Document:

Exhibit 10.3

 

Execution Version

 

 

 

 

 

 

SECOND AMENDED AND RESTATED

 

NONCOMPETITION AGREEMENT

 

BY AND AMONG

 

PATTERN ENERGY GROUP LP,

 

PATTERN ENERGY GROUP INC., AND

 

PATTERN ENERGY GROUP 2 LP

 

Dated as of June 16, 2017

 

 

 

 

    	 

    	 

    

TABLE
OF CONTENTS

 

Article
I

DEFINITIONS

 

	Section 1.1	Definitions	1

 

Article
II

 

Exclusivity

 

	Section 2.1	Exclusivity	3

 

Article
III

MISCELLANEOUS

 

	Section 3.1	Choice of Law; Submission to Jurisdiction; Waiver of Jury Trial	5
	Section 3.2	Enforcement	5
	Section 3.3	Notice	5
	Section 3.4	Entire Agreement	6
	Section 3.5	Termination	6
	Section 3.6	Waiver; Effect of Waiver or Consent	6
	Section 3.7	Amendment or Modification	6
	Section 3.8	Assignment	6
	Section 3.9	Counterparts	7
	Section 3.10	Severability	7
	Section 3.11	Rules of Construction	7
	Section 3.12	Further Assurances	7
	Section 3.13	Laws and Regulations	7
	Section 3.14	No Third Party Beneficiaries	7

 

    	i

    	 

    

SECOND
AMENDED AND RESTATED NONCOMPETITION AGREEMENT

 

THIS
SECOND AMENDED AND RESTATED NONCOMPETITION AGREEMENT is entered into on, and effective as of June 16, 2017, by and between Pattern
Energy Group LP, a Delaware limited partnership (“PEG LP”), Pattern Energy Group Inc., a Delaware corporation
(“PEG Inc.”), and Pattern Energy Group 2 LP, a Delaware limited partnership (“PEG 2”).

 

R E
C I T A L S:

 

A.       PEG
LP and PEG Inc. entered into a Non-Competition Agreement, dated as of October 2, 2013 (the “Initial Agreement”)
to evidence their understanding with respect to certain interests in Projects.

 

B.       The
Parties entered into the Amended and Restated Non-Competition Agreement, dated December 8, 2016 (the “A&R Agreement”),
amending and restating the Initial Agreement to, among other things, add PEG 2 as a party.

 

C.       The
Parties desire to amend and restate the A&R Agreement to further provide for their rights and obligations as described herein.

 

In
consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby amend and restate the A&R
Agreement in its entirety and further agree as follows:

 

Article
I

DEFINITIONS

 

Section
1.1           
Definitions. As used in this Agreement, the following terms
shall have the respective meanings set forth below:

 

 

“A&R
Agreement” is defined in the introduction to this Agreement.

 

“Agreement”
means this Second Amended and Restated NonCompetition Agreement, as it may be amended, modified, or supplemented from time to
time in accordance with Section 3.7 hereof.

 

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

 

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

 

    	 

    	 

    

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

 

“Equity
Interests” means all shares, capital stock, partnership or limited liability company interests, units, participations,
distribution rights, joint venture interest or similar equity interests issued by any Person, however designated.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Governmental
Authority” means:

 

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

 

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

 

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

 

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

 

“Order”
means any order, directive, judgment, decree, injunction, decision, ruling, award or writ of any Governmental Authority.

 

“Parties”
means the parties to this Agreement and their successors (whether through merger or otherwise) and permitted assigns.

 

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

 

“PEG
2 Entities” means PEG 2 and any Person Controlled by PEG 2, other than the PEG Inc. Entities.

 

“PEG
2 LPA” means that certain Second Amended and Restated Agreement of Limited Partnership of PEG 2, dated as of the date
hereof.

 

“PEG
2 Purchase Rights Agreement” means that certain Amended and Restated Purchase Rights Agreement, entered into on, and
effective as of the date hereof, among PEG 2, PEG Inc., and, solely with respect to Article III thereof, Pattern Energy Group
Holdings 2 LP, a Delaware limited partnership, and Pattern Energy Group Holdings 2 GP LLC, a Delaware limited liability company,
as the same may be amended from time to time.

 

    	 

    	 

    

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

 

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

 

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

 

“PEG
LP Entities” means PEG LP and any Person Controlled by PEG LP, other than the PEG Inc. Entities.

 

“PEG
LP Purchase Rights Agreement” means that certain Amended and Restated Purchase Rights Agreement, entered into on, and
effective as of the date hereof, among PEG LP, PEG Inc., and, solely with respect to Article IV thereof, Pattern Energy Group
Holdings LP, a Delaware limited partnership, and Pattern Energy GP LLC, a Delaware limited liability company, as the same may
be amended from time to time.

 

“PEG
LP Retained Assets” means the development assets owned by PEG LP as set forth on Schedule 1 attached hereto.

 

“Person”
means an individual, corporation, partnership, joint venture, trust, limited liability company, unlimited liability company, unincorporated
organization or any other entity.

 

“Project”
means any power generation, storage or transmission development project, prior to completion of construction.

 

“Relevant
Geographies” means the United States, Canada, and Mexico.

 

Article
II 

 

Exclusivity

 

Section
2.1            Exclusivity.

 

(a)               
Each of PEG Inc. and PEG LP hereby grant PEG 2 the exclusive right to develop, and each of PEG Inc. and PEG LP hereby agree to
refrain from developing or otherwise entering into any agreement or arrangement with a Person other than PEG 2 to develop, all
Projects located in the Relevant Geographies except: (i) any development activities intended to expand, improve, enhance or protect
an existing power generation, transmission or storage facility that is directly or indirectly managed or majority owned by PEG
Inc. as of the applicable date of determination (a list of such facilities as of the date hereof is set forth on Schedule 2
attached hereto); (ii) any Project associated with a PEG LP Retained Asset; (iii) any Project acquired in whole or in part
by PEG Inc. or a Permitted Assignee (as defined in the PEG 2 Purchase Rights Agreement) pursuant to the PEG 2 Purchase Rights
Agreement; (iv) any Project acquired in whole or in part by PEG Inc. or a Permitted Assignee (as defined in the PEG LP Purchase
Rights Agreement) pursuant to the PEG LP Purchase Rights Agreement, or (v) any Project that has issued or achieved, or the parties
agree (acting reasonably) is likely to issue or achieve within thirty (30) days of closing an acquisition of such Project, readiness
for construction financing or issuance of full notice to proceed; provided, however, that nothing in this Section 2.1 shall
restrict PEG Inc. from acquiring (whether through a stock or asset purchase, merger,

 

    	 

    	 

    

combination,
amalgamation or other business combination transaction) any company or business that is principally engaged in the business of
owning and operating renewable energy facilities (“Operating Business”); provided, further, that a portfolio of Projects
for sale is not an Operating Business and, if it contains a mix of development, construction or operating Projects, PEG 2 and
PEG Inc. will reasonably cooperate to split the assets so that PEG 2 may acquire (whether through a stock or asset purchase, merger,
combination or other business combination transaction) the development Projects and PEG Inc. may acquire (whether through a stock
or asset purchase, merger, combination or other business combination transaction) the construction and operating Projects contained
in such portfolios, on mutually acceptable terms.

 

(b)              
Until such time as a controlling interest in Green Power Investments is no longer held by PEG LP (whether by sale of equity
or a sale of all or substantially all assets of Green Power Investments), each of PEG Inc. and PEG 2 hereby grant PEG LP the exclusive
right to develop, and each of PEG Inc. and PEG 2 hereby agree to refrain
from developing or otherwise entering into any agreement or arrangement with a Person other than PEG LP to develop, all
Projects in Japan except: (i) any development activities intended to expand, improve, enhance or protect an existing power
generation, transmission or storage facility that is directly or indirectly managed or majority owned by PEG Inc. as of the applicable
date of determination, (ii) any Project acquired in whole or in part by PEG Inc. or a Permitted Assignee (as defined in the PEG
2 Purchase Rights Agreement) pursuant to the PEG 2 Purchase Rights Agreement, (iii) any Project acquired in whole or in part by
PEG Inc. or a Permitted Assignee (as defined in the PEG LP Purchase Rights Agreement pursuant to the PEG LP Purchase Rights Agreement,
or (iv) any Project that has issued or achieved, or the parties agree (acting reasonably) is likely to issue or achieve within
thirty (30) days of closing an acquisition of such Project, readiness for construction financing or issuance of full notice to
proceed; provided, however, that nothing in this Section 2.1(b) shall restrict PEG Inc. from acquiring (whether through
a stock or asset purchase, merger, combination or other business combination transaction) any company or business that is principally
engaged in the business of owning and operating renewable energy facilities (“Operating Business”); provided, further,
that a portfolio of Projects for sale is not an Operating Business and, if it contains a mix of development, construction or operating
Projects, PEG 2 and PEG Inc. will reasonably cooperate to split the assets so that PEG 2 may acquire (whether through a stock
or asset purchase, merger, combination or other business combination transaction) the development Projects and PEG Inc. may acquire
(whether through a stock or asset purchase, merger, combination or other business combination transaction) the construction and
operating Projects contained in such portfolios on mutually acceptable terms. If PEG 2 or PEG Inc. acquires (whether through a
stock or asset purchase, merger, combination or other business combination transaction) a direct or indirect controlling interest
in Green Power Investments (the “Japanese Development Acquisition”), then effective upon such Japanese
Development Acquisition, and without further action, each of PEG LP and either of PEG Inc. or PEG 2 (to the extent it is not the
acquirer of such Japanese Development Acquisition) hereby grant to the acquirer of such Japanese Development Acquisition the exclusive
right to develop all Projects in Japan subject to the exceptions set forth in clauses (i) through (iv) above.

 

    	 

    	 

    

Article
III

MISCELLANEOUS

 

Section
3.1           
Choice of Law; Submission to Jurisdiction; Waiver of Jury Trial. This Agreement shall
be governed by and construed and interpreted in accordance with the Laws of the State of New York, excluding any conflict-oflaws
rule or principle that might refer the governance or the construction of this Agreement to the law of another jurisdiction irrespective
of the choice of laws principles. Subject to Section 3.2, each Party hereby irrevocably submits to the exclusive jurisdiction
of any state or federal court sitting in New York, New York in connection with any claim, suit, action or proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby or any dealings between the Parties relating to the subject
matter of this Agreement and the relationship that is being established. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH
OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM, SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY DEALINGS BETWEEN THEM RELATING
TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED.

 

 

Section
3.2           
Enforcement. Each Party agrees and acknowledges that the other Parties do not have
an adequate remedy at law for the breach by any such Party of its covenants and agreements set forth in this Agreement, and that
any breach by any such Party of its covenants and agreements set forth in this Agreement would result in irreparable injury to
such other Party. Each Party shall be entitled to enforce its rights under this Agreement specifically, to recover damages by
reason of any breach of any provision of this Agreement (including costs of enforcement) and to exercise any and all other rights
existing in its favor. The Parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach
of the provisions of this Agreement and that each Party may, in its sole discretion, apply to any court of law or equity of competent
jurisdiction for, and shall be entitled to specific performance or injunctive relief (without posting a bond or other security)
in order to enforce or prevent any violation or threatened violation of the provisions of this Agreement.

 

 

Section
3.3           
Notice. All notices, requests or consents provided for or permitted to be given pursuant
to this Agreement must be in writing and must be given by depositing the same in the mail, addressed to the Person to be notified,
postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by privatecourier,
prepaid, or by telecopier to such party. Notice given by personal delivery or mail shall be effective upon actual receipt. Couriered
notices shall be deemed delivered on the date the courier represents that delivery will occur. Notice given by telecopier shall
be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s
next Business Day after receipt if not received during the recipient’s normal business hours. All notices to be sent to
a Party pursuant to this Agreement shall be sent to or made at the address set forth below such Party’s signature to this
Agreement, or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section
3.3.

 

 

    	 

    	 

    

Section
3.4           
Entire Agreement. This Agreement, the PEG
LP Purchase Rights Agreement and the PEG 2 Purchase Rights Agreement constitute the entire agreement of the Parties relating
to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters
contained herein.

 

 

Section
3.5           
Termination. Upon the
termination of all of PEG Inc.’s collective purchase rights set forth in Articles III and IV of the PEG LP Purchase Rights
Agreement in accordance with the terms of the PEG LP Purchase Rights Agreement, this Agreement shall automatically and immediately
terminate as between PEG Inc. and PEG LP, but will remain in full force and effect as between PEG Inc. and PEG 2 and as between
PEG LP and PEG 2.

 

(b)              
Upon the termination of all of PEG Inc.’s collective purchase rights set forth in Articles
II and III of the PEG 2 Purchase Rights Agreement in accordance with the terms of the PEG 2 Purchase Rights Agreement, this Agreement
shall automatically and immediately terminate as between PEG Inc. and PEG 2, but will remain in full force and effect as between
PEG Inc. and PEG LP and as between PEG 2 and PEG LP.

 

(c)               
Notwithstanding anything to the contrary, upon the earlier to occur of (i) the wind-up of
PEG 2 pursuant to the terms of the PEG 2 LPA and (ii) PEG 2’s rejection
of three (3) or more First Rights Project Offers (as defined in the PEG 2 Purchase Rights Agreement) in accordance with the terms
of the PEG 2 Purchase Rights Agreement, representing a cumulative net capacity of at least 600 MW, in the aggregate, PEG Inc.
shall have the right to terminate Section 2.1.

 

Section
3.6           
Waiver; Effect of Waiver or Consent. Any Party hereto may (a) extend the time
for the performance of any obligation or other act of any other Party hereto or (b) waive compliance with any agreement or condition
of any other Party contained herein. Except as otherwise specifically provided herein, any such extension or waiver shall be valid
only if set forth in a written instrument duly executed by the party or parties to be bound thereby. No waiver or consent, express
or implied, by any Party of or to any breach or default by any Person in the performance by such Person of its obligations hereunder
shall be deemed or construed to be a waiver or consent of or to any other breach or default in the performance by such Person
of the same or any other obligations of such Person hereunder. Failure on the part of a Party to complain of any act of any Person
or to declare any Person in default, irrespective of how long such failure continues, shall not constitute a waiver by such Party
of its rights hereunder until the applicable statute of limitations period has run.

 

 

Section
3.7           
Amendment or Modification. This Agreement may be amended or modified from time
to time only by the written agreement of all the Parties hereto.

 

 

Section
3.8           
Assignment. No Party shall have the right to assign its rights or obligations
under this Agreement without the consent of the other Parties hereto; provided, that this Agreement shall be binding on the
Parties and their respective successors (whether through merger or otherwise) and permitted assigns.

 

 

Section
3.9            Counterparts.
This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the
same document. All

 

 

    	 

    	 

    

counterparts
shall be construed together and shall constitute one and the same instrument. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile or electronic transmission shall be as effective as delivery of a manually executed counterpart
of this Agreement.

 

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

 

 

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

 

 

Section
3.12        Further
Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto
agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary
or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such
transactions.

 

 

Section
3.13        Laws
and Regulations. Notwithstanding any provision of this Agreement to the contrary, no party to this Agreement shall be required
to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such party to be in violation
of any Applicable Law.

 

 

Section
3.14        No
Third Party Beneficiaries. The provisions of this Agreement are enforceable solely by the Parties to
this Agreement, and no other Person, including any limited partner, member or equity holder of PEG LP, PEG 2 or PEG Inc., shall
have the right, separate and apart from PEG LP, PEG 2 and PEG Inc., as applicable, to enforce any provision of this Agreement
or to compel any Party to this Agreement to comply with the terms of this Agreement.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

    	 

    

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

 

 

	 	 	 	PATTERN ENERGY GROUP LP	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	/s/
Daniel M. Elkort    	 
	 	 	 	 	Its:	Daniel M. Elkort	 
	 	 	 	 		Vice
President	 
	 	 	 	 	 	 	 

 

	 	 	 	PATTERN ENERGY GROUP INC.	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	/s/
Esben Pedersen    	 
	 	 	 	 	Its:	Esben Pedersen	 
	 	 	 	 		Chief
Investment Officer	 
	 	 	 	 	 	 	 

 

	 	 	 	PATTERN ENERGY GROUP 2 LP	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	/s/
Dyann Blaine    	 
	 	 	 	 	Its:	Dyann Blaine	 
	 	 	 	 		Vice
President	 
	 	 	 	 	 	 	 

 

 

 

 

 

Signature
Page to

Second Amended and Restated Non-Competition Agreement 

 

    	 

    	 

    

SCHEDULE
1

 

PEG
LP Retained Assets

 

	PEG LP Retained Asset	Location	Approximate
    Owned MW
	Meikle	British
    Columbia	180
	Conejo
    Solar	Chile	84
	Belle
    River	Ontario	50
	Henvey
    Inlet	Ontario	150
	Mont
    Sainte-Marguerite	Québec	147
	North
    Kent	Ontario	43
	El
    Cabo	New
    Mexico	147

 

 

 

 

 

 

Schedule 1

 

    	 

    	 

    

SCHEDULE
2

 

PEG
Inc. Facilities

 

	Project Name	Size (MW)
	Gulf Wind, TX	283
	Hatchet Ridge, CA	101
	St. Joseph, MB	138
	Spring Valley, NV	152
	Santa Isabel,Puerto Rico	101
	Ocotillo, CA	265
	South Kent,ON	270
	El Arrayán, Chile	115
	Panhandle 1, TX	218
	Panhandle 2, TX	182
	Grand,ON	149
	Post Rock, KS	201
	Lost Creek, MO	150
	K2,ON	270
	Logan’s Gap, TX	200
	Amazon Wind Farm (F),IN	150
	Broadview, NM	324
	Armow, ON	180

 

 

 

 

 

 

Schedule 2Exhibit 10.4

 

 

EXECUTION
VERSION 

 

 

 

 

 

 

 

AMENDED AND RESTATED

MULTILATERAL MANAGEMENT SERVICES AGREEMENT

 

Dated as of June 16, 2017

 

by and among

 

PATTERN ENERGY GROUP INC.,

 

PATTERN ENERGY GROUP LP,

 

and

 

PATTERN ENERGY GROUP 2 LP

 

 

 

 

 

 

 

    	 

    	 

    

Table
of Contents

 

Article
I

DEFINITIONS AND USAGE

 

	Section
    1.01	Definitions	1

 

Article
II

PEG 1’S RESPONSIBILITIES

 

	Section
    2.01	PEG 1 Services	4

 

Article
III

PEG INC.’S RESPONSIBILITIES

 

	Section
    3.01	PEG Inc.
    Services	5
	Section 3.02	MOMA and PAA Services	6

 

Article
IV

PEG 2 RESPONSIBILITIES

 

	Section
    4.01	PEG 2 Services	6

 

Article
V

STANDARD OF PERFORMANCE

 

	Section
    5.01	Diligence,
    Care and Prudence	8
	Section 5.02	Limitation on Liability	8

 

Article
VI

COMPENSATION AND PAYMENT

 

	Section
    6.01	PEG 1 Services	8
	Section 6.02	PEG Inc. Services	9
	Section 6.03	PEG 2 Services	10
	Section 6.04	Billing and Payment	11
	Section 6.05	Records	11

 

Article
VII

PEG 2 TRANSITION

 

	Section
    7.01	PEG 2 Transition	11
	Section 7.02	No Payments	12
	Section 7.03	Reimbursement following
    PEG 2 Transition	12
	Section 7.04	Transition	12

    	 

    	 

    

Article
VIII

REINTEGRATION EVENTS

 

	Section
    8.01	Reintegration
    Event	12
	Section 8.02	No Payments	13
	Section 8.03	Services Following
    the PEG 1 Employee Reintegration	13
	Section 8.04	Services Following
    the PEG 2 Employee Reintegration	13
	Section 8.05	Reimbursement following
    Employee Reintegrations	13
	Section 8.06	Transition	13

 

Article
IX

EMPLOYMENT OF PERSONNEL

 

	Section
    9.01	Personnel	14

 

Article
X

DISPUTE RESOLUTION

 

	Section
    10.01	Procedure	14
	Section 10.02	Continuation of Work	14

 

Article
XI

COMMENCEMENT AND TERMINATION

 

	Section
    11.01	Term	15
	Section 11.02	Cooperation	15
	Section 11.03	Early Termination by
    PEG Inc.	15
	Section 11.04	Early Termination by
    PEG 1	16
	Section 11.05	Early Termination by
    PEG 2	16

 

Article
XII

INDEMNIFICATION AND LIMITATION OF LIABILITY

 

	Section
    12.01	Indemnification	17
	Section 12.02	Exclusion of Consequential
    Damages	18
	Section 12.03	Total Limitation on
    Liability	18
	Section 12.04	Survival	18

 

Article
XIII

RIGHT TO PURCHASE CERTAIN ASSETS

 

	Section
    13.01	Purchase
    Right	18
	Section 13.02	Procedure	18
	Section 13.03	Disputes	18
	Section 13.04	Transfer	18

 

    	 

    	 

    

Article
XIV

MISCELLANEOUS

 

	Section 14.01	Assignment	19
	Section 14.02	Authorization	19
	Section 14.03	Governing Law, Jurisdiction, Venue	19
	Section 14.04	No Partnership	20
	Section 14.05	Notice	20
	Section 14.06	Usage	21
	Section 14.07	Entire Agreement	21
	Section 14.08	Amendment	21
	Section 14.09	Confidential Information	21
	Section 14.10	Discharge of Obligations	22
	Section 14.11	Third Party Beneficiaries	22
	Section 14.12	Severability	22
	Section 14.13	Binding Effect	22
	Section 14.14	Counterparts	22

 

    	 

    	 

    

AMENDED
AND RESTATED

MULTILATERAL MANAGEMENT SERVICES AGREEMENT

 

THIS
AMENDED AND RESTATED MULTILATERAL MANAGEMENT SERVICES AGREEMENT (the “Agreement”) is made as of this 16th
day of June, 2017 (the “Effective Date”), by and among PATTERN ENERGY GROUP INC., a Delaware corporation
(“PEG Inc.”), PATTERN ENERGY GROUP LP, a Delaware limited partnership (“PEG 1”), and PATTERN
ENERGY GROUP 2 LP, a Delaware limited partnership (“PEG 2”). Each of PEG Inc., PEG 1, and PEG 2 is referred
to herein as a “Party” and collectively as the “Parties.”

 

W
I T N E S S E T H:

 

WHEREAS,
PEG Inc. and PEG 1 entered into a Bilateral Management Services Agreement, dated as of October 2, 2013 (the “Initial
Agreement”), as amended by the First Amendment to Bilateral Management Services Agreement dated as of July 3, 2015,
whereby each of PEG Inc. and PEG 1 wishes to engage the other to provide certain management services and each of PEG Inc. and
PEG 1 wishes to accept such engagement to provide such services for the benefit of the other in accordance with the terms and
conditions set forth therein;

 

WHEREAS,
the Parties entered into a Multilateral Management Services Agreement, dated as of December 8, 2016, amending and restating the
Initial Agreement in its entirety (the “Multilateral Agreement”), among other things, to add PEG 2 as a party;

 

WHEREAS,
the Parties desire to amend and restate the Multilateral Agreement to further provide for the rights and obligations of the Parties;

 

WHEREAS,
the Parties contemplate the transfer of PEG 1 employees and employees of its subsidiaries into PEG Inc. or PEG 2 upon the occurrence
of certain events, after which the services provided by PEG 1 will be internalized by PEG Inc. or PEG 2, as applicable, as set
forth herein; and

 

WHEREAS,
entering into this Agreement is mutually beneficial to all Parties as the Parties will be sharing the costs of such services and
by so doing will reduce the respective costs of each Party.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to be legally
bound, hereby amend and restate the Multilateral Agreement in its entirety and further agree as follows:

 

Article
I

DEFINITIONS AND USAGE

 

Section
1.01        Definitions. Unless the context shall otherwise require or the express terms
of this Agreement shall otherwise provide, capitalized terms used herein shall have the following meanings:

 

    1

     

    

“Affiliate”
of a specified Person means any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled
by or is under common control with the Person specified.

 

“Agreement”
is defined in the preamble.

 

“Effective
Date” is defined in the preamble.

 

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

 

“Initial
Agreement” is defined in the preamble.

 

“Multilateral
Agreement” is defined in the preamble.

 

“NASDAQ”
means the NASDAQ Global Market.

 

“notices”
is defined in Section 14.05.

 

“Person”
means any individual, corporation, partnership, joint venture, association, limited liability company, joint stock company, trust,
unincorporated organization or governmental authority.

 

“PEG
1” is defined in the preamble.

 

“PEG
1 Employee Reintegration” is defined in Section 8.01.

 

“PEG
1 LPA” means the First Amended and Restated Agreement of Limited Partnership of PEG 1, dated as of July 15, 2010, as
the same may be amended from time to time.

 

“PEG
1 Reintegration Event” is defined in Section 8.01.

 

“PEG
1 Services” means the services set forth in Section 2.01.

 

“PEG
1 Services Failure” is defined in Section 2.01.

 

“PEG
1 Services Period” is defined in Section 2.01.

 

“PEG
2” is defined in the preamble.

 

“PEG
2 Services Failure” is defined in Section 4.01.

 

“PEG
2 Employee Reintegration” is defined in Section 8.02.

 

“PEG
2 LPA” means the Second Amended and Restated Agreement of Limited Partnership of PEG 2, dated as of the date hereof,
as the same may be amended from time to time.

 

“PEG
2 Reintegration Event” is defined in Section 8.02.

 

    2

     

    

“PEG
2 Services” means the services set forth in Section 4.01.

 

“PEG
2 Transition” is defined in Section 7.01.

 

“PEG
2 Transition Trigger Event” is defined in Section 7.01.

 

“PEG
Inc.” is defined in the preamble.

 

“PEG
Inc. Services” means the services set forth in Section 3.01.

 

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

 

“Senior
Officer” means an officer that has been appointed to the relevant Party’s management committee, board or similar
body charged with the management of such Party.

 

“Shared
PEG Executives” means the senior executives of PEG Inc. who will provide executive management services to PEG 1 or PEG
2 in accordance with Section 3.01 and devote the percentage of time and have the responsibilities to PEG 1 or PEG 2, in
each case, as set forth on Schedule 1 hereto (as such schedule may be updated by mutual agreement of the Parties from time to
time).

 

“Support
Assets” means, with respect to any Party, any asset or assets that may be reasonably necessary for and related to the
administration of such Party’s business, such as computer hardware, software, data back-up infrastructure, facilities and
any other assets as may be reasonably determined by such Party.

 

“Term”
is defined in Section 11.01.

 

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

 

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

 

(i)       are
not suspended from trading on any national or regional securities exchange or association or over-thecounter market at the close
of business; and

 

(ii)       have
traded at least once on the NASDAQ or the national or regional securities exchange or association or over-thecounter market that
is the primary market for the trading of the Class A Shares.

 

“Transaction”
is defined in Section 14.09(c).

 

    3

     

    

Article
II

PEG 1’S RESPONSIBILITIES

 

Section
2.01        PEG 1 Services. Until the earlier of (i) the PEG 1 Reintegration and (ii)
the PEG 2 Transition (the “PEG 1 Services Period”), PEG 1 shall make its personnel and the personnel of its
subsidiaries available to PEG Inc. and PEG 2 to provide and perform the following services for PEG Inc., PEG 2 and their respective
Affiliates and project entities in accordance with, subject to Section 9.01, the scope, instruction, and policies of PEG
Inc. or PEG 2, as applicable (the “PEG 1 Services”):

 

(a)               
day-today administrative services;

 

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

 

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

 

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

 

(e)               
services related to preparation of annual budgets;

 

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

 

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

 

(h)              
services related to human resources support and administration;

 

(i)                
services related to information technology support;

 

(j)                
providing advice with respect to issues concerning project development, permitting, construction management and engineering, power
marketing, environmental management and implementation;

 

(k)              
providing assistance in connection with PEG Inc.’s pursuit of acquisition opportunities;

 

(l)                
services related to obtaining and maintaining insurance;

 

(m)            
services related to maintaining required governmental approvals and permits and preparing and submitting filings with respect
to PEG Inc.’s projects;

 

(n)              
services with respect to compliance with applicable laws and other obligations of PEG Inc. and PEG 2 and their respective projects;

 

(o)              
supervising and monitoring PEG Inc.’s and PEG 2’s and their respective counterparties’ compliance with the terms
and conditions of PEG Inc.’s and PEG 2’s respective

 

    4

     

    

contracts
and performing on behalf of PEG Inc. and PEG 2 reporting and other routine administrative responsibilities under such contracts;
and

 

(p)              
performing such other tasks of an administrative nature as PEG Inc. or PEG 2 may reasonably request from time to time in connection
with or related to PEG Inc. or PEG 2, their respective Affiliates and/or their respective operations.

 

Prior
to taking any action that will materially diminish its ability to provide the PEG 1 Services as contemplated under this Agreement,
PEG 1 will provide PEG Inc. and PEG 2 with advance written notice of such anticipated action. PEG Inc. and PEG 2 shall then have
a period of 30 days to deliver a written response to PEG 1, either consenting to such action or stating that such action may only
be taken following a notice period of six (6) months. Failure by PEG Inc. or PEG 2 to deliver such response within such 30 day
period shall be deemed, with respect to such respective party, consent of the described action. For the avoidance of doubt, PEG
1 may determine, in its sole discretion based on its own business considerations, to take any such action.

 

PEG
1 agrees that, during the PEG 1 Services Period, the PEG 1 Services shall include such resources and services that a reasonably
prudent professional operating in the wind industry would deem appropriate taking into account the business plan, approved budget,
costs and expenses to support the foregoing for each of PEG Inc. and PEG 2. Following notice to PEG 1 by PEG Inc. or PEG 2, as
applicable, notifying PEG 1 of its failure to provide such sufficient resources and services, PEG 1 shall have a period of thirty
(30) days to cure any such failure; provided, however, that if the fact, circumstance or condition that is the subject
of such failure cannot reasonably be remedied within such 30-day period and if, within such period, PEG 1 provides reasonable
evidence to PEG Inc. and PEG 2 that it has commenced, and thereafter proceeds with reasonable due diligence, to remedy such failure,
such period shall be extended for a reasonable period satisfactory to PEG Inc. and PEG 2, acting reasonably, for PEG 1 to remedy
the same. Following such period, in the event that PEG 1 has not cured such failure (unless such failure is a result of the PEG
2 Board of Directors or the PEG LP Board of Directors not providing approval to fund such increased resources and services) (a
“PEG 1 Services Failure”) then, except any time following a PEG 2 Transition, PEG 1 Employee Reintegration,
or PEG 2 Employee Reintegration, PEG 2 shall have the right, in its sole discretion, to (A) cause PEG 1 to hire additional development
personnel, or (B) initiate a wind-down of PEG 2 in accordance with the terms of the PEG 2 LPA; provided that PEG Inc. shall
be afforded a reasonable opportunity to effect a PEG 1 Employee Reintegration following a PEG 1 Services Failure prior to PEG
2 having such right to initiate a wind-down of PEG 2.

 

Article
III

PEG INC.’S RESPONSIBILITIES

 

Section
3.01        PEG Inc. Services. PEG Inc. shall make its personnel and the personnel of
its subsidiaries available to PEG 1 and PEG 2 to provide and perform the following services for PEG 1, PEG 2, and their respective
Affiliates in accordance with, subject to Section 8.01 and Section 8.03, the scope, instruction, and policies of
PEG 1 or PEG 2, as applicable (the “PEG Inc. Services”):

 

    5

     

    

(a)               
provide and perform the PEG 1 Services after a PEG 1 Employee Reintegration;

 

(b)              
provide and perform the PEG 2 Services after a PEG 2 Employee Reintegration;

 

(c)               
act as a Shared PEG Executive, as agreed from time to time (with the Shared PEG Executives on the Effective Date indicated on
Schedule 1 hereto);

 

(d)              
support PEG 1’s and PEG 2’s development activities, analysis of development opportunities and cost analysis and assist
with respect to issues concerning project operations and maintenance to the extent required for PEG 1’s or PEG 2’s
development activities; and

 

(e)               
perform such other tasks of an administrative nature as PEG 1 or PEG 2 may reasonably request from time to time in connection
with or related to PEG 1 or PEG 2 and/or their respective business activities.

 

PEG
Inc. agrees that the PEG Inc. Services shall include such resources and services that a reasonably prudent professional operating
in the wind industry would deem appropriate taking into account the business plan, approved budget, costs and expenses to support
the foregoing for each of PEG 1 and PEG 2. Following notice to PEG Inc. by PEG 2, notifying PEG Inc. of its failure to provide
such sufficient resources and services, PEG Inc. shall have a period of thirty (30) days to cure any such failure; provided,
however, that if the fact, circumstance or condition that is the subject of such failure cannot reasonably be remedied
within such 30-day period and if, within such period, PEG Inc. provides reasonable evidence to PEG 2 that it has commenced, and
thereafter proceeds with reasonable due diligence, to remedy such failure, such period shall be extended for a reasonable period
satisfactory to PEG 2, acting reasonably, for PEG Inc. to remedy the same. Following such period, in the event that PEG Inc. has
not cured such failure (unless such failure is a result of the PEG 2 Board of Directors or the PEG LP Board of Directors not providing
approval to fund such increased resources and services), PEG 2 shall have the right, in its sole discretion, to (A) suspend PEG
Inc. from taking on any additional development projects until such time that PEG Inc. has reasonably demonstrated that sufficient
resources and services are being provided to PEG 2, (B) cause PEG Inc. to hire additional development personnel (if the failure
relates to the provision of (x) PEG 1 Services following the PEG 1 Employee Reintegration or (y) PEG 2 Services following the
PEG 2 Employee Reintegration), or (C) initiate a wind-down of PEG 2 in accordance with the terms of the PEG 2 LPA.

 

Section
3.02        MOMA and PAA Services. PEG Inc. will have the exclusive right, but not the
obligation, to provide services pursuant to Management Operation and Maintenance Agreements (“MOMAs”) and Project
Administration Agreements (“PAAs”) for projects developed by PEG 1 or PEG 2, with all such MOMAs and PAAs to
be negotiated on customary arms’ length terms.

 

Article
IV

PEG 2 RESPONSIBILITIES

 

Section
4.01        PEG 2 Services. Following the consummation of a PEG 2 Transition, PEG 2
shall make its personnel and the personnel of its subsidiaries available to PEG Inc. and PEG 1 to provide and perform the following
services for PEG Inc., PEG 1, and their respective

 

    6

     

    

Affiliates
in accordance with, subject to Section 9.01, the scope, instruction, and policies of PEG Inc. or PEG 1, as applicable (the
“PEG 2 Services”):

 

(a)               
day-today administrative services;

 

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

 

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

 

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

 

(e)               
services related to preparation of annual budgets;

 

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

 

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

 

(h)              
services related to human resources support and administration;

 

(i)                
services related to information technology support;

 

(j)                
providing advice with respect to issues concerning project development, permitting, construction management and engineering, power
marketing, environmental management and implementation;

 

(k)              
providing assistance in connection with PEG Inc.’s pursuit of acquisition opportunities;

 

(l)                
services related to obtaining and maintaining insurance;

 

(m)            
services related to maintaining required governmental approvals and permits and preparing and submitting filings with respect
to PEG Inc.’s projects;

 

(n)              
services with respect to compliance with applicable laws and other obligations of PEG Inc. and PEG 1 and their respective projects;

 

(o)              
supervising and monitoring PEG Inc.’s and PEG 1’s and their respective counterparties’ compliance with the terms
and conditions of PEG Inc.’s and PEG 1’s respective contracts and performing on behalf of PEG Inc. and PEG 1 reporting
and other routine administrative responsibilities under such contracts; and

 

(p)              
performing such other tasks of an administrative nature as PEG Inc. or PEG 1 may reasonably request from time to time in connection
with or related to PEG Inc. or PEG 1, their respective Affiliates and/or their respective operations.

 

    7

     

    

PEG
2 agrees that the PEG 2 Services shall include such resources and services that a reasonably prudent professional operating in
the wind industry would deem appropriate taking into account the business plan, approved budget, costs and expenses to support
the foregoing for each of PEG Inc. and PEG 1. Following notice to PEG 2 by PEG Inc. notifying PEG 2 of its failure to provide
such sufficient resources and services, PEG 2 shall have a period of thirty (30) days to cure any such failure; provided,
however, that if the fact, circumstance or condition that is the subject of such failure cannot reasonably be remedied
within such 30-day period and if, within such period, PEG 2 provides reasonable evidence to PEG Inc. that it has commenced, and
thereafter proceeds with reasonable due diligence, to remedy such failure, such period shall be extended for a reasonable period
satisfactory to PEG Inc., acting reasonably, for PEG 2 to remedy the same. In the event that PEG 2 has not cured such failure
upon the expiration of such period, a “PEG 2 Services Failure” shall have occurred.

 

Article
V

STANDARD OF PERFORMANCE

 

Section
5.01        Diligence, Care and Prudence. Each Party shall use such diligence, care
and prudence in the performance of its duties, including each Party’s respective services set forth in Article II
and Article III hereof and shall devote such time, effort and skills, and shall cause its employees and the employees of
its subsidiaries to devote such time effort and skills, as an ordinary professional in like position would do in like circumstances,
with like executive responsibilities and fiduciary duties in the case of those employees that serve as executive officers of PEG
Inc. who also serve as executive officers of either PEG 1 or PEG 2 (or both), but subject to and in accordance with the provisions
of this Agreement.

 

Section
5.02        Limitation on Liability. A Party shall have no liability under this Agreement
for failure to take actions as to which it has requested in writing the instruction of the other Party to perform if such instruction
is not timely given.

 

Article
VI

COMPENSATION AND PAYMENT

 

Section
6.01        PEG 1 Services. PEG Inc. and PEG 2 shall pay and reimburse PEG 1 for the
PEG 1 Services as follows:

 

(a)               
Reimbursable Costs.

 

(i)                
PEG Inc. shall reimburse PEG 1 for PEG Inc.’s allocable share of the costs incurred by PEG 1, on behalf of PEG Inc. in providing
the PEG 1 Services. Such costs are expected to include, among other things, the share of costs allocable to PEG Inc. for internal,
general and administrative overhead expenses (including rent, utilities, taxes, service contracts, office supplies, insurance
and other such costs), and compensation provided to the personnel of PEG 1.

 

(ii)              
 PEG 2 shall reimburse PEG 1 for PEG 2’s allocable share of the costs incurred by PEG 1, on behalf of PEG 2 in providing
the PEG 1 Services. Such costs are expected to include, among other things, the share of costs allocable to PEG 2 for

 

    8

     

    

internal,
general and administrative overhead expenses (including rent, utilities, taxes, service contracts, office supplies, insurance
and other such costs), and compensation provided to the personnel of PEG 1.

 

(b)              
Reimbursable Expenses.

 

(i)                
PEG Inc. shall reimburse PEG 1, for PEG Inc.’s allocable share of all outof-pocket expenses that PEG 1 incurs or pays in
connection with the performance of the PEG 1 Services.

 

(ii)              
PEG 2 shall reimburse PEG 1, for PEG 2’s allocable share of all outof-pocket expenses that PEG 1 incurs or pays in connection
with the performance of the PEG 1 Services.

 

(c)               
Methodology. The allocation of costs and expenses attributable to PEG Inc. and PEG 2 under Sections 6.01(a) and
(b) above shall be calculated in accordance with the methodology set forth on Exhibit A.

 

(d)              
Certain Fees. For the PEG 1 Services set forth in Section 2.01(j) in addition to any reimbursements due under Sections
6.01(a) and (b) above, PEG Inc. and PEG 2 shall pay a fee in an amount equal to 5% of the cost of such services
(such cost to be determined in accordance to Section 6.01(c)) and the fee shall be payable in accordance with Section
6.04.

 

Section
6.02        PEG Inc. Services. PEG 1 and PEG 2 shall pay and reimburse PEG Inc. for
the PEG Inc. Services as follows:

 

(a)               
Reimbursable Costs.

 

(i)                
PEG 1 shall reimburse PEG Inc. for PEG 1’s allocable share of the costs incurred by PEG Inc. on behalf of PEG 1 in providing
the PEG Inc. Services. Such costs are expected to include, among other things, the share of costs allocable to PEG 1 for internal,
general and administrative overhead expenses (including rent, utilities, taxes, service contracts, office supplies, any Support
Assets transferred to PEG Inc. by PEG 1 pursuant to the Purchase Right herein, insurance and other such costs), and compensation
provided to the personnel of PEG Inc., including, for the avoidance of doubt, compensation provided to executive officers of PEG
Inc. who also serve as executive officers of PEG 1.

 

(ii)              
PEG 2 shall reimburse PEG Inc. for PEG 2’s allocable share of the costs incurred by PEG Inc. on behalf of PEG 2 in providing
the PEG Inc. Services. Such costs are expected to include, among other things, the share of costs allocable to PEG 2 for internal,
general and administrative overhead expenses (including rent, utilities, taxes, service contracts, office supplies, any Support
Assets transferred to PEG Inc. by PEG 2 pursuant to the Purchase Right herein, insurance and other such costs), and compensation
provided to the personnel of PEG Inc., including, for the avoidance of doubt, compensation provided to executive officers of PEG
Inc. who also serve as executive officers of PEG 2.

 

    9

     

    

(b)              
Reimbursable Expenses.

 

(i)                
PEG 1 shall reimburse PEG Inc. for PEG 1’s allocable share of all out-ofpocket expenses that PEG Inc. incurs in connection
with the performance of the PEG Inc. Services.

 

(ii)              
PEG 2 shall reimburse PEG Inc. for PEG 2’s allocable share of all out-ofpocket expenses that PEG Inc. incurs in connection
with the performance of the PEG Inc. Services.

 

(c)               
Methodology. The allocation of costs and expenses attributable to PEG 1 and PEG 2 shall be calculated in accordance with
the methodology set forth on Exhibit A.

 

(d)              
Certain Fees. For the PEG Inc. Services set forth in Section 3.01(d), in addition to any reimbursements due under
Sections 6.02(a) and (b) above, PEG 1 shall pay a fee, in the aggregate, in an amount equal to 5% of the cost of
such services (such cost to be determined in accordance to Section 6.02(c)) and the fee shall be payable in accordance
with Section 6.04.

 

Section
6.03        PEG 2 Services. PEG Inc. and PEG 1 shall pay and reimburse PEG 2 for the
PEG 2 Services as follows:

 

(a)               
Reimbursable Costs.

 

(i)                
PEG Inc. shall reimburse PEG 2 for PEG Inc.’s allocable share of the costs incurred by PEG 2 on behalf of PEG Inc. in providing
the PEG 2 Services. Such costs are expected to include, among other things, the share of costs allocable to PEG Inc. for internal,
general and administrative overhead expenses (including rent, utilities, taxes, service contracts, office supplies, insurance
and other such costs), and compensation provided to the personnel of PEG 2.

 

(ii)              
PEG 1 shall reimburse PEG 2 for PEG 1’s allocable share of the costs incurred by PEG 2 on behalf of PEG 1 in providing the
PEG 2 Services. Such costs are expected to include, among other things, the share of costs allocable to PEG 1 for internal, general
and administrative overhead expenses (including rent, utilities, taxes, service contracts, office supplies, insurance and other
such costs), and compensation provided to the personnel of PEG 2.

 

(b)              
Reimbursable Expenses.

 

(i)                
PEG Inc. shall reimburse PEG 2 for PEG Inc.’s allocable share of all out-of-pocket expenses that PEG 2 incurs or pays in
connection with the performance of the PEG 2 Services.

 

(ii)              
PEG 1 shall reimburse PEG 2 for PEG 1’s allocable share of all out-of-pocket expenses that PEG 2 incurs or pays in connection
with the performance of the PEG 2 Services.

 

    10

     

    

(c)               
Methodology. The allocation of costs and expenses attributable to PEG Inc. and PEG 1 under Sections 6.03(a) and
(b) above shall be calculated in accordance with the methodology set forth on Exhibit A.

 

(d)              
Certain Fees. For the PEG 2 Services set forth in Section 4.01(j) in addition to any reimbursements due under Sections
6.03(a) and (b) above, PEG Inc. and PEG 1 shall pay a fee in an amount equal to 5% of the cost of such services
(such cost to be determined in accordance to Section 6.03(c)) and the fee shall be payable in accordance with Section
6.04.

 

Section
6.04        Billing and Payment. Within thirty (30) days following submission by a Party
of an invoice to the other Party reflecting any fees, costs and expenses due and payable by the other Party (which invoice shall
include copies of third party invoices identifying and substantiating, in reasonable detail, the nature of such fees, costs and
expenses and the basis for reimbursement thereof), the receiving Party shall:

 

(a)               
Make such payment of the fees, costs and expenses, less any portion of such fees, costs and expenses that the receiving Party
disputes in good faith;

 

(b)              
With respect to any disputed portion of such invoice, provide the billing Party with a written statement explaining, in reasonable
detail, the basis for such dispute. The parties shall attempt to resolve any such disputed portion. In the event that the Parties
are unable to resolve such dispute, the provision of Article X hereof shall apply; and

 

(c)               
Any amount owed hereunder that remains unpaid more than ten (10) days after the date such amount is due and payable under this
Agreement shall accrue interest at the Reference Rate beginning on the first (1st) day after such amount became due and payable.

 

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

 

Article
VII

PEG 2 TRANSITION

 

Section
7.01        PEG 2 Transition. PEG 2 shall have the option, exercisable by delivery of
written notice of exercise to PEG 1, with a copy to PEG Inc., to require PEG 1 to cooperate and use reasonable efforts to cause
the employees of PEG 1 and any of its subsidiaries to become employees of PEG 2 or any of its subsidiaries (the “PEG
2 Transition”, and the date, if any, such notice is so delivered, the “PEG 2 Transition Trigger Event”)
and to execute all employment and other agreements and documents reasonably necessary to implement the PEG 2 Transition. From
and after the occurrence of the PEG 2 Transition Trigger Event, PEG 1 will cooperate to cause the PEG 2 Transition to occur within
six (6) months following the PEG 2 Transition Trigger Event or as soon as reasonably practicable thereafter; provided, however,
that PEG 2 shall consult with PEG Inc. at least fifteen (15) calendar days prior to a PEG 2 Transition Trigger Event; provided,
further, that PEG 2 shall not exercise a PEG 2 Transition (or, if a PEG 2 Transition has been exercised, proceed with such PEG
2 Transition) if PEG Inc. provides PEG 2

 

    11

     

    

with
written notice of its intent to exercise a PEG 1 Employee Reintegration within six (6) months following the PEG 2 Transition Trigger
Event.

 

Section
7.02        No Payments. Neither PEG 1 nor PEG Inc. will be required to make any payments
to PEG 2 upon the occurrence of the PEG 2 Transition other than as described in Section 7.03. PEG 2 will not be required
to make any payments to PEG 1 or PEG Inc. upon the occurrence of the PEG 2 Transition, other than the payment of any statutory
severance payments that may be due and payable to Canadian and Chilean employees as result of the PEG 2 Transition. Notwithstanding
anything to the contrary herein, PEG 2 shall not assume any employee-related liabilities (including, without limitation, back
salaries, medical reimbursements, or deferred compensation) of PEG 1 that accrued prior to the consummation of the PEG 2 Transition.

 

Section
7.03        Reimbursement following PEG 2 Transition. Following the PEG 2 Transition,
all third-party transactional costs incurred by PEG 1 or PEG Inc. in connection with the PEG 2 Transition shall be borne by PEG
2.

 

Section
7.04        Transition. Following the PEG 2 Transition Trigger Event, the Parties shall
mutually cooperate and use reasonable best efforts to cause the employees of PEG 1 and its subsidiaries to become the employees
of PEG 2 and to execute all employment and other agreements and documents necessary to implement the PEG 2 Transition.

 

Article
VIII

REINTEGRATION EVENTS

 

Section
8.01        Reintegration Event. Notwithstanding any other provision of this Agreement
to the contrary, PEG Inc. shall have the option, exercisable by delivery of written notice of exercise to PEG 1 or PEG 2:

 

(a)               
 at any time after the earliest to occur of (i) the date that PEG 1 provides written notice to PEG Inc. that PEG 1 will complete
a wind-down within six (6) months following the date of such notice, (ii) the third anniversary of the date hereof, and (iii)
a PEG 1 Services Failure, to require PEG 1 to cause the employees of PEG 1 and its subsidiaries to become employees of PEG Inc.
and its subsidiaries (the “PEG 1 Employee Reintegration” and the date, if any, such notice of exercise is so
delivered, the “PEG 1 Reintegration Event”). From and after the occurrence of the PEG 1 Reintegration Event,
PEG Inc., PEG 1, and PEG 2 will cooperate to cause the PEG 1 Employee Reintegration to occur by the six month anniversary of the
PEG 1 Reintegration Event or as soon as reasonably practical thereafter; and

 

(b)              
at any time after the earliest to occur of (i) the PEG 2 Transition Trigger Event but before the PEG 2 Transition, (ii) the third
anniversary of the date hereof, (iii) a PEG 2 Services Failure and (iv) a wind-up of PEG 2 being initiated, to require PEG 2 to
cause the employees of PEG 2 and its subsidiaries to become employees of PEG Inc. and its subsidiaries (the “PEG 2 Employee
Reintegration” and the date, if any, such notice of exercise is so delivered, the “PEG 2 Reintegration Event”).
From and after the occurrence of the PEG 2 Reintegration Event, PEG Inc., PEG 1, and PEG 2 will cooperate to cause the PEG 2 Employee
Reintegration to occur by

 

    12

     

    

the
six month anniversary of the PEG 2 Reintegration Event or as soon as reasonably practical thereafter.

 

Section
8.02        No Payments. Neither PEG 1 nor PEG 2 will be required to make any payments
to PEG Inc. upon the occurrence of a PEG 1 Employee Reintegration or PEG 2 Employee Reintegration other than as described in Section
8.03 and Section 8.05. PEG Inc. will not be required to make any payments to PEG 1 or PEG 2 upon the occurrence of
the PEG 1 Employee Reintegration or PEG 2 Employee Reintegration, other than the payment of any statutory severance payments that
may be due and payable to Canadian and Chilean employees as result of the PEG 1 Reintegration Event or PEG 2 Reintegration Event,
as applicable. Notwithstanding anything to the contrary herein, PEG Inc. shall not assume any employee-related liabilities (including,
without limitation, back salaries, medical reimbursements, or deferred compensation) of (a) PEG 1 that accrued prior to the consummation
of the PEG 1 Employee Reintegration or (b) PEG 2 that accrued prior to the consummation of the PEG 2 Employee Reintegration.

 

Section
8.03        Services Following the PEG 1 Employee Reintegration. Following the PEG 1
Employee Reintegration, the PEG 1 Services set forth in Section 2.01 shall be deemed to be included in the PEG Inc. Services
set forth in Section 3.01. PEG Inc. shall thereafter continue to provide the PEG Inc. Services to PEG 1 and PEG 2 (including,
for the avoidance of doubt, such capabilities that as result of the PEG 1 Employee Reintegration shall have become capabilities
of PEG Inc.), solely to the extent requested by PEG 1 or PEG 2 in connection with the development, construction, and back-office
activities of PEG 1 or PEG 2, as applicable.

 

Section
8.04        Services Following the PEG 2 Employee Reintegration. Following the PEG 2
Employee Reintegration, the PEG 2 Services set forth in Section 4.01 shall be deemed to be included in the PEG Inc. Services
set forth in Section 3.01. PEG Inc. shall thereafter continue to provide the PEG Inc. Services to PEG 1 and PEG 2 (including,
for the avoidance of doubt, such capabilities that as result of the PEG 2 Employee Reintegration shall have become capabilities
of PEG Inc.), solely to the extent requested by PEG 1 or PEG 2 in connection with the development, construction, and back-office
activities of PEG 1 or PEG 2, as applicable.

 

Section
8.05        Reimbursement following Employee Reintegrations. Following either the PEG
1 Employee Reintegration or PEG 2 Employee Reintegration, PEG 1 and PEG 2 will continue to pay PEG Inc. for the PEG Inc. Services
being provided to PEG 1 or PEG 2, as applicable, consistent with Section 6.02. All third-party transactional costs incurred
by PEG 1, PEG 2 or PEG Inc. in connection with the PEG 1 Employee Reintegration or PEG 2 Employee Reintegration shall be borne
by PEG Inc.

 

Section
8.06        Transition. Following the PEG 1 Employee Reintegration Event or PEG 2 Employee
Reintegration Event, the Parties shall mutually cooperate and use reasonable best efforts to cause the employees of PEG 1 or PEG
2, as applicable, and their respective subsidiaries, to become the employees of PEG Inc. and to execute all employment and other
agreements and documents reasonably necessary to implement the PEG 1 Employee Reintegration or PEG 2 Employee Reintegration, as
applicable.

 

    13

     

    

Article
IX

EMPLOYMENT OF PERSONNEL

 

Section
9.01        Personnel. Notwithstanding any other provision of this Agreement to the
contrary, (i) prior to the occurrence of the PEG 1 Employee Reintegration or PEG 2 Transition, all personnel performing the
PEG 1 Services shall perform such services under the direction and supervision of PEG 1 and its subsidiaries and shall at all
times remain employees or independent contractors, as the case may be, of PEG 1 or one of its subsidiaries (other than PEG Inc.)
or a third party and shall not become or be deemed to be employees of PEG Inc. or PEG 2 or any of their respective subsidiaries
(except pursuant to the PEG 1 Employee Reintegration, PEG 2 Employee Reintegration or PEG 2 Transition, as applicable), (ii) prior
to the occurrence of the PEG 2 Employee Reintegration all personnel performing the PEG 2 Services shall perform such services
under the direction and supervision of PEG 2 and its subsidiaries and shall at all times remain employees or independent contractors,
as the case may be, of PEG 2 or one of its subsidiaries (other than PEG Inc.) or a third party and shall not become or be deemed
to be employees of PEG Inc. or PEG 1 or any of their respective subsidiaries (except pursuant to the PEG 2 Employee Reintegration,
as applicable), and (iii) all personnel performing the PEG Inc. Services shall perform such services under the direction
and supervision of PEG Inc. and its subsidiaries and shall at all times remain employees or independent contractors, as the case
may be, of PEG Inc. or one of its subsidiaries or a third party and shall not become or be deemed to be employees of PEG 1 or
PEG 2 or any of their respective subsidiaries. No person shall perform any services hereunder not authorized to be performed hereunder
by such person.

 

Article
X

DISPUTE RESOLUTION

 

Section
10.01    Procedure. The Parties shall attempt, in good faith, to resolve or cure all disputes by mutual
agreement in accordance with this Article X before initiating any legal action or attempting to enforce any rights or remedies
hereunder (including termination), at law or in equity (regardless of whether this Article X is referenced in the provision
of this Agreement which is the basis for any such dispute). If there is a dispute as to whether a breach or default has occurred
or if any other dispute under this Agreement has arisen, 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, default or dispute. Within five (5), or such other
time as the Parties may agree, days after delivery of such notice, the designated representatives of all Parties shall meet to
discuss and attempt to resolve or cure such dispute or alleged breach or default. If such representatives are unable to resolve
the dispute or alleged breach or default within fifteen (15) days after delivery of such notice, the matter shall be referred
to a “Senior Officer” of PEG Inc., a “Senior Officer” of PEG 1, and a “Senior Officer” of
PEG 2, for resolution or cure. If the Senior Officers are unable to resolve the matter within ten (10) days after the matter has
been referred to them, the Parties may have recourse to mediation, arbitration or other alternative dispute resolution mechanism
of their mutual selection. If the Parties cannot agree on an alternative dispute resolution mechanism, each Party may pursue its
own legal remedies.

 

Section
10.02    Continuation of Work. Pending final resolution of any dispute, the Parties shall continue to fulfill
their respective obligations under this Agreement; provided, however,

 

    14

     

    

that
a Party may withhold any amount that is the subject of dispute from any payment otherwise due hereunder during the pendency of
any dispute resolution proceeding, including the pursuit of legal remedies. Upon a Party prevailing in such dispute, the other
Parties shall immediately pay to the prevailing Party the unpaid amount in dispute with interest thereon, which interest shall
accrue, at the Reference Rate, for each day from and including the date on which such amount was originally due to, but excluding,
the date of actual payment thereof.

 

Article
XI

COMMENCEMENT AND TERMINATION

 

Section
11.01    Term. This Agreement shall continue in full force and effect (a) with respect to PEG 1, until a
wind-up of PEG 1 is completed in accordance with the terms of the PEG 1 LPA, and (b) with respect to PEG 2, until a wind-up of
PEG 2 is completed in accordance with the terms of the PEG 2 LPA, unless earlier terminated (in whole or in part) in accordance
with Section 11.03, Section 11.04, or Section 11.05 (the “Term”).

 

Section
11.02    Cooperation. In connection with any termination of this Agreement each Party shall cooperate with
all reasonable requests of the other Parties in connection with the transition of its respective services to the entity selected
by the other Parties, if applicable, to undertake such services after such termination of the Term. Following any termination
pursuant to Section 11.03, neither PEG 1 nor PEG 2 shall be entitled to reimbursement of costs and expenses other than
reimbursement for the services and reasonable expenses incurred by PEG 1 or PEG 2, as applicable, in connection with the transition
of the PEG Inc. Services pursuant to this Section 11.02 for the period after such termination. Following any termination
pursuant to Section 11.04, neither PEG 2 nor PEG Inc. shall be entitled to reimbursement of costs and expenses other than
reimbursement for the services and reasonable expenses incurred by PEG 2 or PEG Inc., as applicable, in connection with the transition
of the PEG 1 Services pursuant to this Section 11.02, for the period after such termination. Following any termination
pursuant to Section 11.05, neither PEG Inc. nor PEG 1 shall be entitled to reimbursement of costs and expenses other than
reimbursement for the services and reasonable expenses incurred by PEG Inc. or PEG 1, as applicable, in connection with the transition
of the PEG 2 Services pursuant to this Section 11.02, for the period after such termination.

 

Section
11.03    Early Termination by PEG Inc. PEG Inc. may terminate this Agreement with respect to PEG 1 or PEG
2, as applicable, effective upon written notice of termination to PEG 1 and PEG 2, as applicable, if:

 

(a)               
PEG 1 or PEG 2, as applicable, defaults in the performance or observance of any material term, condition or agreement contained
in this Agreement and such default continues for a period of 30 days after written notice thereof specifying such default and
requesting that the same be remedied in such 30-day period; provided, however, that if the fact, circumstance or
condition that is the subject of such obligation cannot reasonably be remedied within such 30-day period and if, within such period,
PEG 1 or PEG 2, as applicable, provides reasonable evidence to PEG Inc. that it has commenced, and thereafter proceeds with all
due diligence, to remedy the fact, circumstance or condition that is the subject of such obligation, such period shall be extended
for a reasonable period satisfactory to PEG Inc., acting reasonably, for PEG 1 or PEG 2, as applicable, to remedy the same;

 

    15

     

    

(b)              
PEG 1 or PEG 2, as applicable, engages in any act of gross negligence, fraud or wilful misconduct in performance of its obligations
under this Agreement;

 

(c)               
PEG 1 or PEG 2, as applicable, makes a general assignment for the benefit of its creditors, institutes proceedings to be adjudicated
voluntarily bankrupt, consents to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction
as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to the filing of a petition seeking
such reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator,
trustee or assignee in bankruptcy or in insolvency; or

 

(d)              
PEG 1 or PEG 2, as applicable, or substantially all of their respective assets, is acquired by an unrelated third party.

 

Section
11.04    Early Termination by PEG 1. PEG 1 may terminate this Agreement with respect to PEG Inc. or PEG
2, as applicable, effective upon written notice of termination to PEG Inc. or PEG 2, as applicable, if:

 

(a)               
PEG Inc. or PEG 2, as applicable, defaults in the performance or observance of any material term, condition or agreement contained
in this Agreement and such default continues for a period of 30 days after written notice thereof specifying such default and
requesting that the same be remedied in such 30-day period; provided, however, that if the fact, circumstance or
condition that is the subject of such obligation cannot reasonably be remedied within such 30-day period and if, within such period,
PEG Inc. or PEG 2, as applicable, provides reasonable evidence to PEG 1 that it has commenced, and thereafter proceeds with all
due diligence, to remedy the fact, circumstance or condition that is the subject of such obligation, such period shall be extended
for a reasonable period satisfactory to PEG 1, acting reasonably, for PEG Inc. or PEG 2, as applicable, to remedy the same;

 

(b)              
PEG Inc. or PEG 2, as applicable, engages in any act of gross negligence, fraud or wilful misconduct in performance of its obligations
under this Agreement; or

 

(c)               
PEG Inc. or PEG 2, as applicable, makes a general assignment for the benefit of its creditors, institutes proceedings to be adjudicated
voluntarily bankrupt, consents to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction
as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to the filing of a petition seeking
such reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator,
trustee or assignee in bankruptcy or in insolvency.

 

Section
11.05    Early Termination by PEG 2. PEG 2 may terminate this Agreement with respect to PEG Inc. or PEG
1, as applicable, effective upon written notice of termination to PEG Inc. or PEG 1, as applicable, if:

 

(a)               
PEG Inc. or PEG 1, as applicable, defaults in the performance or observance of any material term, condition or agreement contained
in this Agreement and such default continues for a period of 30 days after written notice thereof specifying such default and
requesting that the same be remedied in such 30-day period; provided, however, that if the fact,

 

    16

     

    

circumstance
or condition that is the subject of such obligation cannot reasonably be remedied within such 30-day period and if, within such
period, PEG Inc. or PEG 1, as applicable, provides reasonable evidence to PEG 2 that it has commenced, and thereafter proceeds
with all due diligence, to remedy the fact, circumstance or condition that is the subject of such obligation, such period shall
be extended for a reasonable period satisfactory to PEG 2, acting reasonably, for PEG Inc. or PEG 1, as applicable, to remedy
the same;

 

(b)              
PEG Inc. or PEG 1, as applicable, engages in any act of gross negligence, fraud or wilful misconduct in performance of its obligations
under this Agreement;

 

(c)               
PEG Inc. or PEG 1, as applicable, makes a general assignment for the benefit of its creditors, institutes proceedings to be adjudicated
voluntarily bankrupt, consents to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction
as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to the filing of a petition seeking
such reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator,
trustee or assignee in bankruptcy or in insolvency; or

 

(d)              
With respect to PEG 1, PEG 1, or substantially all of PEG 1’s assets, is or are acquired by an unrelated third party.

 

Article
XII

INDEMNIFICATION AND LIMITATION OF LIABILITY

 

Section
12.01    Indemnification.

 

(a)               
Each of PEG 1 and PEG 2 shall, individually and not joint and severally, indemnify and hold PEG Inc., its officers, directors,
shareholders, employees, representatives, and agents acting on their behalf harmless from any damage, loss, liability or expense
(including reasonable attorneys’ fees) incurred by PEG Inc. as a result of PEG 1’s or PEG 2’s, as applicable,
performance of its respective obligations under this Agreement, except to the extent such damage, loss, liability or expense results
from PEG Inc.’s gross negligence, fraud, wilful misconduct or breach of its obligations under this Agreement.

 

(b)              
Each of PEG Inc. and PEG 1 shall, individually and not joint and severally, indemnify and hold PEG 2, its officers, partners,
members, employees, representatives and agents acting on their behalf harmless from any damage, loss, liability or expense (including
reasonable attorneys’ fees) incurred by PEG 2 as a result of PEG Inc.’s or PEG 1’s, as applicable, performance
of its respective obligations under this Agreement, except to the extent such damage, loss, liability or expense results from
PEG 2’s gross negligence, fraud, wilful misconduct or breach of its obligations under this Agreement.

 

(c)               
Each of PEG Inc. and PEG 2 shall, individually and not joint and severally, indemnify and hold PEG 1, its officers, partners,
members, employees, representatives and agents acting on their behalf harmless from any damage, loss, liability or expense (including
reasonable attorneys’ fees) incurred by PEG 1 as a result of PEG Inc.’s or PEG 2’s, as applicable, performance
of its respective obligations under this Agreement, except to the extent

 

    17

     

    

such
damage, loss, liability or expense results from PEG 1’s gross negligence, fraud, wilful misconduct or breach of its obligations
under this Agreement.

 

Section
12.02    Exclusion of Consequential Damages. None of PEG Inc., PEG 1, or PEG 2 shall be liable hereunder
for punitive, consequential or indirect damages of any nature including, but not limited to, damages for lost profits or revenues
or the loss or use of such profits or revenue.

 

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

 

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

 

Article
XIII

RIGHT TO PURCHASE CERTAIN ASSETS

 

Section
13.01    Purchase Right. To the extent PEG 2 or PEG Inc., as applicable, exercises its right to effect a
PEG 1 Reintegration, PEG 2 Reintegration, or PEG 2 Transition, PEG 2 or PEG Inc., as applicable, shall have the unconditional
right and option to purchase for fair market value (as determined in accordance with this Agreement) any Support Assets owned
by PEG 1 or PEG 2, as applicable, exercisable by such Party in its sole discretion at any time during the Term (the “Purchase
Right”), and PEG 1 or PEG 2, as applicable, will take all actions necessary to cause the sale and transfer to PEG 2
or PEG Inc., as applicable, of any Support Assets with respect to which PEG 2 or PEG Inc., as applicable, has exercised the Purchase
Right.

 

Section
13.02    Procedure. PEG Inc. shall deliver to PEG 1 or PEG 2, as applicable, written notice upon the exercise
of the Purchase Right, which notice shall specify the Support Assets with respect to which PEG Inc. is exercising the Purchase
Right. Thereafter, the Parties will negotiate in good faith the fair market value that PEG Inc. or PEG 2, as applicable, will
pay PEG 1 or PEG 2, as applicable, for any Support Asset being purchased and the other terms and conditions with respect thereto.
The Parties will complete the purchase and sale within thirty (30) days following receipt of PEG Inc.’s or PEG 2’s,
as applicable, initial notice to PEG 1 or PEG 2.

 

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

 

    18

     

    

Section
13.04    Transfer. PEG 1 or PEG 2, as applicable, will exercise commercially reasonable efforts to promptly
transfer and assign to PEG Inc. or PEG 2, as applicable, any licenses, registrations, warranties, consents and other rights associated
with any Support Assets purchased by PEG Inc. or PEG 2, as applicable, pursuant to the Purchase Right. In the event that any such
license, registration, warranty, consent or other right is not by its terms transferable to PEG Inc. or PEG 2, as applicable,,
PEG 1 or PEG 2, as applicable, will enter into such arrangements that give PEG Inc. or PEG 2, as applicable, substantially the
same benefit as though such license, registration, warranty, consent or other right was transferred to PEG Inc. or PEG 2, as applicable,
pursuant to the Purchase Right.

 

Article
XIV

MISCELLANEOUS

 

Section
14.01    Assignment.

 

(a)               
Assignment by PEG 1. PEG 1 may not assign this Agreement without the prior written consent of PEG Inc. and PEG 2.

 

(b)              
Assignment by PEG 2. PEG 2 may not assign this Agreement without the prior written consent of PEG Inc. and PEG 1.

 

(c)               
Assignment by PEG Inc. PEG Inc. may not assign this Agreement without the prior written consent of PEG 1 and PEG 2, provided,
however, that PEG Inc. may pledge, collaterally assign, or encumber its rights under this Agreement to any lender of PEG
Inc. or its Affiliates. In such event, PEG 1 and PEG 2 agree to execute a consent and/or acknowledgement to such collateral assignment
in form and substance reasonably acceptable to PEG 1 and PEG 2 and consistent with thencurrent financing practices. Notwithstanding
the foregoing, PEG Inc. may assign this Agreement without the prior written consent of PEG 1 or PEG 2 to any of its Affiliates,
provided that such Affiliate agrees to be bound by the terms of this Agreement.

 

Section
14.02    Authorization. Except as expressly authorized in writing by PEG Inc. or PEG 2, as applicable, or
as contemplated under the PEG 1 Services, PEG 1 nor any of its employees, officers or agents, shall have the right to bind PEG
Inc. or PEG 2 or create any obligation or to make any representation on behalf of PEG Inc. or PEG 2. Except as expressly authorized
in writing by PEG Inc. or PEG 1, as applicable, PEG 2 nor any of its officers or agents, shall have the right to bind PEG Inc.
or PEG 1 or create any obligation or to make any representation on behalf of PEG Inc. or PEG 1. Except as expressly authorized
in writing by PEG 1 and PEG 2, as applicable, or as contemplated under the PEG Inc. Services, PEG Inc. nor any of its employees,
officers or agents, shall have the right to bind PEG 1 or PEG 2 or create any obligation or to make any representation on behalf
of PEG 1 or PEG 2.

 

Section
14.03    Governing Law, Jurisdiction, Venue. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of New York excluding any conflict-oflaws rule or principle that might refer the governance or the
construction of this Agreement to the law of another jurisdiction irrespective of the choice of laws principles. Each Party hereby
irrevocably submits to the exclusive jurisdiction of any state or federal court sitting in New York, New York in connection with
any claim, suit, action or proceeding arising out of or relating to

 

    19

     

    

this
Agreement or the transactions contemplated hereby or any dealings between the Parties relating to the subject matter of this Agreement
and the relationship that is being established. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES TO THIS
AGREEMENT HEREBY IRREVOCABLY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM, SUIT, ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER
OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED.

 

Section
14.04    No Partnership. Nothing contained in this Agreement and no action taken by any Party to this Agreement
shall be (i) deemed to create any company, partnership, joint venture, association or syndicate among or between any of the Parties;
or (ii) except as contemplated under the PEG Inc. Services, the PEG 1 Services, or the PEG 2 Services, as applicable, deemed to
confer on any Party any expressed or implied right, power or authority to enter into any agreement or commitment, express or implied,
or to incur any obligation or liability on behalf of any other Party, except as expressly authorized in writing.

 

Section
14.05    Notice. All notices, requests, consents, demands and other communications (collectively “notices”)
required or permitted to be given under this Agreement shall be in writing signed by the Party giving such notice and shall be
given to each Party at its address or fax number set forth in this Section 14.05 or at such other address or fax number
as such Party may hereafter specify for such purpose by notice to the other Party and shall be either delivered personally or
sent by fax or registered or certified mail, return receipt requested, postage prepaid, or by a nationally recognized overnight
courier service. A notice shall be deemed to have been given (i) when transmitted if given by fax or (ii) when delivered, if given
by any other means. Notices shall be sent to the following addresses:

 

To
PEG Inc.:

 

Pattern
Energy Group Inc.

Pier 1, Bay 3

San Francisco, CA 94111

Attention: General Counsel

Facsimile: (415) 362¬7900

 

To
PEG 1:

 

Pattern
Energy Group LP

Pier 1, Bay 3

San Francisco, CA 94111

Attention: General Counsel

Facsimile: (415) 362¬7900

 

    20

     

    

To
PEG 2:

 

Pattern
Energy Group 2 LP

Pier 1, Bay 3

San Francisco, CA 94111

Attention: General Counsel

Facsimile: (415) 362¬7900

 

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

 

Section
14.07    Entire Agreement. This Agreement (including all appendices and exhibits thereto) constitutes the
entire agreement and understanding of the parties thereto with respect to the subject matter hereof and supersedes all prior written
and oral agreements and understandings with respect to such subject matter.

 

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

 

Section
14.09    Confidential Information.

 

(a)               
Except as required by applicable law or explicitly required or permitted by this Agreement, no Party shall, without the prior
written consent of the other Party, (i) disclose any confidential information obtained from the other Party to any third parties,
other than to consultants, employees, officers and potential financing parties who have agreed to keep such information confidential
as contemplated by this Agreement and who need the information to carry out the purpose for which they were engaged (ii) use any
confidential information obtained from the other party except for the purposes set forth in the Agreement.

 

    21

     

    

(b)              
This Section 14.09 does not apply to information that the receiving party can demonstrate is presently a matter of public
knowledge or which is or becomes available as a matter of public knowledge from a source which is not known to be prohibited from
disclosing such information. In the event that a Party is requested or required by legal or regulatory authority to disclose any
confidential information, the Party shall promptly notify the disclosing Party of such request or requirement prior to disclosure
so that the disclosing Party may seek an appropriate protective order. Notwithstanding any other provision of this Agreement,
the receiving Party shall have the right to disclose only so much of the confidential information as, in the advice of its legal
counsel, the receiving party is legally required to disclose. In such an event, the receiving Party agrees to use good faith efforts
to ensure that all confidential information that is so disclosed will be accorded confidential treatment.

 

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

 

Section
14.10    Discharge of Obligations. With respect to any duties or obligations discharged hereunder by a Party,
such Party may discharge such duties or obligations through the personnel of an affiliate of such Party; provided that, notwithstanding
the foregoing, the Party shall remain fully liable hereunder for such discharged duties and obligations, unless such duties are
assigned pursuant to Section 14.01.

 

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

 

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

 

Section
14.13    Binding Effect. The terms of this Agreement shall be binding upon, and inure to the benefit of,
the Parties hereto and their successors and permitted assigns. Subject to Section 14.11, nothing in this Agreement, whether
express or implied, shall be construed to

 

    22

     

    

give
any Person other than a Party hereto any legal or equitable right, remedy or claim under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

 

Section
14.14    Counterparts. This Agreement may be executed by the Parties hereto in separate counterparts, each
of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and
the same instrument.

 

[REST
OF PAGE INTENTIONALLY LEFT BLANK]

 

    23

     

    

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

 

	 	 	 	PATTERN ENERGY GROUP INC.	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	/s/
Esben Pedersen    	 
	 	 	 	 	Name:	Esben Pedersen	 
	 	 	 	 	Title:	Chief Investment Officer	 
	 	 	 	 	 	 	 

 

 

 

 

 

[Signature Page to Multilateral Management
Services Agreement]

 

    	 

    	 

    

 

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

 

 

 

 

[Signature Page to Multilateral Management
Services Agreement]

 

    	 

    	 

    

 

	 	 	 	PATTERN ENERGY GROUP 2 LP	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	/s/
Dyann Blaine    	 
	 	 	 	 	Name:	Dyann Blaine	 
	 	 	 	 	Title:	Vice President	 
	 	 	 	 	 	 	 

 

 

 

 

 

 

[Signature Page to Multilateral Management
Services Agreement]

 

    	 

    	 

    

Schedule
1 

Shared
PEG Executives

 

	Executive 
	Title
at PEG 1 
	Approximate
Expected Allocation to PEG 1 and PEG 2 (collectively) 

	Mike Garland	Chief Executive Officer	30-50%
	Hunter Armistead	Executive Vice President, Business Development	60-80%
	Daniel Elkort	Executive Vice President and General Counsel	50-70%
	Mike Lyon	Chief Financial Officer	20-40%
	Esben Pedersen	Chief Investment Officer	40-60%
	Kevin Deters	Vice President, Engineering & Construction	70-90%
	Kevin Devlin	Senior Vice President, Strategic Operations	40-50%
	Chris Shugart	Senior Vice President, Operations	10-20%

 

 

 

Schedule
1

 

    	 

    	 

    

Exhibit
A

 

Methodology
for Determining Allocation of Cost and Expenses

 

		1.	Allocation
                                         of costs and expenses will be between Pattern Energy Group LP (PEG 1), Pattern Energy
                                         Group 2 LP (PEG 2) and Pattern Energy Group Inc. (PEG Inc.).

 

		2.	Costs
                                         and expenses relating to the provision of Services by one Party to another Party that
                                         are incurred by (a) PEG 1 or any of its subsidiaries will be allocated to PEG Inc. and
                                         PEG 2, as applicable, (b) PEG Inc. or any of its subsidiaries will be allocated to PEG
                                         1 and PEG 2, as applicable, and (c) PEG 2 or any of its subsidiaries will be allocated
                                         to PEG 1 and PEG Inc., as applicable.

 

		3.	Costs
                                         and expenses incurred in connection with the provision of Services by one Party to another
                                         Party included in the allocation will be:

 

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

 

		b.	Travel
                                         and entertainment;

 

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

 

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

 

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

 

		f.	Cash
                                         bonus compensation for employees; provided, however, with respect to members
                                         of the executive management team of PEG Inc., PEG 1, or PEG 2, as applicable, such bonus
                                         compensation will only be included to the extent that such compensation does not exceed
                                         120% of the average compensation paid to such executive during the three (3) prior calendar
                                         years (or fewer if such executive has less than three (3) years of service) (after disregarding
                                         from such three-year average any compensation in any such year that exceeded the three-year
                                         trailing average of such 120% threshold). For the avoidance of doubt, cash bonus compensation
                                         includes variable cash incentive awards settled in cash in an applicable period; and

 

		g.	Non-cash
                                         compensation for employees, to the extent such non-cash compensation does not exceed
                                         10% of the total compensation paid in such calendar year.

 

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

 

		5.	PEG
                                         1 and PEG 2 will allocate costs and expenses to PEG Inc. by:

 

 

 

Exhibit A

    	 

    	 

    

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

 

		b.	Determine
                                         the allocation percentage from quarterly timestudy questionnaire results. In general,
                                         percent classifications to operating projects owned by PEG Inc. will be used to allocate
                                         costs from PEG 1 or PEG 2, as applicable, to PEG Inc.

 

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

 

		6.	PEG
                                         Inc. and PEG 2 will allocate costs and expenses to PEG 1 by:

 

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

 

		b.	Determine
                                         allocation percentage from quarterly timestudy questionnaire results. In general, percent
                                         classifications to operating projects owned by PEG Inc. will be attributed to PEG Inc.
                                         The remaining percentage will be used to allocate costs from PEG Inc. and PEG 2 to PEG
                                         1.

 

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

 

		7.	PEG
                                         Inc. and PEG 1 will allocate costs and expenses to PEG 2 by:

 

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

 

		b.	Determine
                                         allocation percentage from quarterly timestudy questionnaire results. In general, percent
                                         classifications to operating projects owned by PEG Inc. will be attributed to PEG Inc.
                                         The remaining percentage will be used to allocate costs from PEG Inc. and PEG 1 to PEG
                                         2.

 

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

 

 

 

Exhibit A

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