, in which case, following the consummation of such funding, PEGI shall be the sole Purchaser of the
Acquired Interests under this Agreement, (B) decline to fund any amount under this Agreement, or (C) fund PEGI’s Separate
Purchase Price (including any Purchase Price Adjustment) only.

 

(c)               
PEGI Breach. On the date scheduled for the Closing or within ten (10) days after the Closing, in the event that
(i) PEGI is a Defaulting Purchaser (a “PEGI Default”), or (ii) PSP elects to waive a condition precedent
to Closing under Section 5.2 but PEGI does not so elect (a “PSP Waiver”), PSP shall have the
right, exercisable in its sole discretion and by written notice to the other parties, to (A) fund the entire Aggregate Purchase
Price (including any

 

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Purchase
Price Adjustment) within thirty (30) days following such PEGI Default or PSP Waiver, as applicable, or as may be reasonably extended
for PSP to obtain financing, additional regulatory approvals or applicable internal consents to consummate such funding, in which
case, following the consummation of such funding, PSP shall be the sole Purchaser of the Acquired Interests under this Agreement,
(B) decline to fund any amount under this Agreement, or (C) with the consent of Seller, fund PSP’s Separate Purchase Price
(including any Purchase Price Adjustment) only.

 

(d)              
Effect. In the event that either Purchaser funds the entire Aggregate Purchase Price pursuant to paragraph (b)(A)
or (c)(A) above, as applicable, the other Purchaser (whether or not it is a Defaulting Purchaser) shall not have any further obligations
pursuant to this Agreement and Seller shall have no claim against such other Purchaser under this Agreement or at Law. In the
event that either Purchaser declines to fund any amount under this Agreement or funds its Separate Purchase Price pursuant to
paragraph (b)(B) or (C) or paragraph (c)(B) or (C) above, as applicable, the other Purchaser shall remain subject to all its obligations,
and Seller shall retain all its rights against such other Purchaser, pursuant to this Agreement. For greater certainty, Seller
shall not have any claim against a Purchaser who elects not to waive a condition to Closing in its favor (or a mutual condition
to Closing in favor of Purchasers and Seller).

 

ARTICLE
6

REMEDIES FOR BREACHES OF THIS AGREEMENT

 

6.1            Indemnification.

 

(a)               
By Seller. Subject to the limitations set forth in this Article 6 and Section 7.14, from and after
the Closing, Seller agrees to indemnify and hold harmless each Purchaser and its Affiliates together with their respective directors,
officers, managers, employees and agents (each a “Purchaser Indemnified Party”) from and against any
and all Losses that any Purchaser Indemnified Party incurs by reason of or in connection with any of the following circumstances:

 

		(i)	any
                                         breach by Seller of any representation or warranty made by it in Article 2 (subject
                                         to any Updated Disclosure Schedules delivered pursuant to Section 4.1(c) that
                                         are deemed to cure a breach of any representation or warranty in accordance with the
                                         last sentence of Section 4.1(c)) or any breach or violation of any covenant, agreement
                                         or obligation of Seller contained herein; and

 

		(ii)	as
                                         set forth in Part VI of Appendix B.

 

(b)              
By Purchasers. Subject to the limitations set forth in this Article 6 and Section 7.14, from
and after the Closing, each Purchaser agrees to indemnify and hold harmless Seller and Seller’s Affiliates together with
their respective directors, officers, managers, employees and agents (each a “Seller Indemnified Party”)
from and against any and all Losses that any Seller Indemnified Party incurs by reason of or in connection with any of the following
circumstances:

 

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		(i)	any
                                         breach by such Purchaser of any representation or warranty made by it in Article 3
                                         or any breach or violation of any covenant, agreement or obligation of such Purchaser
                                         contained herein; and

 

		(ii)	as
                                         set forth in Part VI of Appendix B.

 

6.2            Limitations
on Seller’s or Purchasers’ Indemnification.

 

(a)              Minimum
Limit on Claims. A party required to provide indemnification under this Article 6 (an “Indemnifying Party”)
shall not be liable under this Article 6 to an Indemnified Party for any Claim for breach of any representation or warranty
unless and until the aggregate amount of all Claims for which it would, in the absence of this provision, be liable exceeds: (i)
in the event that Seller is the Indemnifying Party, the Basket Amount, and (ii) in the event that a Purchaser is the Indemnifying
Party, such Purchaser’s pro rata portion (based on its Percentage Portion) of the Basket Amount, and in each such
event the Indemnified Party will be liable for the amount of all Claims, including the Basket Amount; provided that the
foregoing limitation shall not apply in the case of actual fraud or willful misrepresentation by the Indemnifying Party.

 

(b)            Maximum Limit on Claims.

 

		(i)	Limitation
                                         on Seller’s Liability. Seller’s maximum aggregate liability for Claims
                                         for breaches of representations and warranties under this Agreement is limited to Seller’s
                                         Maximum Liability set forth in Part VI of Appendix B; provided that
                                         the Seller’s Maximum Liability will not apply to any Claim based on (A) actual
                                         fraud or willful misrepresentation or (B) any breach of the representations and warranties
                                         set forth in Sections 2.1, 2.2, 2.3, 2.5, 2.6, 2.9,
                                         2.11 and 2.18 (solely with respect to the Indebtedness of the Project Company,
                                         the General Partner and their respective Subsidiaries).

 

		(ii)	Limitation
                                         on Purchasers’ Liability. Purchasers’ maximum aggregate liability for
                                         Claims for breaches of representations and warranties under this Agreement is limited
                                         to Purchaser’s Maximum Liability set forth in Part VI of Appendix B;
                                         provided that the Purchaser’s Maximum Liability will not apply to any Claim
                                         based on (A) actual fraud or willful misrepresentation or (B) any breach of the representations
                                         and warranties set forth in Sections 3.1, 3.2, 3.3, 3.5 and
                                         3.10.

 

(c)           Time
Limit for Claims. No Indemnified Party may make a Claim for indemnification under Section 6.1 in respect of any
Claim unless notice in writing of the Claim, incorporating a statement setting out in reasonable detail the grounds on which
the Claim is based, has been given by the Indemnified Party prior to the expiration of the applicable Survival Period as set
forth in Part VI of Appendix B.

 

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6.3            Reimbursements;
Refunds.

 

(a)               
Right of Reimbursement. The amount of Losses payable under Section 6.1 by an Indemnifying Party shall be
net of any amounts recovered by the Indemnified Party under applicable insurance policies or from any other Person responsible
therefor. If the Indemnified Party receives any amounts under applicable insurance policies, or from any other Person responsible
for any Losses subsequent to an indemnification payment by the Indemnifying Party and such amounts would result in a duplicative
recovery, then such Indemnified Party shall promptly reimburse the Indemnifying Party for any payment made or expense incurred
by such Indemnifying Party in connection with providing such indemnification payment up to the amount received by the Indemnified
Party, net of any expenses incurred by such Indemnified Party in collecting such amount.

 

(b)              
Other Refund Obligations. In addition to the obligations set forth in Section 6.3(a), the applicable Indemnified
Party shall be obligated to reimburse or refund to the Indemnifying Party for payments made by it to such Indemnified Party under
this Article 6 as set forth in Part VI of Appendix B.

 

6.4            Right
to Control Proceedings for Third Party Claims.

 

(a)               
If a third party shall notify any party with respect to any matter that may give rise to a Claim (a “Third
Party Claim”), the Indemnified Party must give notice to the Indemnifying Party of the Third Party Claim (a “Third
Party Claim Notice”) within twenty (20) Business Days after it becomes aware of the existence of the Third Party
Claim and that it may constitute a Third Party Claim. The Indemnified Party’s failure to give a Third Party Claim Notice
in compliance with this Section 6.4(a) of any Third Party Claim which may give rise to a right of indemnification hereunder
shall not relieve the Indemnifying Party of any liability which it may have to the Indemnified Party unless, and solely to the
extent that, the failure to give such notice materially and adversely prejudiced the Indemnifying Party.

 

(b)              
The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to
assume control of the defense of any Third Party Claim with the Indemnifying Party’s own counsel, in each case at the Indemnifying
Party’s own cost and expense (provided that prior to assuming control of such defense, the Indemnifying Party must acknowledge
its indemnity obligations under this Article 6), and the Indemnified Party shall cooperate in good faith in such defense.
The Indemnified Party shall have the right, at its own cost and expense, to participate in the defense of any Third Party Claim
with separate counsel selected by it, subject to the Indemnifying Party’s right to control the defense thereof; provided
that in such event the Indemnifying Party shall pay the fees and expenses of such separate counsel (i) incurred by the Indemnified
Party prior to the date the Indemnifying Party assumes control of the defense of the Third Party Claim, (ii) if such Third Party
Claim would reasonably be expected to be materially detrimental to the business, reputation or future prospects of any Indemnified
Party or (iii) if representation of both the Indemnifying Party and the Indemnified Party by the same counsel would create a conflict
of interest. If the Indemnifying Party (i) fails to promptly notify the Indemnified Party in writing of its election to defend
or fails to acknowledge its indemnity obligations under this Article 6 as provided in this Agreement, (ii) elects not to
defend (or compromise at its sole cost and expense) such Third

 

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Party
Claim, (iii) has elected to defend such Third Party Claim but fails to promptly and diligently pursue the defense such Third Party
Claim, (iv) otherwise breaches any of its obligations under this Article 6 or (v) as set forth on Schedule 6.4(b)
hereto, or if the Third Party Claim is reasonably expected by the Indemnified Party to result in a payment obligation on the
Indemnified Party in an amount that exceeds the maximum indemnification then available to the Indemnified Party pursuant to this
Article 6, then the Indemnifying Party shall not be entitled to assume or maintain control of the defense of such Third
Party Claim and the Indemnified Party may (by written notice to the Indemnifying Party) assume control of such defense (in which
case the Indemnifying Party shall pay the fees and expenses of counsel retained by the Indemnified Party) and/or compromise such
Third Party Claim and seek indemnification for any and all Losses based upon, arising from or relating to such Third Party Claim.
The parties shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim.

 

(c)               
Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into any settlement of any
Third Party Claim without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld
or delayed), except as provided in this Section 6.4(c). If a firm offer is made to settle a Third Party Claim that (i)
does not (A) result in any liability or create any financial or other obligation on the part of the Indemnified Party and (B)
result in the loss of any right or benefit on the part of any Indemnified Party, (ii) does not impose injunctive or other equitable
relief against any Indemnified Party, and (iii) provides, in customary form, for the unconditional release of each Indemnified
Party from all liabilities and obligations in connection with such Third Party Claim, and the Indemnifying Party desires to accept
and agree to such firm offer, then the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If
the Indemnified Party fails to consent to such firm offer within twenty (20) days after its receipt of such notice, the Indemnified
Party may continue to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party
as to such Third Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to
such firm offer within such twenty (20) day period and also fails to assume defense of such Third Party Claim, the Indemnifying
Party may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified
Party has assumed the defense pursuant to Section 6.4(b), it may settle the Third Party Claim; provided that if
the settlement is made without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld
or delayed), the Indemnifying Party shall have no indemnity obligation pursuant to this Article 6 with respect to such
Third Party Claim.

 

6.5           Mitigation;
Treatment of Indemnification.

 

(a)               
The Indemnified Party shall use commercially reasonable efforts to mitigate all Losses relating to a Claim for which indemnification
is sought under this Article 6.

 

(b)              
All indemnification payments under this Article 6 shall be deemed adjustments to the Aggregate Purchase Price.

 

6.6           Exclusive Remedy. Seller and Purchasers acknowledge and agree that, should the Closing occur, and excluding liability
for actual fraud or willful misrepresentation, the foregoing

 

    24

     

    

indemnification
provisions of this Article 6 and the provisions of Section 7.15 shall be the sole and exclusive remedy of Seller
and Purchasers with respect to any misrepresentation, breach of warranty, covenant or other agreement (other than any Purchase
Price Adjustment set forth in Part I of Appendix B) or other claim arising out of this Agreement or the
transactions contemplated hereby. Without limiting the generality of the foregoing, effective as of the Closing each of the Purchasers
and Seller covenants to the other party that in respect of any matters under or contemplated in this Agreement, it will not make
any Claim whatsoever against any Affiliate of the other party or the directors, officers, managers, shareholders, member, controlling
persons, employees and agents of any of the foregoing, in each case in their capacities as such, and its rights in respect of
any such Claim for breach of any provision of this Agreement are limited solely to such rights as it may have against Seller or
Purchasers, as the case may be, under this Agreement.

 

6.7             
Purchaser Indemnification Decisions. Each Purchaser may bring a Claim for indemnification pursuant to this Article
6. If both Purchasers initiate substantially the same Claim (a “Joint Claim”), PEGI shall have the
right to assume control of the prosecution of such Joint Claim but may not enter into any settlement with the Indemnifying Party
that purports to bind PSP with respect to such Joint Claim without the prior written consent of PSP (such consent not to be unreasonably
withheld, conditioned or delayed). If PEGI has elected to prosecute such Joint Claim but fails to promptly and diligently pursue
the same, then PSP may (by written notice to PEGI) assume control of the prosecution of such Joint Claim but may not enter into
any settlement with the Indemnifying Party with respect to such Joint Claim that purports to bind PEGI without the prior written
consent of PEGI (such consent not to be unreasonably withheld, conditioned or delayed). Neither Purchaser may enter into any settlement
with respect to any Joint Claim solely for itself (i.e., any settlement that does not purport to bind the other Purchaser) without
first notifying the other Purchaser and giving the other Purchaser a reasonable opportunity to participate in such settlement.
The expenses of the prosecution of any Joint Claim shall be borne by both Purchasers pro rata in accordance with their
Percentage Portion.

 

ARTICLE
7

MISCELLANEOUS

 

7.1             
Entire Agreement. This Agreement and the Schedules and Appendices hereto, each of which is hereby incorporated herein,
set forth all of the promises, covenants, agreements, conditions, undertakings, representations and warranties between the parties
hereto with respect to the subject matter hereof and supersede all prior and contemporaneous agreements and understandings, inducements
or conditions, express or implied, oral or written.

 

7.2             
Notices. All notices, requests, demands and other communications hereunder shall be in writing (including facsimile
transmission and electronic mail (“email”) transmission and shall be deemed to have been duly given if personally
delivered, telefaxed (with confirmation of transmission), e-mailed (so long as confirmation of receipt is requested and received)
or, if mailed, when mailed by United States first-class or Canadian Lettermail or Letter-post (as the case may be), certified
or registered mail, postage prepaid, or by any international or national overnight delivery service, to the other party at the
addresses as set forth in Part VII of Appendix B (or at such other address as shall be given in writing by any party
to the other). All such notices, requests, demands and other communications shall be deemed

 

    25

     

    

received
on the date of receipt by the recipient thereof if received prior to 5 p.m. in the place of receipt and such day is a Business
Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until
the next succeeding Business Day in the place of receipt.

 

7.3            Successors
and Assigns.

 

(a)               
No party shall assign this Agreement or any of its rights or obligations herein without the prior written consent of the
other parties, in their sole discretion, except as provided herein and except that any party may assign this Agreement or any
of its rights or obligations herein to an Affiliate of such party but the assigning party shall continue to be liable for all
of its obligations hereunder following any such assignment. Subject to the foregoing, this Agreement, and all rights and powers
granted hereby, will bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

(b)              
Notwithstanding Section 7.3(a), each of Seller and each Purchaser may assign this Agreement without the consent
of the other parties as specified in Part VII of Appendix B.

 

7.4            Jurisdiction;
Service of Process; Waiver of Jury Trial.

 

(a)               
EACH OF THE PARTIES HERETO WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED
ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(b)              
Any and all claims, counterclaims, demands, causes of action, disputes, controversies, and other matters in question arising
out of or relating to this Agreement, or the alleged breach hereof, or in any way relating to the subject matter of this Agreement
or the relationship between the parties created by this Agreement (hereafter, a “Dispute”), except for
any claims for specific performance as set forth in Section 7.15, shall be finally resolved by binding arbitration administered
by the American Arbitration Association (“AAA”) under the AAA Commercial Arbitration Rules, including
the Procedures for Large, Complex Commercial Disputes (the “Rules”) then in force to the extent such
Rules are not inconsistent with the provisions of this Agreement. The party or parties commencing arbitration shall deliver to
the other party or parties a written notice of intent to arbitrate (a “Demand”) in accordance with Rule
R-4. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§1 et seq.

 

		(i)	Selection
                                         of Arbitrators. Disputes shall be resolved by a panel of three independent and impartial
                                         arbitrators, (the “Arbitrators”). The party or parties initiating
                                         the arbitration shall appoint an arbitrator in its or their Demand; the responding party
                                         or parties shall appoint an arbitrator in its or their answering statement, which is
                                         due thirty (30) days after receipt of the Demand. If any party fails or refuses to timely
                                         nominate an arbitrator within the time permitted, such arbitrator shall be appointed
                                         by the AAA from individuals with significant experience in renewable energy

 

    26

     

    

projects
from its Large, Complex Commercial Case Panel. Within thirty (30) days of the appointment of the second arbitrator, the two party-appointed
arbitrators shall appoint the third arbitrator, who shall act as the chair of the arbitration panel. If the two party-appointed
arbitrators fail or refuse to appoint the third arbitrator within such thirty (30)-day period, the third arbitrator shall be appointed
by the AAA from individuals with significant experience in renewable energy projects from its Large, Complex Commercial Case Panel
in accordance with Rule R-12. The Arbitrators, acting by majority vote, shall resolve all Disputes.

 

		(ii)	Confidentiality.
                                         To the fullest extent permitted by law, the arbitration proceedings and award shall be
                                         maintained in confidence by the parties.

 

		(iii)	Place
                                         of Arbitration. The place of arbitration shall be New York, New York. Any action
                                         in connection therewith shall be brought in the United States District Court for the
                                         Southern District of New York or, if that court does not have jurisdiction, any New York
                                         state court in New York County. Each party consents to the exclusive jurisdiction of
                                         such courts in any such suit, action or proceeding, and irrevocably waives, to the fullest
                                         extent permitted by law, any objection which it may now or hereafter have to the laying
                                         of the venue of any such suit, action or proceeding in any such court or that any such
                                         suit, action or proceeding which is brought in any such court has been brought in an
                                         inconvenient forum. Each party further agrees to accept service of process out of any
                                         of the before mentioned courts in any such dispute by registered or certified mail addressed
                                         to the party at the address set forth in Part VII of Appendix B.

 

		(iv)	Conduct
                                         of the Arbitration. The arbitration shall be conducted in accordance with the Rules
                                         and in a manner that effectuates the parties’ intent that Disputes be resolved
                                         expeditiously and with minimal expense. The Arbitrators shall endeavor to commence the
                                         arbitration hearing within one hundred and eighty (180) days of the third arbitrator’s
                                         appointment.

 

		(v)	Interim
                                         Relief. Any party may apply to the Arbitrators seeking injunctive relief until the
                                         arbitration award is rendered or the controversy is otherwise resolved. Any party also
                                         may, without waiving any remedy under this Agreement, seek from any court having jurisdiction
                                         any interim or provisional relief that is necessary to protect the rights or property
                                         of that party, pending the establishment of the arbitral tribunal (or pending the Arbitrators’
                                         determination of the merits of the controversy).

 

    27

     

    

		(vi)	Discovery.
                                         The Arbitrators, upon a showing of good cause, may require and facilitate such limited
                                         discovery as it shall determine is appropriate in the circumstances, taking into account
                                         the needs of the parties, the burden on the parties, and the desirability of making discovery
                                         limited, expeditious, and cost-effective. The Arbitrators shall issue orders to protect
                                         the confidentiality of proprietary information, trade secrets and other sensitive information
                                         disclosed in discovery.

 

		(vii)	Arbitration
                                         Award. The Arbitrators shall endeavor to issue a reasoned, written award within thirty
                                         (30) days of the conclusion of the arbitration hearing. The Arbitrators shall have the
                                         authority to assess some or all of the costs and expenses of the arbitration proceeding
                                         (including the Arbitrators’ fees and expenses) against any party. The Arbitrators
                                         shall also have the authority to award attorneys’ fees and expenses to the prevailing
                                         party or parties. In assessing the costs and expenses of the arbitration and/or awarding
                                         attorneys’ fee and expenses, the Arbitrators shall consider the relative extent
                                         to which each party has prevailed on the disputed issues and the relative importance
                                         of those issues. The limitations of Section 7.14 shall apply to any award
                                         by the Arbitrators.

 

7.5             
Headings; Construction; and Interpretation. The headings preceding the text of the sections and subsections hereof
are inserted solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its
meaning, construction or effect. Except as otherwise expressly provided, the rules of construction set forth in Appendix A-2
shall apply to this Agreement. The parties agree that any rule of law or any legal decision that would require interpretation
of any claimed ambiguities in this Agreement against the party that drafted it has no application and is expressly waived.

 

7.6             
Further Assurances. Each party shall cooperate and take such action as may be reasonably requested by the other
party in order to carry out the provisions and purposes of this Agreement and the transactions contemplated hereby.

 

7.7             
Amendment and Waiver. The parties may by mutual agreement amend this Agreement in any respect, and any party, as
to such party, may (a) extend the time for the performance of any of the obligations of any other party, (b) waive any
inaccuracies in representations by any other party, (c) waive compliance by any other party with any of the agreements contained
herein and performance of any obligations by such other party, and (d) waive the fulfillment of any condition that is precedent
to the performance by such party of any of its obligations under this Agreement. To be effective, any such amendment or waiver
must be in writing and be signed by the party against whom enforcement of the same is sought.

 

7.8             
No Other Beneficiaries. This Agreement is being made and entered into solely for the benefit of Purchasers and Seller,
and neither Purchasers nor Seller intends hereby to create any rights in favor of any other Person as a third party beneficiary
of this Agreement or otherwise.

 

    28

     

    

7.9             
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction
specified in Part VII of Appendix B.

 

7.10         
Schedules. References to a Schedule shall include any disclosure expressly set forth on the face of any other Schedule
even if not specifically cross-referenced to such other Schedule to the extent that the relevance of such matter is reasonably
apparent on the face thereof. The fact that any item of information is contained in a disclosure schedule shall not be construed
as an admission of liability under any Governmental Rule, or to mean that such information is material. Such information shall
not be used as the basis for interpreting the term “material”, “materially” or any similar qualification
in this Agreement.

 

7.11         
Limitation of Representations and Warranties. Purchasers acknowledge that except as expressly provided in Article
2 of this Agreement, Seller has not made, and Seller hereby expressly disclaims and negates, and each of the Purchasers hereby
expressly waive, any other representation or warranty, express, implied, at Law or otherwise relating to the Acquired Interests,
Seller or Seller Affiliates, the Project Company, the Wind Project or this Agreement.

 

7.12         
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but which together shall constitute one and the same instrument. A facsimile or electronically imaged version of this Agreement
may be executed by one or more parties hereto and an executed copy of this Agreement may be delivered by one or more parties hereto
by facsimile or “PDF” electronic mail pursuant to which the signature of or on behalf of such party can be seen, and
such execution and delivery shall be considered valid, binding and effective for all purposes.

 

7.13         
Severability. If any provision of this Agreement or any other agreement entered into pursuant hereto is contrary
to, prohibited by or deemed invalid under applicable law or regulation, such provision shall be inapplicable and deemed omitted
to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall be given
full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

7.14         
Limit on Damages. Each party hereto acknowledges and agrees that neither party shall be liable to the other party
for any punitive damages (except to the extent paid to a third party in respect of a Third Party Claim) or damages that were not
reasonably foreseeable.

 

7.15         
Specific Performance. The parties hereto agree that irreparable damage would occur if any provision of this Agreement
were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions
to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in any court
of competent jurisdiction, in addition to any other remedy to which they are entitled at law or in equity.

    29

     

    

 

[SIGNATURE
PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

 

 

    30

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Purchase and Sale Agreement as of the day and year first above written.

 

 

 

	Pattern Energy Group Inc. 	 
	 	 
	 	 	 
	By: 	  /s/ Esben Pedersen	 
	Its:	Esben Pedersen  	 
	 	Chief Investment Officer  	 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to the Meikle Purchase and Sale Agreement]

    

     

    

 

 

	 VERTUOUS ENERGY CANADA INC. 	 
	 	 
	 	 
	 By:
	/s/ Guthrie
Stewart	 
	Its: 	Guthrie Stewart	 
	 	 Vice-President	 
	 	 	 
	 	 	 
	By:	 /s/ Patrick Samson	 
	Its:	Patrick Samson 	 
	 	Vice President
  	 

 

 

 

 

      
  

 

 

 

 

 

 

 

 

 

 

[Signature Page to the Meikle Purchase
and Sale Agreement]

    

     

    

 

	Pattern Energy Group LP	 
	 	 
	 	 
	
By:	
/s/ Daniel M. Elkort	 
	Its:	Daniel M. Elkort 	 
	 	Vice President	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to the Meikle Purchase and Sale Agreement]

 
 

    

     

    

APPENDIX
A-1: GENERAL DEFINITIONS

(as applicable and to the extent used in the final Agreement)

 

“AAA”
shall have the meaning set forth in Section 7.4(b).

 

“Accounting
Referee” shall have the meaning set forth in Section 4.2(f).

 

“Acquired
Interests” shall have the meaning set forth in the recitals, as more fully described in Part I of Appendix
C.

 

“Affiliate”
means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with the Person specified, or who holds or beneficially owns 50% or more of the equity
interest in the Person specified or 50% or more of any class of voting securities of the Person specified; provided that
notwithstanding the foregoing (a) Purchasers and their respective Subsidiaries shall not be deemed to be Affiliates of Seller
and (b) Seller and its Affiliates (other than Purchasers and their respective Subsidiaries) shall not be deemed to be Affiliates
of any Purchaser.

 

“Aggregate
Purchase Price” shall have the meaning set forth in Section 1.1, and is more particularly described in Part
I of Appendix B.

 

“Agreement”
shall have the meaning set forth in the preamble to this Agreement.

 

“Amended
and Restated Limited Partnership Agreement” means the Amended and Restated Limited Partnership Agreement in respect
of the Project Company, made as of the date of Closing, among the General Partner and the Purchasers, substantially in the form
attached hereto as Exhibit A.

 

“Arbitrators”
shall have the meaning set forth in Section 7.4(b).

 

“ARC”
means an advance ruling certificate issued by the Commissioner of Competition pursuant to subsection 102(1) of the Competition
Act with respect to the transactions contemplated by this Agreement.

 

“Basket
Amount” shall have the meaning set forth in Part VI of Appendix B.

 

“Books
and Records” means books, Tax Returns, contracts, commitments, and records of a Person.

 

“Business
Day” means any day other than a Saturday, a Sunday or any other day on which banks are authorized to be closed in
New York, New York or Montreal, Québec.

 

“Canadian
Tax Act” shall have the meaning set forth in Section 2.9(a).

 

“Centrica
Energy” shall have the meaning set forth in Part II of Appendix C.

 

“Claim”
means a claim by an Indemnified Party for indemnification pursuant to Section 6.1.

 

    App. A-1 - 1

     

    

“Closing”
shall have the meaning set forth in Section 1.4.

 

“Closing
Date” shall mean the date a Closing occurs.

 

“Closing
Notice” shall have the meaning set forth in Section 5.5(a).

 

“Commissioner
of Competition” means the Commissioner of Competition appointed pursuant to the Competition Act or a Person designated
or authorized pursuant to the Competition Act to exercise the powers and perform the duties of the Commissioner of Competition.

 

“Competition
Act” means the Competition Act (Canada).

 

“Competition
Act Approval” means any of: (a) the issuance of an ARC and such ARC has not been rescinded prior to Closing,
or (b)  Purchasers and the Seller have given the notice required under Section 114 of the Competition Act with respect
to the transactions contemplated by this Agreement and the applicable waiting period under Section 123 of the Competition
Act has expired or has been terminated in accordance with the Competition Act, or (c) the obligation to give the requisite
notice has been waived pursuant to paragraph 113(c) of the Competition Act, and in the case of (b) and (c), Purchasers have been
advised in writing by the Commissioner of Competition that the Commissioner of Competition, at that time, does not intend to make
an application under Section 92 of the Competition Act in respect of the transactions contemplated by this Agreement, and
such advice has not been rescinded prior to Closing.

 

“Consent”
means any consent, approval, order or Permit of or from, or registration, declaration or filing with or exemption by any Person,
including a Governmental Authority.

 

“Contract”
means any agreement, lease, license, obligation, plan, arrangement, purchase order, commitment, evidence of indebtedness, mortgage,
indenture, security agreement or other contract (whether written or oral) entered into by a Person or by which a Person or any
of its assets are bound.

 

“Defaulting
Purchaser” shall have the meaning set forth in Section 5.5(a).

 

“Demand”
shall have the meaning set forth in Section 7.4(b).

 

“Dispute”
shall have the meaning set forth in Section 7.4(b).

 

“Dollars”
or “$” means the lawful currency of the United States of America or Canada, as identified in Part
I of Appendix B.

 

“Environmental
Claim” means any suit, action, demand, directive, claim, Lien, written notice of noncompliance or violation, allegation
of liability or potential liability, or proceeding made or brought by any Person in each case (a) alleging any liability under
or violation of or noncompliance with any applicable Environmental Law, (b) with respect to the release of or exposure to Hazardous
Substances, or (c) with respect to noise pollution or visual impacts, including shadow flicker.

 

    App. A-1 - 2

     

    

“Environmental
Law” means any Law pertaining to the environment, natural resources, human health and safety in connection with
exposure to Hazardous Substances, and physical and biological natural resources, including, but not limited to, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.), and the Superfund Amendments and
Reauthorization Act of 1986, the Emergency Planning and Community Right to Know Act (42 U.S.C. §§ 11001 et seq.), the
Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.), and the Hazardous and Solid Waste Amendments
Act of 1984, the Clean Air Act (42 U.S.C. §§ 7401 et seq.), the Federal Water Pollution Control Act (also known as the
Clean Water Act) (33 U.S.C. §§ 1251 et seq.), the Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.),
the Safe Drinking Water Act (42 U.S.C. §§ 300f et seq.), the Endangered Species Act (16 U.S.C. §§ 1531 et
seq.), the Migratory Bird Treaty Act (16 U.S.C. §§ 703 et seq.), the Bald and Golden Eagle Protection Act (16 U.S.C.
§§ 668 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. §§ 2701 et seq.), the Hazardous Materials Transportation
Act (49 U.S.C. §§ 1801 et seq.), and any similar or analogous state, provincial, local and municipal Laws, in effect
as of the date hereof or the Closing Date, as applicable.

 

“EPA”
shall have the meaning set forth in Part I of Appendix D.

 

“Expected
Closing Date” shall have the meaning set forth in Part III of Appendix B.

 

“Financial
Model” means the financial model for the Wind Project.

 

“Financial
Statements” means (a) the annual unaudited unconsolidated financial statements of income and cash flows of the Project
Company for the year ended December 31, 2016 and the related balance sheet as at December 31, 2016, in each case setting forth
in comparative form the corresponding figures for the preceding year; and (b) the unaudited unconsolidated financial statements
of income and cash flows and the related balance sheet of the Project Company to be delivered prior to the Closing Date pursuant
to Appendix B-1, in each case prepared in accordance with GAAP.

 

“First
Nations” means any governing body of any first nations, Métis and/or indigenous and/or aboriginal tribe(s)
and/or band(s).

 

“GAAP”
means generally accepted accounting principles used by the Project Company to prepare the Financial Statements, consistently applied
throughout the specified period and in the immediately prior comparable period.

 

“General
Partner” shall have the meaning set forth in Section 2.9(a).

 

“Governmental
Authority” 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) having jurisdiction over the matter or Person in question.

 

    App. A-1 - 3

     

    

“Governmental
Rule” means, with respect to any Person, any applicable law, statute, treaty, rule, regulation, ordinance, order,
code, judgment, decree, injunction or writ issued by any Governmental Authority.

 

“GP
Interest” shall have the meaning set forth in Part I of Appendix C.

 

“GST/HST”
means taxes imposed under the GST/HST Legislation.

 

“GST/HST
Legislation” means Part IX of the Excise Tax Act (Canada) and any provincial or territorial equivalent.

 

“Hazardous
Substances” means all substances, materials, chemicals, wastes or pollutants that are defined, regulated, listed
or prohibited under Environmental Law, including without limitation, (i) asbestos or asbestos containing materials, radioactive
materials, lead, and polychlorinated biphenyls, any petroleum or petroleum product, solid waste, mold, mycotoxin, urea formaldehyde
foam insulation and radon gas; (ii) any waste or substance that is listed, defined, designated or classified as, or otherwise
determined by any Environmental Law to be, ignitable, corrosive, radioactive, dangerous, toxic, explosive, infectious, radioactive,
mutagenic or otherwise hazardous; (iii) any pollutant, contaminant, waste, chemical, deleterious substances or other material
or substance (whether solid, liquid or gas) that is defined as a “solid waste,” “hazardous waste,” “hazardous
material,” “hazardous substance,” “extremely hazardous waste,” “restricted hazardous waste,”
“pollutant,” “contaminant,” “hazardous constituent,” “special waste,” “toxic
substance,” or a word, term, or phrase of similar meaning or regulatory effect under any Environmental Law.

 

“HSR
Act Approval” means that the applicable waiting period under the HSR Act will have expired or been terminated.

 

“Indebtedness”
means all obligations of a Person (a) for borrowed money (including principal, accrued and unpaid interest, fees due, and any
other amounts due), whether or not contingent, (b) evidenced by notes, bonds, debentures, mortgages or similar instruments or
debt securities, (c) for the deferred purchase price of property, goods or services (other than trade payables or accruals incurred
in the ordinary course of business and not past due), including all seller notes and “earn out” payments, (d) under
capital leases, (e) secured by a Lien on the assets of such Person, whether or not such obligation has been assumed by such Person,
(f) with respect to reimbursement obligations for letters of credit, performance bonds and other similar instruments (whether
or not drawn), (g) under any interest rate, currency or other hedging agreement (including collars) or commitment therefor, (h)
to repay deposits or other amounts advanced by and owing to third parties, (i) under conditional sale or other title retention
agreements relating to property purchased by such Person, (j) in the nature of guaranties of the obligations described in clauses
(a) through (i) above of any other Person or as to which such Person has an obligation substantially the economic equivalent of
a guaranty, or (k) in respect of any other amount properly characterized as indebtedness in accordance with GAAP.

 

“Indemnified
Party” means either a Purchaser Indemnified Party or a Seller Indemnified Party, as the case may be.

 

“Indemnifying
Party” shall have the meaning set forth in Section 6.2(c).

 

    App. A-1 - 4

     

    

“Intellectual
Property” means all intellectual property rights, including, without limitation, (a) patents, patent applications,
patent disclosures and inventions, (b) Internet domain names, trademarks, trade names, service marks, trade dress, trade names,
logos and corporate names and registration and applications for registration of any item listed in clause (b), together with all
of the goodwill associated therewith, (c) copyrights (registered or unregistered), works of authorship and copyrightable works,
and registrations and applications for registration of any item in this clause (c), (d) computer software (whether in source code,
object code or other form), data, databases and any documentation related to any item listed in this clause, (e) trade secrets
and other confidential information (including confidential and proprietary know how, ideas, formulas, compositions, recipes, inventions
(whether patentable or unpatentable and whether or not reduced to practice), manufacturing and production processes, procedures
and techniques, research and development information, drawings, blueprints, specifications, designs, plans, proposals, technical
data, financial and marketing plans and customer and supplier lists and information), (f) all rights of privacy and publicity,
(g) other intellectual property rights and (h) copies and tangible embodiments thereof (in whatever form or medium).

 

“Interconnection
Agreement” shall have the meaning set forth in Part I of Appendix D.

 

“Joint
Claim” shall have the meaning set forth in Section 6.7.

 

“Knowledge”
means (a) with respect to Seller, the actual knowledge of the persons identified in Part VII of Appendix B, which
shall include at a minimum (i) the senior developer responsible for the Wind Project, (ii) the construction manager responsible
for the Wind Project, (iii) the transaction counsel responsible for the financing of the Wind Project and (iv) the finance manager
responsible for the financing of the Wind Project and (b) with respect to each Purchaser, the actual knowledge of the persons
identified in Part VII of Appendix B opposite the name of such Purchaser.

 

“Laws”
means all common law, laws, by-laws, statutes, treaties, rules, Orders, rulings, decisions, judgments, injunctions, awards, decrees,
codes, ordinances, standards, regulations, restrictions, official guidelines, policies, directives, interpretations, Permits or
like action having the effect of law of any Governmental Authority.

 

“Lease”
means a lease, ground lease, sublease, license, concession, easement, right of way, encroachment agreement, municipal right of
way agreements, and road user agreements or other written agreement, including any option relating thereto, in each case, governing
real property, to which the Project Company, the General Partner or any of their respective Subsidiaries is a party.

 

“Lien”
on any asset means any mortgage, deed of trust, lien, hypothec, pledge, charge, security interest, restrictive covenant, right
of first refusal, right of first offer, easement or encumbrance of any kind in respect of such asset, whether or not filed, recorded
or otherwise perfected or effective under applicable law, as well as the interest of a vendor or lessor under any conditional
sale agreement, capital lease or other title retention agreement relating to such asset.

 

“Loss”
means any and all losses (including loss of profit and loss of expected profit), claims, actions, liabilities, damages, expenses,
diminution in value or deficiencies of any kind or character including all interest and other amounts payable to third parties,
all liabilities on

 

    App. A-1 - 5

     

    

account
of Taxes and all reasonable legal fees and expenses and other expenses reasonably incurred in connection with investigating or
defending any claims or actions, whether or not resulting in any liability.

 

“Material
Adverse Effect” means any circumstance, matter, condition, development, change, event, occurrence, state of affairs,
or effect that, individually or in the aggregate, is or would reasonably be expected to have a material adverse effect on (a)
the business, results of operations, assets or liabilities, financial condition or properties of the Project Company and its Subsidiaries,
taken as a whole, or (b) the ability of Seller to consummate the transactions contemplated by this Agreement or otherwise perform
any of its obligations under this Agreement; provided, however, none of the following shall be deemed (either alone
or in combination) to constitute, and none of the following shall be taken into account in determining whether there has been,
a Material Adverse Effect:

 

(a)               
any change in general economic, political or business conditions;

 

(b)              
changes resulting from acts of war or terrorism or any escalation or worsening of any such acts of war or terrorism threatened
or underway as of the date of this Agreement;

 

(c)               
changes or developments generally affecting the power services industry;

 

(d)              
any changes in accounting requirements or principles imposed by GAAP after the date of this Agreement;

 

(e)               
any changes in applicable Law after the date of this Agreement;

 

(f)               
changes in the wind power industry that, in each case, generally affect companies in such industry;

 

provided
that the incremental extent of any disproportionate change, event, occurrence, development, effect, condition, circumstance
or matter described in clauses (a) through (f) with respect to the Project Company and its Subsidiaries, taken as a whole, relative
to other similarly situated businesses in the wind power industry may be considered and taken into account in determining whether
there has been a Material Adverse Effect.

 

“Material
Contract” means (i) any Material Lease, (ii) the Contracts set forth in Part I of Appendix D, (iii)
the Term Loan Agreement, and (iv) any other Contract not otherwise set forth in Part I of Appendix D that affects
the Operating Period to which the Project Company, the General Partner or any of their respective Subsidiaries is a party or by
which the Project Company, the General Partner or any of their respective Subsidiaries, or any of their respective assets, is
bound (A) providing for past or future payments by or to the Project Company, the General Partner or any of their respective Subsidiaries
in excess of $500,000 annually or $1,000,000 in the aggregate, (B) relating to any partnership, joint venture or other similar
arrangement, (C) relating to any Indebtedness, (D) limiting the freedom of the Project Company, the General Partner or any
of their respective Subsidiaries to compete in any line of business or with any Person or in any area or granting “most
favored nation” or similar status, (E) with Seller or any of its Affiliates, (F) with either Purchaser or any of its Affiliates,
(G) relating to the

 

    App. A-1 - 6

     

    

acquisition
or disposition of any business or material portion thereof (whether by merger, sale of stock, sale of assets or otherwise), (H)
that was not entered into in the ordinary course of business of the Project Company or any of its Subsidiaries, (I) with any First
Nations; or (J) the loss of which would result in a Material Adverse Effect.

 

“Material
Contract Change” shall have the meaning set forth in Section 4.1(a).

 

“Material
Leases” means all Leases related to the Wind Project (i) the loss of which would result in a reduction in production
of the Wind Project or in its ability to deliver energy to the point of interconnection or would otherwise result in a Material
Adverse Effect, or (ii) that are otherwise material to the operations of the Wind Project.

 

“Multi-Tenure
Agreement” shall have the meaning set forth in Part II of Appendix C.

 

“Operating
Period” means, in respect of the Wind Project, the period commencing on the Commercial Operation Date (however titled)
under any power purchase agreement to which the Project Company is a party.

 

“Order”
means any writ, judgment, injunction, ruling, decision, order or similar direction of any Governmental Authority, whether preliminary
or final.

 

“Organization
Documents” means, with respect to (a) any corporation, its articles or certificate of incorporation and by-laws,
(b) any limited partnership, its certificate or declaration of limited partnership and its partnership agreement, (c) any limited
liability company, its articles or certificate of organization or formation and its operating agreement or limited liability company
agreement, or (d) any other Person, documents of similar substance.

 

“Outside
Closing Date” shall have the meaning set forth in Part III of Appendix B.

 

“PCFC”
shall have the meaning set forth in Part I of Appendix C.

 

“PEGI
Default” shall have the meaning set forth in Section 5.5(c).

 

“PEGI
Waiver” shall have the meaning set forth in Section 5.5(a).

 

“Percentage
Portion” shall have the meaning set forth in the recitals to this Agreement, and is more particularly described
in Part I of Appendix C.

 

“Permitted
Lien” means any of the following: (a) Liens for Taxes either not yet due and payable or being contested in good
faith through appropriate proceedings and for which adequate reserves have been established in the Project Company’s balance
sheet in accordance with GAAP; (b) inchoate mechanics’ and materialmen’s Liens for work in progress and workmen’s,
repairmen’s, warehousemen’s and carrier’s Liens arising in the ordinary course of business either for amounts
not yet due or which have not been perfected, filed or registered in accordance with applicable Law against the Project Company,
the General Partner or any of their respective Subsidiaries, the Wind Project or the Project Company Real Property; (c) as to
any Project Company Real Property, title defects, easements, rights of first refusal, restrictions, irregularities, encumbrances
(other than for borrowed money), encroachments, servitudes, rights of way and

 

    App. A-1 - 7

     

    

statutory
Liens that do not or would not reasonably be expected to materially impair the value or use by the Project Company, the General
Partner or any of their respective Subsidiaries of the Project Company Real Property; (d) reservations, limitations, provisos
and conditions expressed in (x) any original grant from the Crown or (y) or other grants of real or immovable property that
do not or would not reasonably be expected to materially impair the value or use by the Project Company, the General Partner or
any of their respective Subsidiaries of such real or immovable property; (e) security given to a public utility or any Governmental
Authority when required by such utility or authority in connection with the operations of the Project Company in the ordinary
course of business; and (f) Liens granted pursuant to the Term Loan Agreement.

 

“Permit”
means filings, registrations, licenses, permits, notices, technical assistance letters, decrees, certificates, approvals, consents,
waivers, Orders, authorizations, agreements, directions, instructions, grants, easements, exemptions, exceptions, variances and
authorizations to or from any Governmental Authority.

 

“Person”
means any individual, corporation, partnership, limited partnership, limited liability partnership, trust, business trust, estate,
joint venture, unincorporated association, limited liability company, cooperative, Governmental Authority or other entity.

 

“Personal
Property” means all office equipment, machinery, equipment, supplies, vehicles, tractors, trailers, tools, spare
parts, production supplies, furniture and fixtures and other items of tangible personal property owned by any of the Project Company,
the General Partner or any of their respective Subsidiaries used primarily in connection with ownership, maintenance or operation
of the Wind Project.

 

“Post-Closing
Contingency Receipt” shall have the meaning set forth in Part I of Appendix B.

 

“Project
Agreement” shall have the meaning set forth in Part IV of Appendix D.

 

“Project
Company” shall have the meaning set forth in the recitals to this Agreement, and is more particularly described
in Part I of Appendix C of the Agreement.

 

“Project
Company Real Property” means all real property of the Project Company, the General Partner or any of their respective
Subsidiaries, together with all buildings, structures, improvements and fixtures of the Wind Project thereon, (i) held pursuant
to a Material Lease or (ii) required to be set forth on Part II of Appendix C.

 

“PSP
Default” shall have the meaning set forth in Section 5.5(a).

 

“PSP
Waiver” shall have the meaning set forth in Section 5.5(c).

 

“Purchase
Price Adjustment” shall have the meaning set forth in Part I of Appendix B.

 

“Purchase
Rights Agreements” means, collectively, (a) that certain Amended and Restated Purchase Rights Agreement dated as
of June 16, 2017 by and among Seller, Pattern Energy Group Inc. and, solely with respect to Article IV thereof, Pattern Energy
Group Holdings LP and Pattern Energy GP LLC, as such agreement is amended, modified or supplemented in accordance with its terms
and (b) that certain Amended and Restated Purchase Rights Agreement

 

    App. A-1 - 8

     

    

dated as
of June 16, 2017 by and among Pattern Energy Group 2 LP, Pattern Energy Group Inc. and, solely with respect to Article III
thereof, Pattern Energy Group Holdings 2 LP and Pattern Energy Group Holdings 2 GP LLC, as such agreement is amended, modified
or supplemented in accordance with its terms.

 

“Purchaser”
shall have the meaning set forth in the preamble to this Agreement.

 

“Purchaser
Indemnified Party” shall have the meaning set forth in Section 6.1(a).

 

“Purchaser’s
Maximum Liability” shall have the meaning set forth in Part VI of Appendix B.

 

“Rules”
shall have the meaning set forth in Section 7.4(b).

 

“Securities
Act” shall have the meaning set forth in Section 2.10.

 

“Seller”
shall have the meaning set forth in the preamble to this Agreement.

 

“Seller
Affiliate” shall have the meaning set forth in the recitals to this Agreement.

 

“Seller
Indemnified Party” shall have the meaning set forth in Section 6.1(b).

 

“Seller
Receipt” shall have the meaning set forth in Part I of Appendix B.

 

“Seller’s
Maximum Liability” shall have the meaning set forth in Part VI of Appendix B.

 

“Separate
Purchase Price” shall have the meaning set forth in Section 1.1, and is more particularly described in Part
I of Appendix B.

 

“Shareholder
Agreement” means the Unanimous Shareholder Agreement in respect of the General Partner, made as of the date of Closing,
among the General Partner and the Purchasers, substantially in the form attached hereto as Exhibit B.

 

“Subsidiary”
means, with respect to any Person, any entity of which securities or other ownership interests having ordinary voting power to
elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly
owned by such Person.

 

“Subsidiary
Transferor” shall have the meaning set forth in Part I of Appendix C.

 

“Survival
Period” shall have the meaning set forth in Part VI of Appendix B.

 

“Tax”
or “Taxes” means, collectively all federal, provincial, territorial, state and local or foreign income,
estimated, payroll, withholding, excise, sales, goods and services, harmonized, value-added, use, real and personal property,
corporation, use and occupancy, business and occupation, mercantile, transfer, capital stock and franchise or other taxes, levies,
duties, assessments, reassessments or other charges of any kind whatsoever (including interest, additions and penalties thereon)
, whether disputed or not, and for greater certainty includes Canada Pension Plan, Québec Pension Plan and employment insurance
premiums.

 

    App. A-1 - 9

     

    

“Tax
Returns” means any return, declaration, notice, form, report, claim for refund or information return or statement
relating to the determination, assessment, collection or payment of Taxes or to the administration, implementation or enforcement
of or compliance with any legal requirement pertaining to Taxes, including, for greater certainty, any schedule or attachment
thereto.

 

“Term
Conversion” has the meaning set forth in Term Loan Agreement.

 

“Term
Loan Agreement” shall have the meaning described in Part III of Appendix D.

 

“Third
Party Claim” shall have the meaning set forth in Section 6.5(a).

 

“Third
Party Claim Notice” shall have the meaning set forth in Section 6.5(a).

 

“TSA”
shall have the meaning set forth in Part I of Appendix D.

 

“Wind
Project” shall have the meaning set forth in the recitals to this Agreement, and is more particularly described
in Part II of Appendix C of the Agreement.

 

    App. A-1 - 10

     

    

APPENDIX
A-2: RULES OF CONSTRUCTION

 

		1.	The
                                         singular includes the plural and the plural includes the singular.

 

		2.	The
                                         word “or” is not exclusive.

 

		3.	A reference
                                         to a Governmental Rule includes any amendment or modification to such Governmental Rule,
                                         and all regulations, rulings and other Governmental Rules promulgated under such Governmental
                                         Rule.

 

		4.	A reference
                                         to a Person includes its successors and permitted assigns.

 

		5.	Accounting
                                         terms have the meanings assigned to them by GAAP, as applied by the accounting entity
                                         to which they refer.

 

		6.	The
                                         words “include,” “includes” and “including” are not
                                         limiting and shall be deemed to mean “include, without limitation”, “includes,
                                         without limitation” or “including, without limitation”.

 

		7.	A reference
                                         to an Article, Section, Exhibit, Schedule or Appendix is to the Article, Section, Exhibit,
                                         Schedule or Appendix of this Agreement unless otherwise indicated.

 

		8.	Any
                                         reference to “this Agreement”, “hereof,” “herein”
                                         and “hereunder” and words of similar import used in this Agreement shall
                                         refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

		9.	Any
                                         reference to another agreement or document shall be construed as a reference to that
                                         other agreement or document as the same may have been, or may from time to time be, varied,
                                         amended, supplemented, substituted, novated, assigned or otherwise transferred.

 

		10.	References
                                         to “days” shall mean calendar days, unless the term “Business Days”
                                         shall be used. References to a time of day shall mean such time in New York, New York,
                                         unless otherwise specified.

 

		11.	This
                                         Agreement is the result of negotiations among, and has been reviewed by, Seller, Purchaser,
                                         and their respective counsel. Accordingly, this Agreement shall be deemed to be the product
                                         of the parties thereto, and no ambiguity shall be construed in favor of or against either
                                         Seller or Purchaser.

 

		12.	The
                                         words “will” and “shall” shall be construed to have the same
                                         meaning and effect.

 

    App. A-2 - 11

     

    

Appendix
B: Transaction Terms and Conditions

 

	Meikle
    Transaction

	I.           
        Purchase Price

         

	“Aggregate
        Purchase Price”:

         
	$167,500,000

         

	“Separate
    Purchase Price”:	PEGI:
        $85,425,000

         

        

        PSP: $82,075,000

         

	Currency:	Canadian
        Dollar, and all references to Dollar or $ or CAD$ shall refer to such currency.

         

	“Purchase
        Price Adjustment”:

         
	The
        Purchase Price Adjustment at Closing shall be calculated to maintain the 25 year after tax IRR (assuming internal use
        of any tax benefits) of the Purchasers based on the updated Financial Model delivered pursuant to Section 1.5(a)(iii),
        which has been updated solely to reflect the following:

         

        (i)    change
        in the timing of Closing and the amount and date of the initial distribution to the Purchasers (considering any distributions
        received by the Seller prior to Closing, and with the Seller leaving a reasonable amount of working capital in the project to
        fund near-term payables);

         

        (ii)   changes
to reflect amendments to or new Material Contracts that have an economic impact on the Operating Period (including the terms of
any project debt and tax equity financing and changes to the length of the term of any power purchase agreement);

         

        (iii)   changes in the amounts and timing of material acquired assets and liabilities not associated with operating the business
in the ordinary course (including post-construction refunds, reserve amounts, outstanding debt balances, capital expenditures,
etc); and

         

        (iv)   manifest errors.

         

	Payment
        Mechanics and Payee Information:

         
	Bank
        Name: HSBC Bank Canada

        

        Bank
        Address: 885 West Georgia St.

        

        Vancouver,
        BC V6C 3Gl

        

        Canada

        

        Bank
        No.: 016

        

        Transit
        No. 10270

        

        Swift
        Code: HKBCCATT

        

        Account
        Name: Pattern Renewable Holdings Canada ULC

        

        Account
        Type: Business Checking Account

        

        Account
        Number : 270 -215956-001

        

        Currency:
Canadian Dollar 

 

    App. B - 1

     

    

 

	II.           
        Signing Date Deliverables

         

	Seller’s
        Signing Date Deliverables:

         
	Not
        applicable

         

	Purchaser’s
    Signing Date Deliverables:	Not
    applicable

	III.           
        Closing

         

	Closing
        Location:

         
	At
        the offices of PEGI:

        

        Pier
        1, Bay 3

        

        San
        Francisco, CA 94111

         

	Expected
    Closing Date:	August
        14, 2017

         

	Outside
        Closing Date:

         
	October
        13, 2017

         

	IV.           
        Closing Deliverables & Conditions Precedent to Closing

         

	Additional
    Closing Deliverables of Seller:	In
        addition to the closing deliverables set forth in Section 1.5(a) of the Agreement, Seller shall deliver, or cause
        to be delivered, to Purchasers the additional closing deliverables set forth in Appendix B-1.

         

	Additional
    Closing Deliverables of Purchasers: 	In
        addition to the closing deliverables set forth in Section 1.5(b) of the Agreement, Purchasers shall deliver, or
        cause to be delivered, to Seller the additional closing deliverables set forth in Appendix B-2.

         

	Additional
    Conditions Precedent to Each Party’s Obligations to Close:	In
        addition to the conditions precedent set forth in Section 5.1 of the Agreement, the obligation of Purchasers and
        Seller to Close is subject to the additional conditions precedent set forth in Appendix B-3.

         

	V.           
        Additional Termination Rights

         

	By
        Either Party:

         
	Not
    applicable
	By
        Purchasers:

         
	Not
    applicable
	By
        Seller:

         
	Not
    applicable

	
        VI.           
        Indemnification Provisions

         

	
        Additional Seller Indemnity Obligations:

         
	
        For a period from the Closing
Date until the date that is three years after the Closing Date, the Seller agrees to indemnify each Purchaser, and each Purchaser’s
successors and assigns, in respect of, and hold each of them harmless from and against, any Losses suffered by such Purchaser
in respect of any actual reimbursement costs paid to BC Hydro pursuant to Section 4.4 of the EPA that are in excess of the established
$6 million reserve account, up to a limit of $8,100,000. For greater certainty, the foregoing indemnity is not subject to the
limitations contained in 

         

 

    App. B - 2

     

    

 

	 	Sections 6.2(a) or 6.2(b)(i).

                                                                                 

	
        Additional Purchasers Indemnity Obligations:

         
	
        Not applicable

         

	
        Survival Period:

         
	
        Until the date that is 12 months after
        the Closing, except for (i) the representations and warranties in Sections 2.1, 2.2, 2.3(a), 2.6 and
        2.11 and any claim for any breach of any representation or warranty involving actual fraud or willful misrepresentation,
        which shall survive until the expiration of the relevant statute of limitations, (ii) the representation and warranty in Section
        2.18 with respect to the Indebtedness of the Project Company, the General Partner and their respective Subsidiaries, which
        shall survive until the date that is the later of: (A) 6 months after the Closing; and (B) 3 months following the completion of
        the Project Company's first annual audited financial statements, and (iii) the representations and warranties in Section 2.9,
        which shall survive until the date that is 60 days after the expiration of the period, if any, during which an assessment, reassessment
        or other form of recognized written demand assessing liability for Tax, interest or penalties under applicable Law in respect of
        any taxation year to which such representations and warranties relate could be issued to the Project Company or the General Partner,
        as applicable (the “Survival Period”).

         

	Limitation on Liability:	
        “Basket Amount”:

         
	
        1% of the Aggregate Purchase Price

         

	“Seller’s Maximum Liability”:	
        11% of the Aggregate Purchase Price

         

	
        “Purchaser’s Maximum Liability”:

         
	
        11% of the Aggregate Purchase Price

         

	
        Additional Refund or Reimbursement Obligations:

         
	
        By Purchasers or Purchaser Indemnified Party:

        

        1.     
        None

         

        By Seller or Seller Indemnified Party:

         

        1.     
        None

        

	
        VII.           
        Additional Transaction Terms

         

	Required Governmental Approvals:	
        1.     
        By Closing, the Competition Act Approval shall have been obtained.

         

	Persons with Knowledge:	
        Seller’s Persons with Knowledge: Michael Thompson, Amy
        Smolen, John Bodt, Daniel Elkort and Andrew Collingwood

         

        PEGI’s Persons with Knowledge: Esben Pederson, Michael
        Lyon and Dyann Blaine

         

        PSP’s Persons with Knowledge: Guthrie Stewart and Patrick
        Samson

        

 

 

 

    App. B - 3

     

    

 

	
        Additional Assignment Rights:

         
	
        Assignment Rights of Seller: None

         

        Assignment Rights of Purchaser: None

         

	Governing Law:	
        New York

         

	Notice Information:	
        To Seller:

         
	
        c/o Pattern Energy Group LP

        

        Pier 1, Bay 3

        

        San Francisco, CA 94111

        

        Attention: General Counsel

        

        Phone: 415-283-4000

        

        Fax: 415-362-7900

         

	To PEGI:	
        c/o Pattern Energy Group Inc.

        

        Pier 1, Bay 3

        

        San Francisco, CA 94111

        

        Attention: General Counsel

        

        Phone: 415-283-4000

        

        Fax: 415-362-7900

        

	
        To PSP:

         
	
        c/o Public Sector Pension Investment Board

        1250 René-Lévesque Blvd. West.

        Suite 1400

        Montréal, Québec

        Canada H3B 5E9

         

        Attention:Managing Director,

        Infrastructure Investments

        Facsimile:(514) 937-0403

        E-mail:          vertuousenergy@investpsp.ca

        and legalnotices@investpsp.ca

         

        with a copy to:

         

        Davies Ward Phillips & Vineberg LLP

        1501, avenue McGill College

        26th Floor

        Montreal, Québec

        Canada H3A 3N9

         

        Attention:        Franziska Ruf

        Facsimile:        (514) 841-6499

        E-mail:             fruf@dwpv.com

         

 

 

    App. B - 4

     

    

Appendix
B-1:

 

		1.	To
                                         the extent available, unaudited consolidated financial statements of income and cash
                                         flows and related balance sheet of the Project Company for the most recent fiscal quarter
                                         of the Project Company ending prior to the Closing Date (but in any event after the date
                                         of this Agreement), in each case prepared in accordance with GAAP.

 

    App. B -1 - 1

     

    

Appendix
B-2:

 

Additional
Closing Deliverables of purchasers

 

In the case
of PEGI:

 

		1.	A
                                         counterpart signature page to the Shareholder Agreement, executed by the General Partner
                                         and PCFC.

 

		2.	A
                                         counterpart signature page to the Amended and Restated Limited Partnership Agreement,
                                         executed by the General Partner and PCFC.

 

In the case
of PSP:

 

		1.	A
                                         counterpart signature page to the Shareholder Agreement, executed by PSP.

 

		2.	A
                                         counterpart signature page to the Amended and Restated Limited Partnership Agreement,
                                         executed by PSP.

 

    App. B - 2 - 2

     

    

Appendix
B-3:

 

Additional
Conditions Precedent to 

Each
Party’s Obligations to Close

 

 

		1.	Receipt of all necessary Governmental
                                         Approvals set forth on Part VII of Appendix B.

 

    App. B - 3 - 3

     

    

 Appendix
C: Acquired Interests; Ownership Structure; 

 

and
Wind Project Information

 

	Meikle
        Transaction

         

	I.           
        Acquired Interests & Ownership Structure

         

	Project
        Company:

         
	Meikle
    Wind Energy Limited Partnership
	Purchasers:	PSP
        and Pattern Canada Finance Company ULC (“PCFC”)

         

	Acquired
        Interests:

         
	PEGI
        (indirectly acquired by PCFC):

         

        50.99%
        limited partner interest in the Project Company

         

        70%
        of the issued and outstanding shares of the General Partner (which owns a 0.02% general partner interest in the Project
        Company)

         

	PSP:

         

        48.99%
        limited partner interest in the Project Company

         

        30%
        of the issued and outstanding shares of the General Partner (which owns a 0.02% general partner interest in the Project
        Company)

         

	“Subsidiary
    Transferor(s)”:	PRHC
        Holdings LP

         

	Direct
    or Indirect Co-Owners of Project Company:	Immediately prior to
        the Closing:

         

        1.     
        PRHC Holdings LP will hold (a) a 99.98% limited partner interest in Pattern Meikle LP Holdings LP and (b) 100%
        of the issued and outstanding shares in the capital of Pattern Meikle GP Holdings Inc.;

         

        2.     
        Pattern Meikle GP Holdings Inc. will hold (a) 100% of the issued and outstanding shares in the capital of the General
        Partner and (b) 0.02% general partner interest in Pattern Meikle LP Holdings LP;

         

        3.     
        The General Partner will hold a 0.02% general partnership interest in the Project Company; and

         

        4.     
        Pattern Meikle LP Holdings LP will hold a 99.98% limited partnership interest in the Project Company.

         

        At Closing:

         

        1.     
        Pattern Meikle LP Holdings LP is dissolved, in accordance with the terms of its limited partnership agreement,
        and its assets will be transferred as follows:

         

        

        

 

 

    App. C - 1

     

    

 

	 	(a)    0.02%
of a 99.98% limited partnership interest in the Project Company (the “GP Interest”) will be transferred
to Pattern Meikle GP Holdings Inc.; and

 

(b)   99.98% of a
99.98% limited partnership interest in the Project Company will be transferred to PRHC Holdings LP.

 

2.     
Pattern Meikle GP Holdings Inc. will then transfer the GP Interest to PRHC Holdings LP, such that PRHC Holdings LP will own a 99.98%
limited partnership interest in the Project Company.

 

3.     
Pattern Meikle GP Holdings Inc. will be dissolved and its assets will be distributed to its sole shareholder PRHC Holdings LP,
such that PRHC Holdings LP will own 100% of the shares in the capital of the General Partner.

 

4.     
PRHC Holdings LP will then:

 

(a)    sell
to PEGI (indirectly through PCFC) a 50.99% limited partnership interest in the Project Company and 70% of the shares in the capital
of the General Partner; and

 

(b)   sell to PSP
a 48.99% limited partnership interest in the Project Company and 30% of the shares in the capital of the General Partner.

 

Consequently, immediately following the Closing:

 

1.     
PEGI will indirectly hold a 50.99% limited partnership interest in the Project Company;

 

2.     
PEGI will hold 70% of the shares in the capital of the General Partner;

 

3.     
PSP will indirectly hold a 48.99% limited partnership interest in the Project Company; and

 

4.      PSP will hold 30% of the shares
in the capital of the General Partner.

 

	II.           
        Wind Project Information

         

	Wind
        Project:

         
	Expected
        nameplate capacity: 178.8 MW

         

        Location:
        Peace River Regional District of the Province of British Columbia

         

        Turbine
        type and manufacturer: General Electric Canada

         

        Number
        of turbines: 61

         

	Commercial
        Operation Date (or Expected 

         
	January
    31, 2017

 

 

    App. C - 2

     

    

 

	Commercial Operation Date) of Wind Project:

                                                                                
	 
	Permits
        & Governmental Approvals:

         
	1.    
        BC Hydro Interconnection System Impact Study dated November 2015.

         

        2.    
        BC Hydro Interconnection Facilities Study and Project Plan dated March 25, 2015, as amended by an amendment dated
        March 3, 2016.

         

        3.            EAO Environmental Assessment Certificate #E14-01, issued by the Minister of Environment and Minister of Energy
        and Mines and Minister response for Core review, dated June 24, 2014, as amended by Amendment #1 to Certificate E14-01,
        dated January 15, 2015.

         

        4.            Land Use Proposal Approval from NAV Canada dated June 23, 2015.

         

        5.    Transport Canada Aeronautical Assessment Form for Obstruction Marking and Lighting from Transport Canada, dated February
24, 2015.

         

        6.    
        Occupant License to Cut L49747, issued by the British Columbia Ministry of Forests, Lands and National Resource
        Operations, dated October 8, 2013, as amended by Amendment Number 1, dated October 14, 2014.

         

        7.         Authorization for Vegetation Clearing under Section 52 of the Forest Act, British Columbia Ministry of Forests,
        Land and National Resource Operations and Ministry of Transportation and Infrastructure, dated March 27, 2015.

         

        8.           License for the use of explosives under Section 7 of the Explosives Act, Government of Canada, Department of Natural
        Resources.

         

        9.           Section 9 Notifications re Culverts (#145979) and Installation of Underground Collector Line Cables (#156862-167043)
        under the Water Act, submitted to the British Columbia Ministry of Forests, Lands and National Resource Operations and
        dated August 27, 2014 and February 17, 2015.

         

        10. 
 Inspection Permit for Archeological Investigation under the Heritage Conservation Act, issued by the British Columbia
Ministry of Forests, Lands and National Resource Operations (as required by applicable Governmental Authority).

        

 

    App. C - 3

     

    

 

	Real
        Property Interests:

         
	1.           Multi-tenure agreement referenced as File No. 8015444 (Disposition No. 893356) dated September 30, 2014, and as
        amended on May 19, 2015 and June 19, 2015, between the Project Company and the Crown (the “Multi-Tenure Agreement”)
        

         

        2.            License of occupation (Licence No. 815640) dated June 1, 2015 between the Project Company and the Crown.

         

        3.            Crossing agreement (File X-208.5) dated April 14, 2015 between the Project Company and CQ Energy Canada Resources
        Partnership, by its manager, Direct Energy Marketing Limited, operating as Centrica Energy (“Centrica Energy”).

         

        4.            Crossing agreement (File X-208.6) dated April 14, 2015 between the Project Company and Centrica Energy.

         

        5.     Reciprocal master road use agreement dated April 14, 2015 between the Project Company and Centrica Energy.

         

        6.     Mutual existence agreement dated October 15, 2014 between the Project Company and Doug Connors.

         

	Legal
    Description as set out in the Multi-Tenure Agreement:	That
    parcel or tract of unsurveyed Crown land in the vicinity of Meikle Creek (within Block A, 93-P-05 and Block D, 93-P-06), Peace
    River District containing 1,382.4 hectares more or less and shown on the sketch attached to the Multi-Tenure Agreement.

 

    App. C - 4

     

    

Appendix
D: Documents & Key Counterparties

 

	
        I.           
        Material Project Agreements

         

	Certain documents referenced in the Term Loan Agreement:	
        1.      
        A balance of plant agreement dated as of June 29, 2015 between Borea Construction ULC and the Project Company.

         

        2.      A
        guarantee agreement dated as of June 29, 2015 by Blattner Holding Company and Pomerleau, Inc., in favour of the Project Company.

         

        3.     
        A contract for the sale of power generation equipment and related services agreement dated as of June 29, 2015 between the General
        Electric Company and the Project Company (the “TSA”).

         

        4.      
        A full service agreement dated as of June 29, 2015 between the General Electric Company and the Project Company.

         

        5.      
        A guarantee provided by the General Electric Company.

         

        6.      
        A letter of credit issued to the Project Company and the Administrative Agent (as defined in the Term Loan Agreement) as co-beneficiaries,
        in an amount equal to at least 10% of the amounts invoiced and paid to General Electric Canada by the Project Company pursuant
        to the TSA and issued to secure the Project Company’s Builders’ Lien Act (British Columbia) holdback requirements

         

        7.      
        The Multi-Tenure Agreement (as defined in Part II of Appendix C).

         

        8.       A
        management, operation and maintenance services agreement dated as of June 29, 2015 between the Project Company and Pattern Operators
        Canada ULC with respect to the Wind Project.

         

        9.       A
        project administration agreement between the Project Company and Pattern Operators Canada ULC dated as of June 29, 2015.

         

        10.    
        The Project Agreement (as defined in Part IV below)

         

        11.    An
        electricity purchase agreement dated on April 22, 2010 between BC Hydro and the Project Company, as transferred from Finavera Renewables
        Inc. to the Project Company pursuant to the Asset Purchase Agreement (as defined in the Term Loan Agreement), as amended on March
        14, 2014 between BC Hydro and the Project Company (the “EPA”).

         

        12.    
        A mutual benefit agreement between the Project Company and Saulteau First Nation dated September 18, 2014.

         

        13.    
        A community benefits agreement between the Project Company and 

        

 

 

    App. D 

     

    

 

	 	   McLeod Lake Indian Band dated January 16, 2014.

                                                                                             

                                                                                            14.    A benefits agreement between Finavera Wind Energy Inc., the Project Company and Halfway River First Nation dated October 14, 2011,
as amended by an amending agreement between the Project Company and Halfway River First Nation dated April 10, 2015.

 

15.    A
benefits agreement between Finavera Wind Energy Inc., the Project Company and West Moberly First Nations dated December 7, 2012,
as amended by an amending agreement between the Project Company and West Moberly First Nations dated June 25, 2015.

 

16.    
A memorandum of understanding between Finavera Wind Energy Inc., the Project Company and Doig River First Nation, dated January
14, 2012, as amended by an amending agreement between the Project Company and Doig River First Nation dated May 11, 2015.

 

17.    
A “Standard Generator Interconnection Agreement” entered into between the Project Company, as transferred from Finavera
Renewables Inc. to the Project Company pursuant to the Asset Purchase Agreement (as defined in the Term Loan Agreement) and BC
Hydro on June 28, 2011, as amended on April 27, 2015 and July 1, 2016 (the “Interconnection Agreement”).

 

18.    A purchase agreement for the main
power transformers dated as of April 20, 2016 between the Project Company and Hyosung Corporation.

	
        Certain other documents:

         
	
        Nil.

         

	
        II.           
        Reports, Other .Deliverables and Consultants

         

	
        Environmental Consultant:

         
	TerraWest Environmental Inc.
	
        Environmental Reports:

         
	Phase 1 Environmental Site Assessment dated March 31, 2015
	
        Independent Engineer:

         
	GL Garrad Hassan Canada, Inc.
	
        Independent Engineer’s Report:

         
	Independent Engineer Closing Report dated June 26, 2015, as supplemented by Construction Supplement dated April 21, 2017
	
        Title Company:

         
	Not applicable
	
        Title Policy:

         
	Not applicable
	
        Wind Consultant:

         
	GL Garrad Hassan Canada, Inc.
	
        Wind Energy and Resource Assessment Report:

        
	Energy Production Assessment of the Proposed Meikle Wind Farm dated June 5, 2015

 

    App. D 

     

    

 

	Insurance Consultant:	Moore-McNeil, LLC
	
        Insurance Consultant’s Report:

         
	Insurance Consultant’s Report dated June 26, 2015
	Insurance Policies:	
        General Liability CAD (Part of Master CAD Program), Policy Number
        CGL324204

         

        Umbrella Liability CAD (Part of Master CAD Program), Policy
        Number WXBC324811

         

        Property & Business Interruption for Canada Ops Wind &
        MET Tower, Policy Number PER 16 WPO0067

         

        Pollution Liability Policy for Canada, Policy Number 0310-1573

         

        An insurers reservation of right was submitted in the ordinary
        course in connection with a construction period contractor claim (Boreo Construction, date of loss 6/26/2-16, total estimated loss
        $2,910,259)

         

	
        Local Content Consultant:

         
	Not Applicable
	
        Local Content Report:

         
	Not Applicable
	
        Transmission Consultant:

         
	Not Applicable
	
        Transmission Consultant’s Report:

         
	Not Applicable
	Cost Segregation Consultant:	Not Applicable
	
        Cost Segregation Report:

         
	Not Applicable
	
        Accountant:

         
	Not Applicable

	III.           
    Financing Arrangements
	Term
        Loan Agreement:

         
	Credit
        Agreement dated June 29, 2015 between Meikle Wind Energy Limited Partnership, as borrower, Meikle Wind Energy Corp., as
        guarantor, Bank of Montreal, as administrative agent, Bank of Montreal, as collateral agent and account bank, and Bank
        of Montreal, Crédit Agricole Corporate and Investment Bank, KeyBank National Association, National Bank of Canada,
        Royal Bank of Canada, Société Générale, Sumitomo Mitsui Banking Corporation of Canada, as
        lenders (as amended in accordance with this Agreement, the “Term Loan Agreement”)

         

	Other
        Financing Arrangements:

         
	1.     
        The documents listed in clauses (a) through (n) of the definition of “Loan Documents” in the Term Loan
        Agreement, in each case without any amendments thereto.

         

        2.     
        The documents listed in clauses (a) through (g) of Section 10.01(1) of the Term Loan Agreement.

         

 

 

    App. D 

     

    

 

	 	3.     1992 ISDA Master Agreement (Multicurrency–Cross Border) and related Schedule between Bank of Montreal and the General Partner,
in its capacity as general partner of the Borrower, dated as of June 29, 2015.

 

4.    1992 ISDA Master Agreement (Multicurrency–Cross Border) and related Schedule between Crédit Agricole Corporate
and Investment Bank and the General Partner, in its capacity as general partner of the Borrower, dated as of June 29,
2015.

 

5.    
1992 ISDA Master Agreement (Multicurrency–Cross Border) and related Schedule between KeyBank National Association and
the General Partner, in its capacity as general partner of the Borrower, dated as of June 29, 2015.

 

6.     1992 ISDA Master Agreement (Multicurrency–Cross Border) and related Schedule between National Bank of Canada and the General
Partner, in its capacity as general partner of the Borrower, dated as of June 29, 2015.

 

7.     1992 ISDA Master Agreement (Multicurrency–Cross Border) and related Schedule between Royal Bank of Canada and the General
Partner, in its capacity as general partner of the Borrower, dated as of June 29, 2015.

 

8.     1992 ISDA Master Agreement (Multicurrency–Cross Border) and related Schedule between Société Générale
and the General Partner, in its capacity as general partner of the Borrower, dated as of June 29, 2015.

 

9.     1992 ISDA Master Agreement
(Multicurrency–Cross Border) and related Schedule between Sumitomo Mitsui Banking Corporation, New York Branch and the General
Partner, in its capacity as general partner of the Borrower, dated as of June 29, 2015.

 

	Indirect
        Financing Arrangements:

         
	Not
        applicable.

         

	Amendments
        to any document in this Part III of Appendix D

         
	An
    Amendment to the Term Loan Agreement is in the process of being drafted.

	IV.           
        Equity and Co-Ownership Arrangements & Key Counterparties

         

	Equity
        Capital Contribution Agreement (“ECCA”):

         
	Not
    Applicable
	Tax
        Equity Investors:

         
	Not
    Applicable

 

 

    App. D 

     

    

 

	Project
        Agreement:

         
	Amended
        and Restated Limited Partnership Agreement of Meikle Wind Energy Limited Partnership dated April 15, 2014 (as amended
        in accordance with its terms, and together with any counterparts and acknowledgements related thereto, the “Project
        Agreement”)

         

	V.           
        First Nations Matters

         

	Agreements
    with First Nations:	1.            A mutual benefit agreement between the Project Company and Saulteau First Nation dated September 18, 2014.

         

        2.            A community benefits agreement between the Project Company and McLeod Lake Indian Band dated January 16, 2014.

         

        3.       A benefits agreement between Finavera Wind Energy Inc., the Project Company and Halfway River First Nation dated October
14, 2011, as amended by an amending agreement between the Project Company and Halfway River First Nation dated April 10, 2015.

         

        4.      A
        benefits agreement between Finavera Wind Energy Inc., the Project Company and West Moberly First Nations dated December 7,
        2012, as amended by an amending agreement between the Project Company and West Moberly First Nations dated June 25,
        2015.

         

        5.              A memorandum of understanding between Finavera Wind Energy Inc., the Project Company and Doig River First Nation,
        dated January 14, 2012, as amended by an amending agreement between the Project Company and Doig River First Nation dated
        May 11, 2015. 

         

	First
        Nations with which the Project Company or its Subsidiaries has had active consultation in developing the Wind Project:

         
	Salteau
        First Nation

        

        McLeod
        Lake Indian Band

        

        Halfway
        River First Nation

        West Morbley First Nations

        Doig River First Nation

         

	First
    Nations with which the Project Company or its Subsidiaries has had limited consultation in developing the Wind Project:	The
        Project Company consulted in a limited manner with the Kelly Lake Cree Nation, to a similar extent to which it has consulted
        with other third party stakeholders. The Project Company was had no duty to consult with the Kelly Lake Cree Nation by
        any Governmental Authority. There are no agreements between the Kelly Lake Cree Nation and Project Company and Project
        Company has not agreed to provide any future benefits to the Kelly Lake Cree Nation.

         

    App. D 

     

    

Appendix
E: 

 

Affiliate
Transactions

 

None.

 

 

 

 

 

    App. E 

     

    

Schedule
2.5

 

Seller
Consents and Approvals

 

		1.	Consent
                                         from BC Hydro under the EPA (as defined in Part I of Appendix D).

 

		2.	Notice
                                         to the Administrative Agent (as defined in the Term Loan Agreement) regarding Permitted
                                         Transfer (as defined in the Term Loan Agreement) of the Term Loan Agreement.

 

    Schedule 2.5

     

    

Schedule
3.5

 

Purchaser
Consents and Approvals

 

		1.	Competition
                                         Act Approval.

 

    Schedule 3.5

     

    

Schedule
4.2(f)

 

Tax
Allocation

 

 

	Acquired Interests	 	Allocation %	Allocation $
	99.98% Limited Partnership Interest in Meikle Wind Energy Limited Partnership	99.98%	$167,466,500
	 	 	 	 
	0.02% General Partnership Interest in Meikle Wind Energy Limited Partnership	0.02%	$33,500

 

 

 

    Schedule 6.4(b)

     

    

Schedule 
6.4(b)

 

Control
of Defense of Third Party Claims

 

Not
applicable.

 

    Schedule 6.4(b)

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