Document:

EX-10.4

 Exhibit 10.4 

Seventh Amended and Restated Rent Supplement 

(CREZ Lease) 
 December 31,
2015 
 This Seventh Amended and Restated Rent Supplement (this “Seventh Amended Supplement”) between Sharyland
Distribution and Transmission Services, L.L.C. (“Lessor”) and Sharyland Utilities, L.P. (“Lessee”) is executed and delivered on December 31, 2015, to memorialize supplements to the CREZ Lease (as defined
below), effective as of January 1, 2016. Capitalized terms used herein that are not otherwise defined will have the meanings assigned to them in the CREZ Lease. 

WHEREAS, Lessor and Lessee are Parties to a Third Amended and Restated Lease Agreement (CREZ Assets) dated as of December 4, 2015 (as
amended from time to time in accordance with its terms, the “CREZ Lease”); 
 WHEREAS, on March 13, 2015 the Parties
executed a Sixth Amended and Restated Rent Supplement (CREZ Lease) (the “Sixth Amended Supplement”), which the Parties now wish to amend and restate pursuant to Section 3.2(b) of the CREZ Lease; and 

WHEREAS, the Parties intend to memorialize in this Seventh Amended Supplement the Incremental CapEx the Parties expect during 2016; 

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 Sixth Amended Supplement is hereby amended and restated in its entirety as set forth
below. 
 2. The CREZ Lease, except as supplemented by this Seventh Amended Supplement, shall remain in full force and effect. 

Incremental Cap Ex: 
  

					
	2013	  	$	466,424,280	  
	2014	  	$	198,982,000	  
	2015	  	$	10,500,000	* 
	2016	  	$	5,244,389	** 

  

	*	Represents the amount of transmission Incremental CapEx that was expected to be placed in service in 2015, with a weighted average in service date of November 1, 2015. Rent supplements with respect to this
transmission Incremental CapEx were agreed to and memorialized as part of the Fourth Amended and Restated Rent Supplement (CREZ Lease) dated January 1, 2015. 

	**	Represents the aggregate amount of transmission Incremental CapEx the Parties expect to be placed in service in 2016. Of the 2016 Incremental CapEx, $0 is 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 $2,052,263 is 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 $3,192,126 is 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 expect the First 2016 CapEx, Second 2016 CapEx, and
2016 Stub-Year CapEx, collectively, to have a weighted average in-service date of October 1, 2016. The Parties expect 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 agree that any Rent Validation (within the meaning of the CREZ 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 CREZ Lease. 

  
 1 

CREZ LEASE 

 Lessee Cap Ex: 

 

					
	2013	  	$	0	  
	2014	  	$	0	  
	2015	  	$	0	  
	2016	  	$	0	  

 Base Rent: 

 

					
	2013	  	$	21,758,233	  
	2014	  	$	67,335,947	  
	2015	  	$	68,535,384	# 
	2016	  	$	66,855,560	## 
	2017	  	$	64,734,295	### 
	2018	  	$	62,362,318	  
	2019	  	$	60,061,534	  
	2020	  	$	57,849,495	  

  

	#	The amount of 2015 Base Rent included in the Sixth Amended Supplement was $68,535,384, comprised of 2015 Base Rent payments of $5,688,129 paid on the 15th day of each month beginning on March 15, 2015 through
May 15, 2015 (with respect to January 2015 through March 2015) and payments of $5,712,236 on the 15th day of each month beginning on June 15, 2015 through December 15, 2015 (with respect to April 2015 through October
2015). Lessee is scheduled to make a monthly 2015 Base Rent payment of $5,742,672 on each of January 15, 2016 and February 15, 2016 (with respect to November and December 2015). 

	##	Lessee will make a monthly 2016 Base Rent payment of $5,568,035 on the 15th day of each month beginning on March 15, 2016 through August 15, 2016 (with
respect to January 2016 through June 2016). Lessee will then make a monthly 2016 Base Rent payment of $5,568,035 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 is 30 days after approval of Lessee’s first 2016 Regulatory
Order. Lessee will then make a monthly 2016 Base Rent payment of $5,587,604 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 is 30 days after approval of Lessee’s second 2016 Regulatory Order. 

	###	Lessee will make a monthly 2017 Base Rent payment of $5,372,905 on the 15th day of each month beginning on March 15, 2017 through May 15, 2017 (with respect
to January 2017 through March 2017). Lessee will then make a 2017 Base Rent payment of $5,401,731 on the 15th day of each month beginning on June 15, 2017 through February 15, 2018 (with
respect to April 2017 through December 2017), with the increase in monthly Base Rent reflecting 2016 Stub-Year CapEx and commencing April 1, 2017, which is 30 days after approval of Lessee’s first 2017 Regulatory Order. 

Percentage Rent Percentages: 
  

					
	2013	  	 	29.2	% 
	2014	  	 	31.6	% 
	2015	  	 	31.3	% 
	2016	  	 	30.3	% 
	2017	  	 	29.5	% 
	2018	  	 	28.5	% 
	2019	  	 	27.7	% 
	2020	  	 	26.8	% 

  
 2 

CREZ LEASE 

 Annual Percentage Rent Break points: 

 

					
	2013	  	$	21,758,233	  
	2014	  	$	67,335,947	  
	2015	  	$	68,535,384	  
	2016	  	$	66,875,129	* 
	2017	  	$	64,764,829	** 
	2018	  	$	62,362,318	  
	2019	  	$	60,061,534	  
	2020	  	$	57,849,495	  

  

	*	The 2016 Annual Percentage Rent Breakpoint reflects the assumptions set forth above regarding the timing of the first 2016 Regulatory Order and the second 2016 Regulatory Order, as well as the amount of First 2016 CapEx
and Second 2016 CapEx. 

	**	The 2017 Annual Percentage Rent Breakpoint reflects the assumptions set forth above regarding the timing of the first 2016 Regulatory Order, the second 2016 Regulatory Order, and the first 2017 Regulatory Order, as well
as the amount of First 2016 CapEx, Second 2016 CapEx, and 2016 Stub-Year CapEx. 

 Revenues Attributable
to Lessee Capex, by Lease Year: 
  

					
	2013	  	$	0	  
	2014	  	$	0	  
	2015	  	$	0	  
	2016	  	$	0	  

  
  

			
	ERCOT Transmission Rate	 	
	 Allocation
	 	between June 20 and October 17, 2013: 65.3%
		 	between October 17, 2013 and February 25, 2014: 84.8%
		 	between February 25, 2014 and May 1, 2014: 83.3%
		 	between May 1, 2014 and October 3, 2014: 80.9%
		 	between October 3, 2014 and March 31, 2015: 75.8%
		 	between April 1, 2015 and October 31, 2015: 72.7%
		 	between November 1, 2015 and June 1, 2016: 65.6%
		 	between June 1, 2016 and October 1, 2016: 63.2%
		 	starting October 1, 2016: 61.1%

 Term of Rent Supplement: Expires 12/31/20 

  
 3 

CREZ LEASE 

 The Parties have executed this Seventh Amended Supplement to the CREZ 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

  
 CREZ LEASEEX-10.5

 Exhibit 10.5 

Fourth Amended and Restated Rent Supplement 

(ERCOT Transmission Lease) 

December 31, 2015 
 This
Fourth Amended and Restated Rent Supplement (this “Fourth Amended Supplement”) between Sharyland Distribution and Transmission Services, L.L.C. (“Lessor”) and Sharyland Utilities, L.P. (“Lessee”) is
executed and delivered on December 31, 2015, to memorialize supplements to the ERCOT Transmission Lease (as defined below), effective as of January 1, 2016. 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 March 13, 2015 the Parties executed a Third Amended and Restated Rent Supplement (ERCOT Transmission Lease) (the
“Third Amended Supplement”), which the Parties now wish to amend and restate pursuant to Section 3.2(b) of the ERCOT Lease; and 

WHEREAS, the Parties intend to memorialize in this Fourth Amended Supplement the Incremental CapEx the Parties expect during 2016. 

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 Third Amended Supplement is hereby amended and restated in its entirety as set forth
below. 
 2. The ERCOT Transmission Lease, except as supplemented by this Fourth Amended Supplement, shall remain in full force and effect.

 Incremental CapEx: 
  

					
	 2014
	  	$	18,470,677	  
	 2015
	  	$	17,000,000	* 
	 2016
	  	$	9,237,495	** 

  

	*	Represents the amount of transmission Incremental CapEx that was expected to be placed in service in 2015, with a weighted average in service date of September 1, 2015. Rent supplements with respect to this
transmission Incremental CapEx were agreed to and memorialized as part of the Amended and Restated Rent Supplement (ERCOT Transmission Lease) dated January 1, 2015. 

	**	 Represents the aggregate amount of transmission Incremental CapEx the Parties expect to be placed in service in 2016. Of the 2016 Incremental CapEx,
an aggregate of $4,244,655 is 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 is 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 is 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 expect the First 2016 CapEx, Second 2016 CapEx, and 2016 Stub-Year CapEx, collectively, to have a weighted average in-service date of June 1, 2016. The Parties expect 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.

  
 1 

 ERCOT TRANSMISSION LEASE 

 
The Parties agree that any Rent Validation (within the meaning of the ERCOT 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 Lease. 

Lessee CapEx: 
  

					
	 2014
	  	$	0	  
	 2015
	  	$	0	  
	 2016
	  	$	0	  

 Base Rent: 
  

					
	 2014
	  	$	484,276	  
	 2015
	  	$	2,219,582	# 
	 2016
	  	$	3,895,809	## 
	 2017
	  	$	4,176,532	### 
	 2018
	  	$	4,062,820	  
	 2019
	  	$	3,912,353	  
	 2020
	  	$	3,771,276	  
	 2021
	  	$	3,637,213	  
	 2022
	  	$	3,506,636	  

  

	#	The amount of 2015 Base Rent included in the Third Amended Supplement was $2,219,582, comprised of 2015 Base Rent payments of $158,795 paid on the 15th day of each month beginning on March 15, 2015 through
May 15, 2015 (with respect to January 2015 through March 2015) and payments of $160,497 on the 15th day of each month beginning on June 15, 2015 through December 15, 2015 (with respect to April 2015 through October 2015). Lessee
is scheduled to make a monthly 2015 Base Rent payment of $309,857 on each of January 15, 2016 and February 15, 2016 (with respect to November and December 2015). 

	##	Lessee will make a monthly 2016 Base Rent payment of $300,851 on the 15th day of each month beginning on March 15, 2016 through August 15, 2016 (with
respect to January 2016 through June 2016). Lessee will then make a monthly 2016 Base Rent payment of $341,748 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 is 30 days after approval of Lessee’s first 2016 Regulatory
Order. Lessee will then make a monthly 2016 Base Rent payment of $361,855 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 is 30 days after approval of Lessee’s second 2016 Regulatory Order. 

	###	Lessee will make a monthly 2017 Base Rent payment of $327,983 on the 15th day of each month beginning on March 15, 2017 through May 15, 2017 (with respect
to January 2017 through March 2017). Lessee will then make a 2017 Base Rent payment of $354,731 on the 15th day of each month beginning on June 15, 2017 through February 15, 2018 (with
respect to April 2017 through December 2017), with the increase in monthly Base Rent reflecting 2016 Stub-Year CapEx and commencing April 1, 2017, which is 30 days after approval of Lessee’s first 2017 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	% 

  
 2 

 ERCOT TRANSMISSION LEASE 

 Annual Percentage Rent Breakpoints: 

 

					
	 2014
	  	$	484,276	  
	 2015
	  	$	2,219,582	  
	 2016
	  	$	3,956,809	* 
	 2017
	  	$	4,204,836	** 
	 2018
	  	$	4,062,820	  
	 2019
	  	$	3,912,353	  
	 2020
	  	$	3,771,276	  
	 2021
	  	$	3,637,213	  
	 2022
	  	$	3,506,636	  

  

	*	The 2016 Annual Percentage Rent Breakpoint reflects the assumptions set forth above regarding the timing of the first 2016 Regulatory Order and the second 2016 Regulatory Order, as well as the amount of First 2016 CapEx
and Second 2016 CapEx. 

	**	The 2017 Annual Percentage Rent Breakpoint reflects the assumptions set forth above regarding the timing of the first 2016 Regulatory Order, the second 2016 Regulatory Order, and the first 2017 Regulatory Order, as well
as the amount of First 2016 CapEx, Second 2016 CapEx, and 2016 Stub-Year CapEx. 

 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 1, 2016: 3.6%
		  	between June 1, 2016 and October 1, 2016: 4.4%
		  	starting October 1, 2016: 4.5%
		
	Term of Rent Supplement:	  	Expires 12/31/22

  
 3 

 ERCOT TRANSMISSION LEASE 

 The Parties have executed this Fourth 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

  
 4 

 ERCOT TRANSMISSION LEASE

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