EX-10.12

EX-10.12 6 d668811dex1012.htm EX-10.12 EX-10.12

Exhibit 10.12

CERTAIN MATERIAL (INDICATED BY AN ASTERISK IN BRACKETS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

CONFIDENTIAL

Turbine Design and Development Agreement for 3.3 MW

February 28, 2014

by and between

WEG Equipamentos Elétricos S.A.

and

Northern Power Systems, Inc.

CONFIDENTIAL

Turbine Design and Development Agreement for 3.3 MW

Table of Contents


Section			Page

0	General Principles of Agreement		1

1	Definitions		2

	1.1	Definitions	2

2	Design of 3.3 MW		3

	2.1	Design of 3.3 MW	3

	2.2	Delivery of Documents and Specifications	4

	2.3	Technical Assistance Services	4

	2.4	Suppliers	4

	2.5	Schedule	5

3	Payment		5

	3.1	Payments	5

	3.2	[ * ]	5

	3.3	Design Fee and Production and Testing Fee	5

	3.4	Payment Terms	6

	3.5	Taxes	6

	3.6	INPI Approval	6

	3.7	[ * ]	7

4	Obligations of NPS and WEG		7

	4.1	Obligations of NPS	7

	4.2	Obligations of WEG	7

	4.3	Mutual Obligations	8

5	Representations and Warranties		9

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	5.1	Representations and Warranties of WEG	9

	5.2	Representations and Warranties of NPS	10

6	Ownership of Inventions; Intellectual Property Rights; Infringement		11

	6.1	Ownership and Rights	11

	6.2	Notice of Infringement	12

	6.3	Third Party Intellectual Property	12

	6.4	Intellectual Property Indemnity	12

	6.5	Intellectual Property Challenge	13

7	Indemnification		13

	7.1	Indemnification by NPS	13

	7.2	Indemnification by WEG	13

	7.3	Indemnification Procedures	14

8	Warranty; Limitation of Liability		14

	8.1	Warranty	14

	8.2	Limitation of Liability	14

9	Force Majeure		15

	9.1	Definition of Force Majeure	15

	9.2	Excuse from Performance; Notice	15

	9.3	Extended Force Majeure Event	16

10	Term; Penalties for Inadvertent Breach; Termination		16

	10.1	Term	16

	10.2	Penalties for Inadvertent Breach; Termination	16

	10.3	Consequences of Termination	17

11	Confidentiality		18

	11.1	Definition	18

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	11.2	Identification and Protection of Confidential Information	19

12	Assignment		20

	12.1	Non-Assignment	20

	12.2	Sale of NPS	21

13	Dispute Resolution		21

	13.1	Amicable Settlement	21

	13.2	Arbitration	22

	13.3	Provisional Relief	22

	13.4	Fees and Costs	22

14	General		22

	14.1	Governing Law and Jurisdiction	22

	14.2	Amendments	22

	14.3	Entire Agreement	23

	14.4	No Waiver; Remedies	23

	14.5	Severability	23

	14.6	Language	23

	14.7	Counterparts	23

	14.8	Survival	23

	14.9	Costs and Expenses	23

	14.10	No Agency	23

	14.11	Notices	24

	14.12	Third Party Benefit	25

	14.13	Non-Solicitation	25

	14.14	Time of Essence	25

	14.15	Interpretation	25

iii

CONFIDENTIAL

Turbine Design and Development Agreement for 3.3 MW

This Turbine Design and Development Agreement for 3.3 MW (this “Agreement”) is made and entered into this 28th day of February, 2014, by and between WEG Equipamentos Elétricos S.A., a company incorporated and existing under the laws of Brazil (“WEG”), with its principal office at Av. Prefeito Waldemar Grubba, 3000, Jaragua do Sul, SC, 89256-900, Brazil, and Northern Power Systems, Inc., a company incorporated and existing under the laws of the State of Delaware, U.S.A. (“NPS”), with its principal office at 29 Pitman Road, Barre, Vermont 05641 U.S.A. WEG and NPS are referred to herein collectively as the “Parties” and individually as a “Party”.

WHEREAS, WEG is a manufacturer of motors, drives, transformers, generators (including generators for wind turbines) and wind turbines;

WHEREAS, NPS has experience in the design and development of wind turbines and the components thereof which incorporate NPS’ proprietary permanent magnet direct drive technology; and

WHEREAS, WEG desires to work with NPS to design and develop a 3.3 megawatt wind turbine with specifications to be agreed to jointly by the Parties, all on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and premises herein set forth and for other good and valuable considerations, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows:

Article 0 – General Principles of Agreement

WEG intends to work with NPS in order to produce and market a 3.3 MW wind turbine on the terms and conditions of this Agreement.

WEG has expertise in the design and production of electrical and power electronics equipment, and an understanding of the needs of the Brazilian marketplace. NPS has expertise in the design of wind turbines and associated power electronics, power conversion technology, loads and controls. As set forth in more detail in this Agreement, WEG hereby engages NPS to design a 3.3 MW wind turbine that will be owned, manufactured and sold by WEG. NPS shall design the turbine to meet WEG’s requirements. WEG and NPS jointly acknowledge that the turbine is intended to meet the objective of stimulating technological development and the improvement of regulatory wind power generation in Brazil.

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Article 1 – Definitions

1.1 Definitions.

“Affiliate” with respect to either Party means any person or company which, directly or indirectly, (a) Controls such Party, (b) is Controlled by such Party, or (c) is Controlled by the same person, who, directly or indirectly, Controls such Party; “Controlling”, “Controlled by” or “Control” with respect to any person or company, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person or company whether through the ownership of voting securities, by agreement or otherwise or the power to elect more than one-half of the directors, partners or other individuals exercising similar authority with respect to such person or company.

“Business Day” means any day other than a Saturday or a Sunday that the banks are open for business in Brazil and the U.S.

“Components” are all systems, sub-systems and parts which are used to produce a complete 3.3 MW Unit, including but not limited to blades, hub, generator, nacelle, tower , pitch drive, generator stator, generator stator module, generator rotor, mainframe, hub casting, main bearing assembly, power converter, cooling loop, transformer, turbine controller, pumps, ladders and bearings, provided that with respect to blades and towers, the Parties agree that NPS shall only be responsible for providing the loads for one set of blades and two tower heights and confirming that such blades and tower will operate appropriately with a 3.3 MW Unit. Any analysis of additional blades and towers requested by WEG will be performed under the MSA (as defined in Section 2.3).

“Developed Intellectual Property” means any intellectual property rights which are newly developed by NPS during the performance of the Development Services.

“Good Industry Practice” means the practices, methods, techniques, designs, standards, skills, diligence, efficiency, reliability and prudence which are generally and reasonably considered state-of-the-art by a reasonably skilled, prudent and experienced person engaged in the same type of undertaking as envisaged under this Agreement.

“Initial Turbine” means the first 3.3 MW Unit manufactured by WEG.

“Intellectual Property” means any intellectual property rights including but not limited to patents, patent applications, grid models, trademarks, designs, copyrights and know-how (including specifications, technical data and other information relating but not limited to inventions, discoveries, developments, design, manufacture, production, quality control data and other proprietary ideas,.

“Law” means all laws, statutes, rules, regulations, orders, ordinances, protocols, codes, guidelines, policies, notices, directions, judgments, decrees or other requirements or official

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directive of any governmental authority or person acting under the authority of any governmental authority and/or of any statutory authority having jurisdiction over NPS, WEG, the 3.3 MW Units, or any Intellectual Property covered by this Agreement.

“3.3 MW Design” means the completed design for the 3.3 MW, meeting the requirements of Section 2.1 below and the specifications described in Appendix 1.1 attached hereto.

“3.3 MW Unit” means a completed 3.3 MW turbine.

“3.3 MW” means the 3.3 MW permanent magnet direct drive wind turbine, including rotor hub, nacelle, generator, and transformer, and loads for the tower and blades, to be designed and developed by NPS under this Agreement.

“Term” means the period from the date of this Agreement until the termination thereof in accordance with its terms, including the Initial Term and any extension thereof.

Article 2 – Design of 3.3 MW

2.1 Design of 3.3 MW.

(a) In consideration of the payment of the fees described in Article 3 below, NPS agrees to undertake the design and development of the 3.3 MW in accordance with the terms of this Agreement. In particular, NPS shall be responsible for the following development scope:

(i)

Turbine system design, loads and controls

(ii)

Mechanical loads analysis

(iii)

Design of structural components (hub, mainframe, spindle) except blade and tower

(iv)

Design or specification of major Components inside the nacelle

(v)

Transformer specification

(vi)

Hub and associated part design and specification

(vii)

Nacelle balance of system design

(viii)

Converter and control system design, in collaboration with WEG

(ix)

[ * ]

(x)

Generator design to be led by NPS with production-specific content (winding design, material selection, etc.) to be reviewed with WEG

(xi)

Statement of Compliance

(xii)

Loads calculations for up to two tower designs

(xiii)

Loads calculations for one blade design

The foregoing services are described in more detail on Appendix 2.1 attached hereto, and are collectively referred to herein as the “Development Services.”

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2.2 Delivery of Documents and Specifications.

(a) NPS shall supply subsystem and component requirements, with data such as surface finishes, surface protection, bolting methods, welding and casting criteria; technical specifications; 3D solid models; schematics; 2D layout drawings; appropriate data sheets; and similar data and information with respect to the 3.3 MW, as mutually agreed by the Parties. WEG shall be responsible for creating all assembly and manufacturing ready drawings, general build instructions, production documents, bill of materials, and manuals. To the extent that WEG makes any changes to the engineering drawings, technical specifications or other data or information provided by NPS to WEG for the prototype construction, then WEG shall deliver copies of such changes to NPS. Upon WEG’s completion of assembly and manufacturing ready drawings, general build instructions, production documents, bill of materials, and manuals, WEG shall deliver copies of all such documents to NPS. Once the manufacturing of the prototype is completed and production drawings have been delivered by WEG to NPS, WEG will not have any additional obligation to provide any copies of changes done to the 3.3 MW, being production drawings, instructions or changes to the machines.

(b) All documentation provided by NPS under this Agreement shall be in English, and WEG shall be responsible for any translation of such documents and the cost thereof.

2.3 Technical Assistance Services. Any specialized services to be performed by NPS for WEG, including but not limited to design or review services for additional towers or blades, design services for new turbine platforms, or new turbine support services, will be performed under the Master Services Agreement (“MSA”) between the Parties dated September 7, 2013. WEG shall pay all costs for travel and living accommodations for NPS personnel performing any such Services.

2.4 Suppliers. WEG shall be responsible for identifying and qualifying suitable suppliers for the Components of the 3.3 MW. NPS shall provide a reasonable limited level of support to WEG at no charge for at least one supplier for all major components for the 3.3 MW and then only up to the time of first article acceptance for such Components. A strong preference will be given by WEG to use suppliers for major components for the 3.3 MW which are the same as the suppliers for such components for the NPS 2.X MW unless such suppliers are not capable of supplying such components for the 3.3 MW or cannot do so on commercially acceptable terms. All support for such suppliers after first article acceptance and all support for new suppliers shall be provided on a fee basis under the MSA. Except as otherwise provided in this Agreement, WEG and NPS expressly agree not to provide copies of any portion of the 3.3 MW Design and any Intellectual Property to any third party whose business or the business of any Affiliate thereof includes the design, sale or manufacture of wind turbines, unless if previously agreed by the Parties in writing. If either WEG or NPS becomes aware that any supplier is not acting in compliance with the terms and conditions of this Agreement, including

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the restrictions of this Section 2.4, the Parties shall reasonably assist each other with the enforcement of their rights against such supplier. NPS shall be permitted to purchase Components from such suppliers for customers inside the NPS Territory and/or to purchase other components from such suppliers for other NPS wind turbines for customers anywhere in the world. To avoid any doubts, WEG has the right to produce Components or other components anywhere in the world and/or to purchase Components or other components from suppliers located anywhere in the world for the 3.3 MW and/or any other WEG wind turbines.

2.5 Schedule. The Parties intend that the design of the 3.3 MW and the manufacture and installation of the Initial Turbine shall be performed in accordance with the following schedule, unless otherwise mutually agreed by the Parties. Deliverables required for completion of each Task are listed below. All deliverables and underlying analysis, design, and documentation work carried out in the support of these Tasks shall be of a form and quality that is reasonably suitable to support design certification of the 3.3MW. [ * ]

The above milestones, and the criteria for determining their completion, are described in more detail on Appendix 2.5 attached hereto. The Parties expressly acknowledge that meeting the above schedule will require cooperation and coordination of their respective activities, including but not limited to prompt review and feedback on design submissions and design changes, coordination of the identification and selection of suppliers for long lead items and major Components of the Initial Turbine, sourcing and manufacture of other materials and equipment necessary to operate and/or test the Initial Turbine, and similar activities. The Parties agree to act in good faith and to cooperate in such activities in order to meet the mutually agreed project schedule.

Article 3 – Payment

3.1 Payments. In consideration of the services and rights to be provided by NPS hereunder, WEG agrees to pay to NPS eight million dollars (US$8,000,000) consisting of [ * ].

3.2 [ * ]

3.3 Design Fee and Production and Testing Fee. The Design Fee shall be paid in accordance with the design fee milestones (the “Design Fee Milestones”) detailed in Section 2.5. The Production and Testing Fee shall be paid in accordance with the production and testing fee milestones (the “Production and Testing Fee Milestones”) detailed in Section 2.5. Where indicated, payments are due as milestones are completed. For the final paid milestone in a section, the last payment for that section will only be made upon completion of all milestones in the section, whether or not a specific payment percentage is assigned. [ * ]

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WEG may install 3.3 MW Units other than the Initial Turbine only after payment of the entire Design Fee, [ * ], and Production and Testing Fee has been paid to NPS. WEG and NPS both acknowledge that upon payment of the milestone fee for Task D listed in Section 2.5 NPS has earned in full the Design Fee. If WEG and NPS jointly determine that changes in the 3.3 MW Design are required to make the turbine commercially viable at any time after completion of final design review (Task D in Section 2.5), the Parties will negotiate in good faith possible changes to the applicable Production and Testing Milestones and related payments.

3.4 Payment Terms. All payments of Design Fee Milestones and Production and Testing Fee Milestones pursuant to Section 3.3 above shall be made by wire transfer in U.S. dollars and are due within twenty (20) days after completion of the applicable payment milestone, and all payments of the [ * ] pursuant to Section 3.2 above shall be made by wire transfer in U.S. dollars on or before the dates indicated. Any failure by WEG to pay any amounts owing to NPS under this Article 3 shall be deemed to be a material breach of this Agreement and shall entitle NPS to suspend performance hereunder and to the remedies set forth in Article 10. If WEG fails to make any payment within twenty (20) days after the date such payment is due under this Agreement, in addition to all other rights which NPS may have at law, in equity or under this Agreement, interest shall accrue on the amount past due, including any disputed amounts later resolved in favor of NPS, at a rate per annum of ten percent (10%), but in no event at a rate greater than permitted by any applicable Law.

3.5 Taxes. The Parties agree that all public levies (taxes, charges, VAT, withholding payment, custom duties, etc.) imposed in connection with the execution or closing of the Agreement shall be borne by NPS to the extent such levies are imposed in the U.S., and by WEG to the extent such levies are imposed in Brazil. Any withholding taxes or like charges which WEG shall be required to withhold on remittance of any payment to NPS under the prevailing tax laws shall not be deducted from the amounts to be paid to NPS, and WEG shall be responsible for the payment of such taxes or charges or obtaining an exemption from such taxes or charges, as appropriate. WEG shall promptly provide NPS with the evidence of its payment of or exemption from all taxes or charges.

3.6 INPI Approval. To the extent that WEG’s ability to make payments to NPS under this Agreement requires the prior approval of the Instituto Nacional da Propriedade Industrial (INPI), WEG shall promptly, but in no event more than fifteen (15) days after the date hereof, submit this Agreement and any other required documents, materials and information to INPI for review. WEG shall promptly respond to any questions or requests for additional information from the INPI and shall keep NPS apprised of the status of the INPI’s review of this Agreement. Without limiting the foregoing, WEG shall provide the INPI protocol number associated with this Agreement to NPS and also shall provide NPS with copies of the initial filing with the INPI and all correspondence to or from the INPI regarding this Agreement.

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3.7 [ * ]

Article 4 – Obligations of NPS and WEG

4.1 Obligations of NPS. Subject to the terms and conditions of this Agreement, NPS hereby agrees and undertakes that it shall discharge the following obligations:

(a) NPS shall complete the Development Services and supply the engineering drawings, technical specifications, and similar data and information as provided in Sections 2.1 and 2.2 above.

(b) NPS shall at all times, obtain and maintain all applicable permits which are required by applicable Law to discharge its obligations hereunder, and shall comply with all Laws applicable to its obligations under this Agreement.

(c) NPS shall maintain throughout the Term comprehensive or commercial general liability insurance with limits of not less than US$1,000,000 per occurrence and US$6,000,000 in the aggregate, consistent with Good Industry Practices covering product liability, bodily injury, broad-form property insurance and including (i) blanket contractual coverage; (ii) specific coverage for errors and omissions regarding its 3.3 MW Design, including coverage for recall due to errors and omissions on its design. Upon request, NPS shall provide to WEG evidence of the required insurance.

4.2 Obligations of WEG. Subject to the terms and conditions of this Agreement, WEG hereby agrees and undertakes that it shall discharge the following obligations:

(a) In connection with WEG’s participation in the design of the 3.3 MW, WEG shall:

(i)

Ensure that its employees and contractors engaged in review or assessment of the 3.3 MW Design or any Component thereof provide to NPS in a prompt and timely manner all information and feedback necessary for NPS to perform the Development Services, attend all scheduled design review meetings, and otherwise cooperate with NPS in the completion of the Development Services;

(ii)

provide to NPS in a timely manner, all necessary information for the design and development of the 3.3 MW including, but not limited to, data relating to climactic and environmental conditions, grid related information and any other relevant information requested by NPS; and

(iii)

select suppliers for long lead items and major Components and enter into all necessary contracts and to make necessary payments to such suppliers in a timely manner, so as to ensure that the assembly and commissioning of the Initial Turbine is achievable within the time period agreed to by the Parties.

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(b) WEG shall manufacture, transport, assemble and install the 3.3 MW Units under this Agreement in accordance with Good Industry Practices, the standards set by the suppliers of Components, and any obligations imposed by any applicable certification requirements or other applicable authority.

(c) WEG will market and sell the 3.3 MW using a WEG product name. WEG may not use the Trademarks, including but not limited to “NPS”, “Northern Power Systems”, “Northern Power” or any derivative thereof in the product name or on an 3.3 MW Unit without the prior written consent of NPS, but WEG may use such marks and the NPS logo in marketing materials for the 3.3 MW Units, subject in all cases to the provisions of Section 6.1(k) below.

(d) WEG shall pay all fees or other payments owing to NPS in accordance with the requirements of this Agreement.

(e) WEG shall maintain throughout the Term comprehensive or commercial general liability insurance with limits of not less than US$1,000,000 per occurrence and US$6,000,000 in the aggregate, consistent with Good Industry Practices covering product liability, bodily injury, broad-form property insurance and including blanket contractual coverage. Upon request, WEG shall provide to NPS evidence of the required insurance.

(f) WEG shall as soon as reasonably practicable notify NPS in writing of any personal injury or death or any material property damage caused by or in any way connected with the Initial Turbine or any 3.3 MW Unit, and the details thereof.

(g) Except as otherwise provided by the terms of this Agreement, WEG shall be solely responsible for the use of the 3.3 MW Design, drawings, specifications and other materials provided to WEG under the Agreement. All technical documents provided to customers of WEG shall be clearly labeled as WEG documents.

4.3 Mutual Obligations. The Parties shall at all times:

4.3.1 Obtain and maintain all applicable permits, registrations and filings which are required by applicable Law to discharge its obligations hereunder, and shall comply with all Laws applicable to its obligations under this Agreement, and shall comply with the U.S. Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. (the “FCPA”), and any similar Laws in Brazil, including without limitation such registration of this Agreement or any other agreement in connection herewith at the relevant commerce authority in Brazil, and provide, upon other Party’s request, the evidence of such approvals to the reasonable satisfaction of the other Party.

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4.3.2 Ensure that all employees of the Parties who are involved in the review or assessment of the 3.3 MW Design, or any Component thereof, or who perform work under or in connection with this Agreement shall be appropriately qualified and trained, and shall be subject to obligations of confidentiality and nonuse sufficient to assure Parties’ compliance with the terms of Article 11.

Article 5 – Representations and Warranties

5.1 Representations and Warranties of WEG. WEG hereby represents and warrants to NPS that, as of the date of this Agreement:

(a) It is duly organized and validly existing under the laws of Brazil and has been in continuous existence since incorporation.

(b) It has full power and authority to execute, deliver and perform its obligations under this Agreement and to carry out the transactions contemplated hereby.

(c) It has taken all necessary corporate and other action under Law and its organizational documents to authorize the execution, delivery and performance of this Agreement.

(d) The obligations of WEG under this Agreement are legally valid, binding and enforceable obligations against WEG in accordance with the terms hereof.

(e) The execution, delivery and performance of this Agreement will not conflict with, result in the breach of, constitute a default under or accelerate performance required by any of the terms of its organizational documents or any Law or any covenant, agreement, understanding, decree or order to which it is a party or by which it or any of its properties or assets is bound or affected.

(f) It has no knowledge of any violation or default with respect to any order, writ, injunction or any decree of any court or any legally binding order of any governmental authority which may result in any material impairment of its ability to perform its obligations and duties under this Agreement.

(g) No approvals from, and no registration, declaration or filing with, any Governmental Authority is required on the part of WEG in connection with the execution, delivery and performance of this Agreement, except those which have already been obtained or which WEG anticipates will be timely obtained in the ordinary course of the performance of this Contract.

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5.2 Representations and Warranties of NPS. NPS hereby represents and warrants to WEG that as of the date of this Agreement:

(a) It is duly organized and validly existing under the laws of the State of Delaware, U.S. and has been in continuous existence since incorporation.

(b) It has full power and authority to execute, deliver and perform its obligations under this Agreement and to carry out the transactions contemplated hereby.

(c) It has taken all necessary corporate and other action under Law and its organizational documents to authorize the execution, delivery and performance of this Agreement.

(d) The obligations of NPS under this Agreement are legally valid, binding and enforceable obligations against NPS in accordance with the terms hereof.

(g) No approvals from, and no registration, declaration or filing with, any Governmental Authority is required on the part of NPS in connection with the execution, delivery and performance of this Agreement, except those which have already been obtained or which NPS anticipates will be timely obtained in the ordinary course of the performance of this Contract.

(h) NPS has examined this Agreement thoroughly and has become familiar with and understands its terms and has the experience and qualifications to perform the development of the 3.3 MW technology in a manner consistent with all of the requirements of this Agreement.

(i) NPS will use its commercially reasonable best efforts to assure that the 3.3 MW Design shall be suitable for the manufacturing, installation, commissioning and commercial operation of 3.3 MW wind turbines, provided that (i) the 3.3 MW Units are manufactured, installed, commissioned, operated and maintained in accordance with NPS’ best practices and guidelines for turbine design, as provided by NPS to WEG in written form; and (ii) the foregoing does not apply to typical wear and tear or Force Majeure (as defined in Article 9 below) conditions.

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Article 6 – Ownership of Inventions; Intellectual Property Rights; Infringement

6.1 Ownership and Rights.

(a) [ * ]

(b) [ * ]

(d) [ * ]

(e) [ * ]

(f) [ * ]

(g) [ * ]

(h) [ * ]

(i) [ * ]

(j) For all purposes of this Agreement, the “NPS Territory” shall mean the U.S., Canada, Europe, Asia, the Middle East, the countries and islands in the Caribbean, and all other geographical areas except South America, Mexico, Central America (excluding all countries and islands in the Caribbean) and sub-Saharan Africa (consisting of all countries on the continent of Africa other than Algeria, Chad, Egypt, Libya, Mauritania, Mali, Morocco, Niger, Sudan, Tunisia, and Western Sahara). [ * ]

(k) During the Term of this Agreement and subject to all terms and conditions herein, including but not limited to Section 4.2(d) above, NPS grants to WEG a nonexclusive, nontransferable right and license (without right to sublicense) to use the following trademarks solely in connection with advertising, promoting and marketing the 3.3 MW outside the NPS Territory: the NPS logo; Northern Power Systems; Northern Power; and such other trademarks as NPS may authorize from time to time in writing (collectively, the “Trademarks”). WEG’s use of the Trademarks shall be in accordance with NPS’ written instructions, and WEG represents that it shall comply with NPS’ then current guidelines for use of the Trademarks. If WEG and NPS decide to use such Trademarks in Brazil, NPS shall obtain the necessary registry of such Trademarks before the Instituto Nacional da Propriedade Industrial (INPI). Nothing herein grants WEG any right, title or interest in the Trademarks. NPS shall at all times retain all right, title and interest in and to all intellectual property rights contained in its Trademarks. WEG agrees not to challenge the Trademarks or registration thereof or to register (or make any filing with respect to) the Trademarks or any trademarks, marks or trade names confusingly similar thereto (or attempt, or induce or assist any third party, to do any of the foregoing) in any jurisdiction. All use and goodwill associated with the Trademarks will inure to the benefit of NPS.

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(l) Except for the rights expressly set forth herein regarding the 3.3 MW, WEG acknowledges that NPS has and shall continue to have sole and exclusive ownership of all right, title, and interest in and to all Intellectual Property existing as of the date hereof, including but not limited to all associated technology, software [ * ], know-how, documentation and all copies, including all derivations, modifications and enhancements thereto (including but not limited to ownership of all Intellectual Property rights) (collectively, “NPS Intellectual Property”). This Agreement does not provide WEG with title, ownership or rights to any NPS Intellectual Property, except for the rights expressly set forth herein regarding the 3.3 MW. WEG agrees not to take any action inconsistent with such ownership, and in particular agrees not to challenge any NPS patents, trademarks or registration thereof or to register (or make any filing with respect to) such patents or trademarks or any trademarks, marks or trade names confusingly similar thereto (or attempt, or induce or assist any third party, to do any of the foregoing). All use and goodwill associated with the Trademarks will inure to the benefit of NPS.

(m) All improvements, alterations, customizations or upgrades to the 3.3 MW Design (“Improvement”), made jointly by WEG and NPS shall be owned by both parties, and shall not be transferred by any Party to third parties without the written consent of the other Party.

6.2 Notice of Infringement. If, during the Term of this Agreement, WEG learns of any actual, alleged or threatened infringement by a third party of any of the NPS Intellectual Property that is directly affecting WEG’s ability to sell 3.3 MW Units in accordance with the terms of this Agreement, WEG shall promptly notify NPS and shall provide NPS with any available information regarding such infringement. In such case, NPS shall have the obligation, at its own expense and with legal counsel of its own choice, to bring suit against any actual, alleged or threatened infringement of the NPS Intellectual Property. Any damages, monetary awards or other amounts recovered, whether by judgment or settlement, pursuant to any suit, proceeding or other legal action taken under this Section 6.2 shall be for the account of NPS, provided that WEG shall receive from NPS, as a compensation for the losses caused to WEG by the acts of the third party, a proportional part of the amounts recovered, net of NPS’ fees, costs and expenses (including but not limited to legal fees and expenses) with respect to such infringement action.

6.3 Third Party Intellectual Property. If any third party claims that the 3.3 MW or any portion of the 3.3 MW Design is covered by a patent or other Intellectual Property it owns, the Party with notice of such claim shall notify the other Party as soon as practicable, and the Parties shall as soon as practicable thereafter discuss in good faith regarding a response.

6.4 Intellectual Property Indemnity.

(a) NPS agrees to indemnify and hold harmless WEG from any claim of any third party that any portion of the 3.3 MW Design provided by NPS that infringes any Intellectual Property rights of any third party, provided that NPS assumes no liability whatsoever

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for infringement to the extent that such claim arises out of (i) any portion of the 3.3 MW Design exclusively provided by WEG; (ii) modifications to the 3.3 MW Design or any 3.3 MW Unit made by WEG, (iii) the combination, by WEG, of the 3.3 MW Design or any 3.3 MW Unit with other products, materials, equipment, parts or apparatus.

(b) WEG agrees to indemnify and hold harmless NPS from any claim of infringement of the Intellectual Property rights of any third party that arises out of (i) modifications of the 3.3 MW Design or any 3.3 MW Unit made by WEG, (ii) any combination of the 3.3 MW Design or any 3.3 MW Unit with other products, materials, equipment, parts or apparatus.

(c) The procedures set forth in Section 7.3 below shall apply with respect to any infringement claim covered by this Section 6.4. With respect to any infringement claim in which NPS would be obligated to indemnify WEG, NPS shall, at its own expense and option, either (i) settle or defend the claim or any suit or proceeding and pay all damages and costs awarded in it against WEG and/or its customers; (ii) procure for WEG and/or its customers the right to continue using the 3.3 MW Design; or (iii) modify the NPS Design so that it becomes non-infringing, bearing the costs incurred by WEG to implement such modifications.

6.5 Intellectual Property Challenge. Should WEG commence, become a party adverse to NPS in, or prosecute, directly or indirectly, any declaratory judgment action or other action alleging the invalidity, unenforceability or non-infringement of any NPS Intellectual Property, then NPS shall provide written notice thereof to WEG and, in the event WEG fails to immediately cease participating in such action, NPS may, upon written notice, terminate this Agreement and all rights and licenses granted hereunder will immediately terminate.

Article 7 – Indemnification

7.1 Indemnification by NPS. NPS shall indemnify, defend and hold harmless WEG, its Affiliates and their respective directors, officers, employees, and agents, and their respective successors, heirs and assigns (the “Indemnitees”), from and against any liability, damage, loss or expense (including reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon such Indemnitees, or any of them, in connection with any third party claims, suits, actions, demands or judgments, including, without limitation, personal injury and product liability matters (but excluding any patent, trademark or tradename infringement matters, which are governed by Section 6.4 above), to the extent arising out of [ * ]

7.2 Indemnification by WEG. WEG shall indemnify, defend and hold harmless NPS, its Affiliates and their respective directors, officers, employees, and agents and their respective successors, heirs and assigns (the “Indemnitees”) from and against any liability, damage, loss or expense (including reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon such Indemnitees, or any of them, in connection with any third party claims, suits, actions, demands or judgments, including, without limitation, personal injury and product liability matters to the extent arising out of [ * ]

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7.3 Indemnification Procedures. In the event that any Indemnitee is seeking indemnification under this Article 7 from a Party (the “Indemnifying Party”), the other Party shall notify the Indemnifying Party of such claim with respect to such Indemnitee as soon as reasonably practicable after the Indemnitee receives notice of the claim, and the Party (on behalf of itself and such Indemnitee) shall permit the Indemnifying Party to assume direction and control of the defense of the claim (including the right to settle the claim solely for monetary consideration) and shall cooperate as requested (at the expense of the Indemnifying Party) in the defense of the claim. The indemnification obligations under this Article 7 shall not apply to amounts paid in settlement of any claim, demand, action or other proceeding if such settlement is effected without the consent of the Indemnifying Party, which consent shall not be withheld or delayed unreasonably. The Indemnitee, its employees and agents, shall reasonably cooperate with the Indemnifying Party and its legal representatives in the investigation of any claim, demand, action or other proceeding covered by this Article 7.

Article 8 – Warranty; Limitation of Liability

8.1 Warranty.

(a) NPS warrants that the personnel providing Development Services to WEG pursuant to this Agreement shall be adequately trained and appropriately skilled in the subject area for which they are responsible. In the event of any claim by WEG of breach of this warranty, WEG shall provide written notice thereof to NPS.

(b) THE GUARANTEES AND WARRANTIES SET FORTH IN THIS AGREEMENT, INCLUDING IN SECTION 8.1(a) ABOVE, ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OR GUARANTEES, EXPRESS OR IMPLIED, OF PERFORMANCE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR OTHERWISE. THERE ARE NO OTHER WARRANTIES, GUARANTEES, AGREEMENTS, OR UNDERSTANDINGS, ORAL OR WRITTEN THAT EXTEND BEYOND THOSE SET FORTH HEREIN WITH RESPECT TO THE 3.3 MW DESIGN OR THE NPS INTELLECTUAL PROPERTY.

8.2 LIMITATION OF LIABILITY. [ * ] IN NO EVENT SHALL EITHER PARTY OR ITS AFFILIATES BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSS OF ACTUAL OR ANTICIPATED PROFITS, REVENUES OR PRODUCT; LOSS BY REASON OF SHUTDOWN OR NON-OPERATION; INCREASED EXPENSE OF OPERATION, BORROWING OR FINANCING; OR INCREASED COST OF CAPITAL, IN EACH CASE REGARDLESS OF WHETHER SUCH LIABILITY ARISES OUT OF BREACH OF

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CONTRACT, GUARANTEE OR WARRANTY, TORT, PRODUCT LIABILITY, INDEMNITY, CONTRIBUTION, STRICT LIABILITY OR ANY OTHER LEGAL THEORY. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, [ * ] IN NO EVENT SHALL ANY OF THE PARTIES OR ITS AFFILIATES BE LIABLE TO THE OTHER PARTY FOR ANY DAMAGES, CLAIMS, DEMANDS, SUITS, CAUSES OF ACTION, LOSSES, COSTS, EXPENSES AND/OR LIABILITIES RELATED IN ANY MANNER TO THIS AGREEMENT IN EXCESS OF [ * ].

Article 9 – Force Majeure

9.1 Definition of Force Majeure. For purposes of this Agreement, “Force Majeure Event” means an event which is beyond the control of a Party, which is unforeseen, unavoidable and insurmountable, and which prevents total or partial performance by such Party. Examples of Force Majeure include:

(a) natural disasters, including hurricanes, monsoons, lightning, flood, earthquakes, fire, winds in excess of 40 meters per second, and severe weather;

(b) war, hostilities (whether war be declared or not), piracy, invasions, mobilizations, requisitions, or embargoes;

(d) contamination by radioactivity;

(e) act or omission of any governmental agency or authority;

(f) civil unrest, riot, agitation or vandalism; and

(g) strikes or lock-outs, including strikes or lock-outs affecting any of the Parties’ subcontractors.

9.2 Excuse from Performance; Notice. If either Party is rendered wholly or partially unable to perform its obligations under this Agreement because of a Force Majeure Event, that Party shall be excused from whatever performance is affected by the Force Majeure Event to the extent so affected. The Party impacted by the Force Majeure Event shall promptly give the other Party written notice describing the particulars of the occurrence. In no event shall the notice be more than five (5) Business Days after the affected Party becomes aware of such occurrence. Promptly thereafter and no later than twenty (20) days after such occurrence, the non-performing Party shall give the other Party written notice estimating the expected duration and probable impact on the performance of such Party’s obligations hereunder, and continue to furnish timely regular reports with respect thereto during the continuation of the Force Majeure Event. The suspension of performance shall be of no greater scope and of no longer duration

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than is reasonably required by the Force Majeure Event. The non-performing Party shall exercise all reasonable efforts to mitigate or limit damages to the other Party. When the non-performing Party is able to resume performance of its obligations under this Agreement, such Party shall give the other Party notice to that effect and shall promptly resume performance hereunder.

9.3 Extended Force Majeure Event. If the Force Majeure Event continues for more than one hundred and twenty (120) days, the Parties shall determine the extent of the influence of the Force Majeure Event upon the performance of obligations under this Agreement, to determine the future course of action. In particular, the Parties will determine:

(a) whether the Agreement should be dissolved; or

(b) whether the Party affected by the Force Majeure Event should be relieved the obligations that it is prevented from discharging by virtue of the Force Majeure; or

(c) whether the Party which is affected by the Force Majeure Event should be permitted to delay the performance of this Agreement by a duration equivalent to the duration of the Force Majeure.

Article 10 – Term; Penalties for Inadvertent Breach; Termination

10.1 Term. This Agreement is effective from the date hereof and shall remain effective for a period of five (5) years (the “Initial Term”). Any extension of the term beyond the Initial Term shall be as mutually agreed by the Parties.

10.2 Penalties for Inadvertent Breach; Termination.

(a) [ * ]

(b) Either Party may terminate this Agreement:

(i) if the other Party breaches a material provision of this Agreement and fails to cure such breach within thirty (30) days after receiving written notice of such breach from the non-breaching Party, provided that [ * ]; or

(ii) immediately upon written notice, if the other Party makes an assignment for the benefit of creditors, or a receiver, trustee in bankruptcy or similar officer is appointed to take charge of any or all of the other Party’s property, or the other Party seeks protection under any bankruptcy, receivership, trust deed, creditors arrangement, composition or comparable proceeding or such a proceeding is instituted against the other Party and is not dismissed within 90 days, or the other Party becomes insolvent or, without a successor, dissolves or liquidates.

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(iii) upon notice to the breaching party in the event of any material violation by any party of applicable Laws, including but not limited to the U.S. Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq., or any similar Law of any jurisdiction, when the breaching party fails to cure such breach within thirty (30) days after receiving written notice of such breach from the non-breaching Party.

(c) If WEG breaches any payment obligation under Article 3 and such breach is not cured within sixty (60) days after written notice from NPS to WEG, NPS may, in lieu of terminating this Agreement and upon written notice to WEG, convert the exclusive rights and licenses granted herein under Section 6.1(e) to nonexclusive rights and licenses. All other terms of this Agreement shall continue in full force and effect.

10.3 Consequences of Termination.

10.3.1 Termination Due to Causes Attributable to WEG. If the termination occurs due to causes exclusively attributable to WEG, the following terms shall apply:

(a) [ * ]

(b) WEG shall return or, in the case of computer files, destroy all NPS Intellectual Property and NPS Confidential Information including any notes and copies made thereof; and shall confirm to NPS in writing that there is no remaining NPS Intellectual Property and NPS Confidential Information in the possession of WEG or with any third parties who may have received such NPS Intellectual Property and NPS Confidential Information from WEG in accordance with the terms of this Agreement. Notwithstanding the foregoing, WEG shall not be required to return, or destroy, as the case may be, any NPS Intellectual Property and NPS Confidential Information (i) that is required for the operation and maintenance of any 3.3 MW Units already installed by WEG, or (ii) as long as WEG has made the payment to NPS referred to in Section 10.3.1(a) above, that is required for the manufacture, installation, operation and maintenance of 3.3 MW Units, and WEG may continue to utilize such NPS Intellectual Property and NPS Confidential Information solely to the extent required for such manufacture, installation, operation and/or maintenance.

10.3.2 Termination Due to Causes Attributable to NPS. If the termination occurs due to causes exclusively attributable to NPS, the following terms shall apply:

(a) [ * ] NPS shall return or, in the case of computer files, destroy all Developed Intellectual Property and WEG Confidential Information including any notes and copies made thereof; and shall confirm to WEG in writing that there is no remaining Developed Intellectual Property and WEG Confidential Information in the possession of NPS or with any third parties who may have received such Developed Intellectual Property and WEG Confidential Information from NPS in accordance with the terms of this

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Agreement. Notwithstanding the foregoing, NPS shall not be required to return or destroy, as the case may be, any Developed Intellectual Property that (i) [ * ]; (ii) is required for the operation and maintenance of any 3.3 MW Units already installed by NPS; or (iii) as long as NPS has made the payment to WEG referred to in Section 10.3.2(a) above, that is required for the manufacture, installation, operation and maintenance of 3.3 MW Units, and NPS may continue to utilize such Developed Intellectual Property solely to the extent required for such manufacture, installation, operation and/or maintenance.

(b) WEG shall cease all use of NPS’ Trademarks but shall maintain all the rights granted hereunder with respect to NPS Intellectual Property outside the NPS Territory as long as WEG has paid to NPS all amounts due by WEG until the date of termination (excluding events not completed nor performed until such date for any reason other than WEG’s action or inaction).

10.3.3 Prior Rights and Obligations. The termination of this Agreement shall not release either Party from its obligations arising prior to the date of termination or deprive a Party from the exercise of any rights which have arisen prior to the termination of this Agreement or which survive termination of this Agreement.

10.3.4 Rights Not Exclusive. Any rights to terminate this Agreement and/or the rights granted hereunder shall be in addition to and not in lieu of all other rights or remedies obtainable at law or in equity or otherwise. The Parties agree that termination of this Agreement and/or damages provided herein may not be an adequate remedy and the Parties reserve the right to seek specific performance.

Article 11 – Confidentiality

11.1 Definition. The term “Confidential Information” shall mean any and all information relating to the business or operations of either Party not generally known by others, including, but not limited to, information relating to a Party’s products and proposed products, research and development programs and activities, Intellectual Property, technical information and data, trade secrets, manufacturing processes and procedures, finances, organizational structure, business plan and strategies, sales, profitability, sales and marketing strategies, customers, sources of supply and business relationships. Confidential Information shall also include comparable information that a Party may receive or has received belonging to others who do business with such Party. Notwithstanding the foregoing, it is understood and agreed that Confidential Information shall not include any information which:

(a) is, at the time of disclosure by the disclosing Party hereunder, or thereafter becomes, a part of the public domain or publicly known or available through no fault or negligence of the receiving Party;

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(b) was otherwise in the receiving Party’s lawful possession prior to disclosure by the disclosing Party, other than under an obligation of confidentiality;

(c) was independently discovered or developed by the receiving Party, without use of the other Party’s Confidential Information, as can be demonstrated by competent proof; or

(d) is lawfully disclosed to the receiving Party on a non-confidential basis by a third party who is not in violation of an obligation of confidentiality to the disclosing Party relative to such information.

11.2 Identification and Protection of Confidential Information.

(a) All information to be treated as Confidential Information subject to the provisions of this Agreement shall be clearly marked as such (or, if communicated verbally, shall be verbally identified as confidential at the time of disclosure). Confidential Information may be disclosed by the receiving Party only to those employees of such Party that have a “need to know” such information in order to perform their responsibilities under this Agreement on behalf of such Party. The receiving Party will, and will cause each of its employees to:

(i) keep in utmost confidence all of the disclosing Party’s Confidential Information;

(ii) not use any of the disclosing Party’s Confidential Information for any purpose other than the performance of this Agreement;

(iii) not disclose any of the disclosing Party’s Confidential Information to any third party without the disclosing Party’s prior written consent except in the distribution to customers and suppliers for usual and customary wind turbine business purposes, provided, that each such customer and supplier shall have first entered into a confidentiality agreement in regard to such Confidential Information containing provisions protective of the disclosing Party’s rights therein that are at least as protective as those set forth herein;

(iv) not cause or permit reverse engineering or copying of any of the disclosing Party’s Confidential Information or decompilation or disassembly of any software programs which are part of such Confidential Information; and

(v) within thirty (30) days after the termination of this Agreement for any reason, return to the disclosing Party or destroy all of the disclosing Party’s Confidential Information in the possession of the receiving Party, regardless of form and including, without limitation, all copies, analyses, derivations and compilations of such Confidential Information and provide verification by a senior officer of the receiving Party that all such Confidential Information has been returned to the disclosing Party or has been destroyed.

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(b) Without limiting the foregoing, the receiving Party agrees to employ with regard to the disclosing Party’s Confidential Information procedures no less restrictive than the strictest procedures used by the receiving Party to protect its own confidential information, and in no case less than a reasonable degree of care under the circumstances. In particular, WEG (i) shall maintain all written NPS Confidential Information and all source code in secure locations which may only be accessed by WEG employees who are authorized to have access to such information in accordance with the terms of this Article 11; (ii) shall maintain all electronic NPS Confidential Information and all source code on separate, secure servers and computers which are password-protected and which may only be accessed by WEG employees who are authorized to have access to such information in accordance with the terms of this Article 11; (iii) shall treat NPS Confidential Information involving magnets, generator stator modules and converter control boards like the most sensitive WEG Confidential Information and shall not disclose such NPS Confidential Information to any third party other than experienced and qualified suppliers which will be providing such Components to WEG; and (iv) shall treat all source code like the most sensitive WEG Confidential Information and shall not disclose source code to any third party for any reason. The receiving Party shall promptly notify the disclosing Party of any known unauthorized use or disclosure of the disclosing Party’s Confidential Information, and will cooperate with the disclosing Party in any litigation brought by the disclosing Party against third parties to protect its proprietary rights.

(c) In the event that either Party is requested or required by a court, by governmental action or otherwise in connection with legal proceedings (by oral question, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information of the disclosing Party, the receiving Party agrees to promptly notify the disclosing Party in writing of such request or requirement so that the disclosing Party may seek a protective order or, in its discretion, waive compliance with these confidentiality provisions.

(d) WEG acknowledges by signing this Agreement that the NPS Intellectual Property was not known by WEG prior to the execution of this Agreement and constitutes Confidential Information of NPS.

(e) The obligations set forth in this Article 11 shall survive any termination of this Agreement for a period of five (5) years.

Article 12 – Assignment

12.1 Non-Assignment. This Agreement may not be assigned by either Party without the prior written consent of the other Party, such consent not to be unreasonably withheld or delayed, provided, however that (a) subject to Section 12.2 below, either Party may assign this

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Agreement in whole, without the prior consent of the other Party, to a successor in ownership of all or substantially all of its business assets to which this Agreement pertains, whether by sale of assets, merger, consolidation or otherwise, and (b) either Party may assign this Agreement in whole or in part, without the prior consent of the other Party, to any one or more of its Affiliates (including, without limitation, an Affiliate formed by the amalgamation of such Party with another person or otherwise) so long as such Affiliate remains an Affiliate of such Party and provided that (i) the successor or Affiliate agrees in writing to be bound by the terms of this Agreement and (ii) no such assignment shall place the non-assigning Party in a worse financial position by virtue of such assignment (including without limitation, with respect to taxes if the assignee is subject to the laws of a jurisdiction which different from the assigning Party). Any other purported assignments shall void. This Agreement shall be binding upon any such permitted assignee and, subject to the restrictions on assignments herein set forth, inure to the benefit of the successors and assigns of each of the Parties hereto.

12.2 Sale of NPS. [ * ]

Article 13 – Dispute Resolution

13.1 Amicable Settlement. Other than for equitable remedies, such as injunction, which may be pursued under Section 13.3, prior to the initiation of any legal action or proceeding to resolve disputes between the Parties, in the event a dispute arises between WEG and NPS regarding, arising out of, relating to or in connection with this Agreement, its application, interpretation, breach, termination, validity or invalidity thereof, or other related matter, or any other matter involving the Parties or any Affiliate thereof (each of the foregoing, a “Dispute”), upon the written request of either WEG or NPS (a “Request”), the Parties shall use commercially reasonable efforts in good faith to settle the Dispute amicably. If a Dispute is not resolved within sixty (60) days after written notice of a Dispute by one Party to the other Party then the provisions of Section 13.2 shall apply.

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13.2 Arbitration. All Disputes that remain unresolved pursuant to Section 13.1 shall be submitted to the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) and shall be finally settled under the Rules of Arbitration of the ICC by a panel of three arbitrators. Each Party shall appoint one arbitrator, and the two arbitrators so appointed shall jointly appoint a third arbitrator. In the event of the failure by any Party to appoint an arbitrator within thirty (30) days from the date of the receipt of the notice from the other Party and/or failure by the two arbitrators appointed by the Parties to appoint the third arbitrator within a period of thirty (30) days, such arbitrator(s) shall be appointed by the ICC. The place of arbitration shall be New York, New York, USA and the language of such arbitration shall be English. Both Parties shall bear equally the cost of the arbitration, unless otherwise determined by the arbitrators. All decisions of the arbitrators shall be final and binding on both Parties and enforceable in any court of competent jurisdiction. Notwithstanding this, application may be made to any court for a judicial acceptance of the award or order of enforcement. In the event of judicial acceptance or an order of enforcement, each Party expressly waives all rights to object thereto.

13.3 Provisional Relief. In connection with any Dispute, each Party may seek and shall be entitled to receive provisional equitable relief from any court of competent jurisdiction, including without limitation provisional injunctive relief, provided that the final resolution of the Dispute shall be through the arbitral tribunal appointed in accordance with Section 13.2. Each of WEG and NPS hereby submit to the exclusive jurisdiction of the courts located in New York, New York, USA with respect to any such claim for provisional relief, provided that NPS may elect to bring such claim for provisional relief in any court which would have jurisdiction to hear such claim. Each Party waives any objection such Party might have to the laying of venue in such courts, including but not limited to objections based on lack of personal jurisdiction, improper venue or inconvenience of the forum.

13.4 Fees and Costs. In any action or proceeding to enforce rights under this Agreement, the prevailing party shall be entitled to recover reasonable costs and attorneys’ fees.

Article 14 – General

14.1 Governing Law and Jurisdiction. This Agreement shall be governed by, and interpreted and construed in accordance with, the laws of New York, USA without regard to its conflict of laws rules. The United Nations Convention on the International Sale of Goods shall not apply to this Agreement.

14.2 Amendments. No amendments or waiver of any provision of this Agreement, nor consent to any departure by any of the Parties there from, shall in any event be effective unless the same shall be in writing and signed by the Parties hereto and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it is given.

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14.3 Entire Agreement. This Agreement, including all Schedules and Annexes, together with the Mutual Confidentiality Agreement between the Parties dated November 1, 2012, constitutes the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all previous agreements by and between the Parties as well as all proposals or term sheets, oral or written, and all negotiations, conversations or discussions heretofore had between the Parties related to the subject matter of this Agreement. The Parties expressly acknowledge and agree that this Agreement supersedes the terms of Section 2.6 (NPS 3.X Option) of that certain Technological Know-How Transfer Agreement for NPS 2.X dated March 20, 2013 between the Parties, and that such section is no void and of no further force or effect.

14.4 No Waiver; Remedies. No failure on the part of either Party to exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof or a consent thereto; nor shall any single or partial exercise of any such right, power or privilege preclude any other of further exercise thereof or the exercise of any other right, power or privilege. The remedies herein provided are cumulative and not exclusive of any remedies provided by applicable law.

14.5 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable.

14.6 Language. All notices, certificates, correspondence or other communications under or in connection with this Agreement, shall be in English.

14.7 Counterparts. This Agreement is made in three (3) original copies, each having the same contents and the Parties have read and thoroughly understand the contents hereof and have hereby affixed their respective signatures and seals before witnesses. All counterparts shall constitute but one and the same Agreement.

14.8 Survival. Articles 10,11,13 and 14 and Section 8.2 any other provision of this Agreement where the context requires, as well as any rights or obligations otherwise accrued hereunder (including but not limited to any accrued payment obligations) shall continue to bind the Parties notwithstanding the termination or expiry of this Agreement.

14.9 Costs and Expenses. Except as otherwise expressly provided herein, each Party shall bear its own costs and expenses, including without limitation any fees payable to its advisors, in connection with the negotiation, preparation and execution of this Agreement.

14.10 No Agency. The Parties agree that nothing in this Agreement shall be in any manner interpreted to constitute an agency or partnership for and on behalf of any other Party and the relationship between the Parties is as a principal to principal and on an arm’s length basis. Except as otherwise expressly agreed to, nothing contained herein shall confer, on any Party, the authority to incur any obligation or liability on behalf of the other Party or bind the other.

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14.11 Notices. All notices, requests, demands or other communication required or permitted to be given under this Agreement and the provisions contained herein shall be written in English and shall be deemed to be duly sent by registered mail, postage prepaid or transmitted by facsimile transmission or internationally recognized courier to the other Party at the address indicated below:

(i)

In the case of WEG, to:

WEG Equipamentos Elétricos S.A.

Av. Prefeito Waldemar Grubba,

3000 Jaragua do Sul, SC, 89256-900

Brazil

Attention: Joao Paulo Gualberto da Silva

E-mail: jsilva@weg.net

Facsimile: +55 47 3276-4593

with

a copy to:

WEG S.A.

Av. Prefeito Waldemar Grubba,

3300 Jaragua do Sul, SC, 89256-900

Brazil

Attention: Paulo Ubiratan Mehret da Silva

E-mail: pauloms@weg.net

Facsimile: +55 47 3276-7803

(ii)

In the case of NPS, to:

Northern Power Systems, Inc.

29 Pitman Road

Barre, Vermont 05641

U.S.A.

Attention: Troy C. Patton, President and Chief Executive Officer

E-mail: tpatton@northernpower.com

Facsimile: +1 802-461-2998

with

a copy to:

Northern Power Systems, Inc.

281 Winter Street, Suite 120

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Waltham, Massachusetts 02451

U.S.A.

Attention: Elliot J. Mark, Vice President and General Counsel

E-mail: emark@northernpower.com

Facsimile: +1 617-871-1433

or at such other address as the Party to whom such notices, requests, demands or other communication is to be given shall have last notified the Party giving the same in the manner provided in this Section, but no such change of address shall be deemed to have been given until it is actually received by the Party sought to be charged with the knowledge of its contents. Any notice, request, demand or other communication delivered to the Party to whom it is addressed as provided in this Section 14.11 shall be deemed (unless there is evidence that it has been received earlier) to have been given and received, if:

(i)

sent by registered mail or courier, upon confirmation of delivery; or

(ii)

sent by facsimile or e-mail, when confirmation of its transmission has been recorded by the sender’s facsimile machine or e-mail account.

14.12 Third Party Benefit. Nothing herein expressed or implied is intended, nor shall it be construed to confer upon or give to any third party any right, remedy or claim under or by reason of this Agreement or any part hereof.

14.13 Non-Solicitation. Each Party agrees that during the term of this Agreement and for a period of one (1) year following its expiration or termination, it will not entice, solicit, hire or encourage any employee of the other Party to leave the other Party’s employ, except that it may hire an employee of the other Party who, without individual solicitation, responds to advertisements or solicitations aimed at the general public.

14.14 Time of Essence. The Parties agree that time is of the essence for all deliverables under this Agreement, including but not limited to NPS’ obligations to provide the Design Services, and WEG’s obligations to manufacture, install and commission the Initial Turbine.

14.15 Interpretation. In the interpretation of this Agreement, the following rules shall apply:

(a) The singular includes the plural and vice versa. A reference to any gender includes all genders.

(b) A reference to any document, agreement, deed or other instrument (including, without limitation, references to this Agreement) includes the same as amended, supplemented, restated, novated or replaced, from time to time and shall include all schedules, annexes or other documents incorporated by reference therein.

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(c) A reference to any Law, includes any amendment, modification, re-enactment or change in interpretation or applicability of such law.

(d) The words ‘include’ and ‘including’ are to be construed without limitation. The terms ‘herein’, ‘hereof’, ‘hereto’, ‘hereunder’ and words of similar purport refer to this Agreement as a whole.

(e) In this Agreement, headings are for the convenience of reference only and are not intended as complete or accurate descriptions of the content thereof and shall not be used to interpret the provisions of this Agreement.

(f) Any rule of interpretation which would require that an agreement be interpreted against the person or Party drafting it shall have no application in the case of this Agreement.

[signatures on next page]

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IN WITNESS WHEREOF, the Parties have executed this Agreement under seal as of the date first written above.

Northern Power Systems, Inc.


By	/s/ Troy Patton
	(Legally valid Signature)

	Troy Patton
	(Typed name of representative)

	President and Chief Executive Officer
	(Title)

	Barre, VT USA March 5, 2014
	(Place/Date signed)

WEG Equipamentos Elétricos S.A.

By	/s/ João Paulo Silva	/s/ Sinésio Tenfen
	(Legally valid Signature)	(Legally valid Signature)

	João Paulo Silva	Sinésio Tenfen
	(Typed name of representative)	(Typed name of representative)

	Wind Power Manager	Director
	(Title)	(Title)

	Jaraguá do Sul February 28, 2014	Jaraguá do Sul February 28, 2014
	(Place/Date signed)	(Place/Date signed)

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Witnesses:

/s/ Elliot J. Mark

Elliot Mark (U.S. Citizen, married, holder of identity card n.

XXXXXXXX, with professional address at 29 Pitman Road, Barre, Vermont 05641 U.S.A.).

/s/ Paulo Ub Ubiratan Mehret da Silva

Paulo Ubiratan Mehret da Silva (Brazilian, married, holder

of identity card n. XXXXXXXXXX, with professional address

at Av. Pref. Waldemar Grubba, 3300, Vila Lalau, Jaraguá do

Sul, CEP 89256-900, Brazil).