EX-10.4



 Exhibit 10.4 

Sixth Amended and Restated Rent Supplement 

(ERCOT Transmission Lease) 

December 31, 2016 
 This
Sixth Amended and Restated Rent Supplement (this “Sixth Amended Supplement”) between Sharyland Distribution & Transmission Services, L.L.C. (“Lessor”) and Sharyland Utilities, L.P.
(“Lessee”) is executed and delivered on December 31, 2016, to memorialize supplements to the ERCOT Transmission Lease (as defined below), effective as of January 1, 2017. Capitalized terms used herein that are not
otherwise defined will have the meanings assigned to them in the ERCOT Transmission Lease. 
 WHEREAS, Lessor and Lessee are Parties to a
Lease Agreement (ERCOT Transmission Assets) dated December 1, 2014 (as amended from time to time in accordance with its terms, the “ERCOT Transmission Lease”); 

WHEREAS, on February 26, 2016 the Parties executed a Fifth Amended and Restated Rent Supplement (ERCOT Transmission Lease) effective as
of January 1, 2016, as amended by the First Amendment to Fifth Amended and Restated Rent Supplement (ERCOT Transmission Lease), effective June 13, 2016, and as further amended by the Second Amendment to Fifth Amended and Restated Rent
Supplement (ERCOT Transmission Lease), effective as of September 22, 2016 (collectively, the “Fifth Amended Supplement”); and 

WHEREAS, the Parties wish to amend and restate the Fifth Amended Supplement pursuant to Section 3.2(b) of the ERCOT Transmission Lease;
and 
 WHEREAS, the Parties wish to memorialize in this Sixth Amended Supplement the Incremental CapEx the Parties expect during 2017. 

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt of which is hereby acknowledged,
the Parties hereto agree to the following: 
 1. The Fifth Amended Supplement is hereby amended and restated in its entirety as set forth
below. 
 2. The ERCOT Transmission Lease, except as supplemented by this Sixth Amended Supplement, shall remain in full force and effect.

 Incremental CapEx: 
  

					
	 2014
	  	$	18,470,677	  
	 2015
	  	$	22,517,350	  
	 2016
	  	$	9,237,495	* 
	 2017
	  	$	4,553,684	** 

  

	*	 Represents the aggregate amount of transmission Incremental CapEx the Parties expected to be placed in service in
2016. Rent supplements with respect to this transmission Incremental CapEx were agreed to and memorialized as part of the Fourth Amended and Restated Rent Supplement (ERCOT Transmission Lease) dated December 31, 2015. Of the 2016 Incremental
CapEx, an aggregate of $4,244,655 was expected to be in service as of the balance sheet date reflected in Lessee’s first 2016 Regulatory Order (“First 2016 CapEx”), an aggregate of $2,086,871 was expected to be in service as of
the balance sheet date reflected in Lessee’s second 2016 Regulatory Order (“Second 2016 CapEx”), and an aggregate of $2,905,968 was expected to be placed in service throughout the remainder of 2016 (“2016 Stub-Year
CapEx”). A “Regulatory Order” is defined as either (i) the PUCT’s approval of Lessee’s application for updated wholesale transmission rates or (ii) final resolution or settlement of a rate case
applicable to Lessee’s transmission rates. The Parties expected the First 2016 CapEx, Second 2016 CapEx, and 2016 



  
 ERCOT
TRANSMISSION LEASE 
  
 
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Stub-Year CapEx, collectively, to have a weighted average in-service date of June 1, 2016. The Parties expected the first 2016 Regulatory Order to be effective on June 1, 2016, the
second 2016 Regulatory Order to be effective on October 1, 2016, and the first 2017 Regulatory Order to be effective on March 1, 2017. The Parties have agreed that any Rent Validation (within the meaning of the ERCOT Transmission Lease)
with respect to First 2016 CapEx, Second 2016 CapEx, or 2016 Stub-Year CapEx will use the actual effective dates of the applicable Regulatory Order (to the extent known), but will otherwise be determined in accordance with Section 3.2(c) of the
ERCOT Transmission Lease. 


	**	Represents the aggregate amount of transmission Incremental CapEx the Parties expect to be placed in service in 2017. Of the 2017 Incremental CapEx, an aggregate of $0 is expected to be in service as of the balance
sheet date reflected in Lessee’s first 2017 Regulatory Order (“First 2017 CapEx”), an aggregate of $4,553,684 is expected to be in service as of the balance sheet date reflected in Lessee’s second 2017 Regulatory Order
(“Second 2017 CapEx”), and an aggregate of $0 is expected to be placed in service throughout the remainder of 2017 (“2017 Stub-Year CapEx”) and to be included in the first 2018 Regulatory Order. The Parties expect
the First 2017 CapEx, Second 2017 CapEx, and 2017 Stub-Year CapEx, collectively, to have a weighted average in-service date of June 1, 2017. The Parties expect the first 2017 Regulatory Order to be effective on May 1, 2017, the second 2017
Regulatory Order to be effective on March 1, 2018, and the first 2018 Regulatory Order to be effective on June 1, 2018. The Parties agree that any Rent Validation (within the meaning of the ERCOT Transmission Lease) with respect to First
2017 CapEx, Second 2017 CapEx, or 2017 Stub-Year CapEx will use the actual effective dates of the applicable Regulatory Order (to the extent known), but will otherwise be determined in accordance with Section 3.2(c) of the ERCOT Transmission
Lease. 

 Lessee CapEx: 
  

					
	 2014
	  	$	0	  
	 2015
	  	$	0	  
	 2016
	  	$	0	  
	 2017
	  	$	0	  

 Base Rent: 
  

					
	 2014
	  	$	484,276	  
	 2015
	  	$	2,477,452	  
	 2016
	  	$	4,547,412	# 
	 2017
	  	$	4,789,842	## 
	 2018
	  	$	5,037,465	### 
	 2019
	  	$	4,936,440	  
	 2020
	  	$	4,761,952	  
	 2021
	  	$	4,595,655	  
	 2022
	  	$	4,432,302	  

  

	#	The amount of 2016 Base Rent included in the Fifth Amended Supplement was $4,547,412, comprised of 2016 Base Rent payments of $355,151 paid on the 15th day of each month beginning on March 15, 2016 through
August 15, 2016 (with respect to January 2016 through June 2016) and Base Rent payments of $396,049 on the 15th day of each month beginning on September 15, 2016 through December 15, 2016 (with respect to July 2016 through October
2016), with the increase in monthly Base Rent reflecting First 2016 CapEx and commencing July 1, 2016, which was 30 days after the expected approval of Lessee’s first 2016 Regulatory Order. Lessee is scheduled to make a monthly 2016 Base
Rent payment of $416,155 on each of January 15, 2017 and February 15, 2017 (with respect to November 2016 and December 2016), with the increase in monthly Base Rent reflecting Second 2016 CapEx and commencing November 1, 2016, which
was 30 days after the expected approval of Lessee’s second 2016 Regulatory Order. 


  
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TRANSMISSION LEASE 
  
 
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	##	Lessee will make a monthly 2017 Base Rent payment of $399,154 on the 15th day of each month beginning on March 15, 2017 through June 15, 2017 (with respect
to January 2017 through April 2017). Lessee will then make a 2017 Base Rent payment of $399,154 on the 15th day of each month beginning on July 15, 2017 through February 15, 2018 (with
respect to May 2017 through December 2017), with the increase in monthly Base Rent reflecting 2016 Stub-Year CapEx and commencing May 1, 2017, which is 30 days after the expected approval of Lessee’s first 2017 Regulatory Order.



	###	Lessee will make a monthly 2018 Base Rent payment of $387,850 on the 15th day of each month beginning on March 15, 2018 through April 15, 2018 (with respect
to January 2018 through February 2018). Lessee will then make a 2018 Base Rent payment of $426,176 on the 15th day of each month beginning on May 15, 2018 through July 15, 2018 (with
respect to March 2018 through May 2018), with the increase in monthly Base Rent reflecting Second 2017 CapEx and commencing March 1, 2018, which is 30 days after the expected approval of Lessee’s second 2017 Regulatory Order. Lessee will
then make a 2018 Base Rent payment of $426,176 on the 15th day of each month beginning on August 15, 2018 through February 15, 2019 (with respect to June 2018 through December 2018),
with the increase in monthly Base Rent reflecting 2017 Stub-Year CapEx and commencing June 1, 2018, which is 30 days after the expected approval of Lessee’s first 2018 Regulatory Order. 


Percentage Rent 
 Percentages: 

 

					
	 2014
	  	 	35.8	% 
	 2015
	  	 	35.1	% 
	 2016
	  	 	31.1	% 
	 2017
	  	 	28.2	% 
	 2018
	  	 	27.2	% 
	 2019
	  	 	26.2	% 
	 2020
	  	 	25.3	% 
	 2021
	  	 	24.4	% 
	 2022
	  	 	23.5	% 

 Annual Percentage Rent 

Breakpoints: 
  

					
	 2014
	  	$	484,276	  
	 2015
	  	$	2,477,452	  
	 2016
	  	$	4,608,413	  
	 2017
	  	$	4,818,146	* 
	 2018
	  	$	5,037,465	** 
	 2019
	  	$	4,936,440	  
	 2020
	  	$	4,761,952	  
	 2021
	  	$	4,595,655	  
	 2022
	  	$	4,432,302	  

  

	*	The 2017 Annual Percentage Rent Breakpoint reflects the assumptions set forth above regarding the timing of the first 2017 Regulatory Order and the second 2017 Regulatory Order, as well as the amount of First 2017 CapEx
and Second 2017 CapEx. 


	**	The 2018 Annual Percentage Rent Breakpoint reflects the assumptions set forth above regarding the timing of the first 2017 Regulatory Order, the second 2017 Regulatory Order, and the first 2018 Regulatory Order, as well
as the amount of First 2017 CapEx, Second 2017 CapEx, and 2017 Stub-Year CapEx. 


  
 ERCOT
TRANSMISSION LEASE 
  
 
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 Revenues Attributable to 

Lessee CapEx: 
  

					
	 2014
	  	$	0	  
	 2015
	  	$	0	  
	 2016
	  	$	0	  
	 2017
	  	$	0	  
	 2018
	  	$	0	  
	 2019
	  	$	0	  
	 2020
	  	$	0	  
	 2021
	  	$	0	  
	 2022
	  	$	0	  

 ERCOT Transmission Rate 

Allocation: 
  

	
	before October 3, 2014: 0%
	between October 3, 2014 and March 31, 2015: 2.1%
	between April 1, 2015 and October 31, 2015: 2.1%
	between November 1, 2015 and June 13, 2016: 3.6%
	between June 13, 2016 and September 22, 2016: 4.1%
	between September 23, 2016 and April 30, 2017: 3.6%
	between May 1, 2017 and February 28, 2018: 3.6%
	starting March 1, 2018: 3.6%

 Term of Rent Supplement:         Expires 12/31/22 

  
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TRANSMISSION LEASE 
  
 
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 The Parties have executed this Sixth Amended Supplement to the ERCOT Transmission Lease as of the date set forth
above. 
  

			
	SHARYLAND UTILITIES, L.P.
		
	By:	 	 /s/ Greg Wilks

	Name:	 	Greg Wilks
	Title:	 	Chief Financial Officer
	
	SHARYLAND DISTRIBUTION &
	TRANSMISSION SERVICES, L.L.C.
		
	By:	 	 /s/ Brant Meleski

	Name:	 	Brant Meleski
	Title:	 	Chief Financial Officer



  
 ERCOT
TRANSMISSION LEASE