Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

CONSENT AND FOURTH AMENDMENT 

TO NOTE PURCHASE AGREEMENT 

This CONSENT AND FOURTH AMENDMENT TO NOTE PURCHASE AGREEMENT, dated as of December 21, 2018 (this “Amendment”) amends
that certain Amended and Restated Note Purchase Agreement, dated as of July 13, 2010 (as amended, restated, amended and restated or otherwise modified prior to the date hereof, the “Agreement”), by and among TRANSMISSION AND
DISTRIBUTION COMPANY, L.L.C. (the “Company”) and the holders of the notes issued thereunder (“Holders”). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms
in the Agreement (as amended by this Amendment) and the rules of interpretation set forth therein shall apply to this Amendment. 
 RECITALS

 WHEREAS, the Company and the Holders are parties to the Agreement; 

WHEREAS, InfraREIT Partners, LP (“InfraREIT Partners”), a Delaware limited partnership and the parent of the Company,
and InfraREIT, Inc. (“InfraREIT”), the general partner of InfraREIT Partners, have entered into that certain Agreement and Plan of Merger (the “Merger Agreement”), with Oncor Electric Delivery Company LLC
(“Oncor”), 1912 Merger Sub LLC (“Merger Sub”) and Oncor T&D Partners, LP (“Merger Partnership”), pursuant to which the parties thereto will effect a business combination through (i) a
merger of InfraREIT with and into Merger Sub, with Merger Sub being the surviving entity (the “InfraREIT Merger”), (ii) a contribution (the “Affiliate Contribution”) by such surviving entity of a 1%
limited partnership interest in InfraREIT Partners to an affiliate of Oncor, and (iii) immediately following the consummation of the InfraREIT Merger and the Affiliate Contribution, a merger of Merger Partnership with and into InfraREIT
Partners, with InfraREIT Partners being the surviving entity (together with the InfraREIT Merger, the “Mergers”), in each case, on the terms and subject to the conditions set forth in the Merger Agreement;  

WHEREAS, concurrently with the execution and delivery of the Merger Agreement, Sharyland Distribution & Transmission Services, L.L.C.
(“SDTS”), a Texas limited liability company and subsidiary of the Company entered into an Agreement and Plan of Merger (the “Asset Exchange Agreement”), with Sharyland Utilities, L.P. (“Sharyland”) and
Oncor, upon the terms and subject to the conditions of which, among other things, (i) Sharyland will allocate to and vest in SDTS, and SDTS will accept and assume, through the joint survivor merger of Sharyland and SDTS provided for in the
Asset Exchange Agreement (the “SU-SDTS Merger”), the NTX Package (as defined in the Asset Exchange Agreement) and (ii) SDTS will allocate to and vest in Sharyland, and Sharyland will
accept and assume, through the SU-SDTS Merger, the STX Package (as defined in the Asset Exchange Agreement); 

WHEREAS, SDTS owns certain real property and other assets that it leases to Sharyland pursuant to the SU/SDTS Leases (as defined in the Asset
Exchange Agreement); 

 WHEREAS, concurrently with the execution and delivery of the Asset Exchange Agreement,
InfraREIT, InfraREIT Partners and SDTS entered into an Omnibus Termination Agreement (the “Omnibus Termination Agreement”), with Hunt Consolidated, Inc., Hunt Transmission Services, L.L.C., Electricity Participant Partnership,
L.L.C. and Hunt Utility Services, LLC (collectively, “Hunt”) and Sharyland, upon the terms and subject to the conditions of which, among other things, the Management Agreement (as defined in the Omnibus Termination Agreement) and
the SU/SDTS Leases will be terminated (collectively, the “Contract Terminations”) in exchange for the payment of the Termination Amount (as defined in the Omnibus Termination Agreement) effective immediately upon the Closing (as
defined in the Asset Exchange Agreement); 
 WHEREAS, Sharyland holds limited liability company interests in, and is the managing member of,
SDTS; 
 WHEREAS, pursuant to the Asset Exchange Agreement, immediately prior to the Effective Time (as defined in the Asset Exchange
Agreement), all of Sharyland’s equity interests in SDTS will be cancelled (the “Equity Cancellation” , including all of its limited liability company interests and related economic interests in SDTS, causing SDTS to become a
wholly owned, indirect subsidiary of InfraREIT Partners; 
 WHEREAS, Sharyland and SU Investment Partners, L.P., a Texas limited
partnership, have entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with Sempra Texas Utilities Holdings I, LLC (“Purchaser”) and Sempra Energy pursuant to which, immediately
following the Equity Cancellation, the SU-SDTS Merger and the Mergers, Purchaser will purchase a 50% limited partnership interest in Sharyland Holdings, L.P., which will own a 100% interest in Sharyland
(together with the Contract Terminations, the Mergers, the SU-SDTS Merger, the Equity Cancellation and all other transactions contemplated by the Merger Agreement, the Asset Exchange Agreement and the
Securities Purchase Agreement, collectively, the “Transactions”);  
 WHEREAS, pursuant to the Agreement, the
Company is required to, among other things, comply with various requirements, restrictions and limitations relating to the SU/SDTS Leases, Sharyland (as a Qualified Lessee in respect of the SU/SDTS Leases), the ownership of Sharyland and other
related provisions (the “Subject Provisions”); and 
 WHEREAS, the Company has requested, and the Holders party hereto have
agreed subject to the terms and conditions hereof to, notwithstanding anything to the contrary in the Financing Documents in connection with the Transactions, amend the Agreement to remove the Subject Provisions, as more particularly set forth in
Annex A hereto. 
 NOW THEREFORE, in consideration of the mutual agreement herein contained and other good and valuable consideration,
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

  
 2 

 1. Consent under Agreement. In accordance with Section 17.1 of the Agreement,
the Holders party hereto hereby consent to the Transactions and the execution and delivery of the documents referenced herein and agree that no breach, violation, Default or Event of Default shall be deemed to arise, nor shall any make-whole or
mandatory prepayment be due and payable, under the Financing Documents as a result of the Transactions closing on or prior to the Closing Date (as defined in the Merger Agreement); provided that, the consent contained in this Section 1 shall
only be relied upon for the specific purpose set forth herein and shall not constitute a custom or course of dealing among the parties hereto, nor shall it be deemed a consent to or waiver of any other Default or Event of Default. 

2. Amendments to the Agreement. The Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as
the following example: stricken text ) and to add the bold underlined text (indicated textually in the same manner in the following example: underlined text), as set forth in the Agreement as attached hereto as Annex
A, which amendments shall become effective upon (a) the execution and delivery of the Closing Certificate (attached hereto as Exhibit A) by the Company to the Holders (which shall be deemed to occur upon posting thereof on IntraLinks or similar
website to which Holders have access) and (b) payment by the Company to each holder of Notes its pro rata share of an aggregate amendment fee for all Notes equal to $153,125.00. 

3. Conditions to the Effective Date. This Amendment shall become effective as of the first date upon which each of the following
conditions have been satisfied: 
  

	 	a.	 executed counterparts of this Amendment, duly executed by the Company and the Holders party hereto, shall have
been delivered to the Holders party hereto; 

  

	 	b.	 the representations and warranties of the Company set forth in Section 4 hereof are true and correct in
all material respects on and as of the date hereof, except to the extent that such representation or warranty expressly relates to an earlier date (in which event such representation or warranty was true and correct in all material respects as of
such earlier date); 

  

	 	c.	 the fees and expenses of Chapman and Cutler LLP, counsel to the Holders, shall have been paid by the Company,
in connection with the negotiation, preparation, approval, execution and delivery of this Amendment in accordance with the terms of the Agreement and to the extent a written invoice with respect thereto (with related backup documentation) shall have
been delivered to the Company at least 2 business days prior thereto; and 

  

	 	d.	 each Holder shall have received copies of substantially similar consent and amendment agreements relating to
(i) the Amended and Restated Note Purchase Agreement dated July 13, 2010 between SDTS and the purchasers listed in Schedule A attached thereto and (ii) the Amended and Restated Note Purchase Agreement dated September 14, 2010
between SDTS and the purchasers listed in Schedule A attached thereto. 

  
 3 

 4. Representations and Warranties of the Company. In order to induce the Holders
party hereto to enter into this Amendment, the Company hereby represents and warrants that: 
  

	 	a.	 The Company has the requisite power and authority to execute, deliver and carry out the terms and provisions of
this Amendment and has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of this Amendment. The Company has duly executed and delivered this Amendment, and this Amendment (and each
Financing Document as amended by the Amendment) constitutes the legal, valid and binding obligation of the Company enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 

 

	 	b.	 The execution, delivery and performance by the Company of this Amendment do not and will not
(i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease,
corporate charter or limited partnership or limited liability company agreement, or any other agreement or instrument to which the Company is bound or by which the Company or any of its properties may be bound or affected, (ii) conflict with or
result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or (iii) violate any provision of any statute or other rule
or regulation of any Governmental Authority applicable to the Company, which in the case of any of the foregoing clauses (i) through (iii), individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

  

	 	c.	 No consent, approval or authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance by the Company of this Amendment other than those that have been made or obtained prior to the date hereof. 

 

	 	d.	 No Default or Event of Default has occurred and is continuing on the date hereof or after giving effect to this
Amendment. 

  

	 	e.	 Following the effectiveness of this Amendment, the consummation of the Transactions will not result in any
breach, violation, Default or Event of Default under the Financing Documents and the resulting termination of REIT status of InfraREIT will not result in a Material Adverse Effect. 

 

	 	f.	 This Amendment and the other documents, certificates or other writings delivered to the Holders by or on behalf
of the Company, in connection with this Amendment and the Transactions, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact 

  
 4 

	 	
necessary to make the statements therein not misleading in light of the circumstance under which they were made. The projections and pro forma financial information contained in the materials
referenced above are based upon good faith estimates and assumptions believed by management of the Company to be reasonable at the time made and on the date hereof, it being recognized by each Holder that such financial information as it relates to
future events is not to be viewed as fact and that actual results during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount. 

 

	 	g.	 The security interests in the Collateral granted to the Collateral Agent (for the benefit of the Secured
Parties) pursuant to the Financing Documents: (a) constitute as to personal property included in the Collateral and, with respect to subsequently acquired personal property included in the Collateral, will constitute, a perfected security
interest and Lien under each applicable Uniform Commercial Code, and (b) are, and, with respect to such subsequently acquired property, will be, as to Collateral perfected under each applicable Uniform Commercial Code, superior and prior to the
rights of all third Persons now existing or hereafter arising whether by way of mortgage, lien, security interests, encumbrance, assignment or otherwise, except for Permitted Liens. All action as is necessary has been taken to establish and perfect
the Collateral Agent’s rights in and to, and the first lien priority of its Lien on, the Collateral, including any recording, filing, registration, delivery to the Collateral Agent, giving of notice or other similar action.

 5. Continuing Effect of Financing Documents. Except as expressly set forth herein, this Amendment shall not
constitute an amendment or waiver of any provision of any Financing Document and shall not be construed as an amendment, waiver or consent to any further or future action on the part of the Company that would require an amendment, waiver or consent
under any Financing Document. Except as expressly amended hereby, the provisions of the Financing Documents are and shall remain in full force and effect. This Amendment shall be deemed a Financing Document for purposes of the Agreement. 

6. Fees. In accordance with Section 15.1 of the Agreement, the Company shall pay the fees, charges and disbursements of special
counsel to the Holders in connection with this Amendment. 
 7. Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by
all the parties hereto shall be lodged with the Company and the Holders party hereto. Delivery of an executed counterpart of a signature page to this Amendment by telecopy or electronic transmission shall be effective as the delivery of a manually
executed counterpart of this Amendment. 

  
 5 

 8. Severability. If any provision of this Amendment is held to be illegal, invalid or
unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 9. Integration. This Amendment and the other
Financing Documents represent the agreement of the Company and the Holders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Company or any Holder relative to the subject matter
hereof not expressly set forth or referred to herein or in the other Financing Documents. 
 10. GOVERNING LAW. THIS AMENDMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

11. Interpretation. The execution and delivery of this Amendment and performance of the Financing Documents shall not, except as
expressly provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the Holders under, the Financing Documents. 

[Signatures on Following Pages] 

  
 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written. 
  

			
	COMPANY
	
	TRANSMISSION AND DISTRIBUTION COMPANY, L.L.C.
		
	By:	 	 /s/ Brant Meleski

	Name:	 	Brant Meleski
	Title:	 	Senior Vice President and
		 	Chief Financial Officer

 Signature Page to Consent and Fourth Amendment to Note Purchase Agreement 

 
					
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, as a Holder
		
	By:	 	 /s/ Wendy Carlson

	Name:	 	Wendy Carlson
	Title:	 	Vice President
	
	PRUCO LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Wendy Carlson

	Name:	 	Wendy Carlson
	Title:	 	Vice President
	
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY, as a Holder
		
	By:	 	PGIM, as investment manager
			
		 	By:	 	 /s/ Wendy Carlson

		 	Name:	 	Wendy Carlson
		 	Title:	 	Vice President

 Signature Page to Consent and Fourth Amendment to Note Purchase Agreement 

 EXHBIT A 

Closing Certificate 
 [see
attached] 

 CLOSING CERTIFICATE 

[     ], 2019 

Reference is made to: 
  

	 	(A)	 that certain Amended and Restated Note Purchase Agreement dated as of July 13, 2010 (as amended, restated,
supplemented and otherwise modified from time to time, the “TDC NPA”) among Transmission and Distribution Company, L.L.C. (the “Company”) and the holders of the notes issued thereunder (the
“Holders”); and 

  

	 	(B)	 that certain Consent and Fourth Amendment to the TDC NPA (the “Amendment”), dated as of
December 21, 2018, among the Company and the Holders party thereto (capitalized terms used herein but not otherwise defined shall have the respective meanings provided such terms in the Amendment or the TDC NPA, as applicable).

 The undersigned,
[                    ], an authorized signatory of the Company, certifies on behalf of the Company, in such capacity and not individually, that the
Equity Cancellation has occurred simultaneously with delivery of this Closing Certificate and the other Transactions will occur on the date hereof substantially in accordance with the terms of the Merger Agreement and the Asset Exchange Agreement
(each, in the form publicly filed on or prior to the date of the Amendment), but without giving effect to any amendments, waivers or consents by the Company that are materially adverse to the interests of the Holders (without the consent of the
Required Holders, not to be unreasonably withheld or delayed). Accordingly, the amendments to the TDC NPA set forth in Section 2 of the Amendment are effective as of the date hereof. 

[SIGNATURE PAGE TO FOLLOW] 

 IN WITNESS WHEREOF, the undersigned has caused this Closing Certificate to be duly executed
and delivered by its proper and duly authorized officer as of the day and year first above written. 
  

			
	TRANSMISSION AND DISTRIBUTION COMPANY, L.L.C.
		
	By:	 	      

	Name:
	Title:

 Signature Page to Closing Certificate under Consent and Fourth Amendment to Note Purchase Agreement 

 Annex A 

Amended and Restated Note Purchase Agreement, as amended by the Fourth Amendment 

[See attached.] 

 ANNEX A 

 
  

 
 TRANSMISSION
AND DISTRIBUTION COMPANY, L.L.C. 
 $25,000,000 

8.5% Senior Notes due December 30, 2020 
  

 

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT 

 
  

Dated July 13, 2010 

AS AMENDED BY: 

FIRST AMENDMENT DATED AS OF JUNE 9, 2011 

SECOND AMENDMENT DATED AS OF DECEMBER 10, 2014

 THIRD AMENDMENT DATED
AS OF FEBRUARYTHIRD AMENDMENT DATED AS OF 

FEBRUARY 19, 2016 

FOURTH AMENDMENT DATED AS OF
[●] 
  
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
			
	 SECTION 1.
	 	 AUTHORIZATION OF NOTES
	  	 	2	 
			
	 SECTION 2.
	 	 SALE AND PURCHASE OF NOTES
	  	 	2	 
			
	 SECTION 3.
	 	 CLOSING
	  	 	2	 
			
	 SECTION 4.
	 	 CONDITIONS TO CLOSING
	  	 	3	 
			
	 Section 4.1.
	 	 Representations and Warranties
	  	 	3	 
	 Section 4.2.
	 	 Performance; No Default
	  	 	3	 
	 Section 4.3.
	 	 Compliance Certificates
	  	 	3	 
	 Section 4.4.
	 	 Opinions of Counsel
	  	 	3	 
	 Section 4.5.
	 	 Purchase Permitted By Applicable Law, Etc
	  	 	3	 
	 Section 4.6.
	 	 Sale of Notes
	  	 	4	 
	 Section 4.7.
	 	 Payment of Special Counsel and Other Fees and Expenses
	  	 	4	 
	 Section 4.8.
	 	 Private Placement Number
	  	 	4	 
	 Section 4.9.
	 	 Changes in Structure
	  	 	4	 
	 Section 4.10.
	 	 Funding Instructions
	  	 	4	 
	 Section 4.11.
	 	 Proceedings and Documents
	  	 	4	 
	 Section 4.12.
	 	 Security Agreement, Etc
	  	 	5	 
	 Section 4.13.
	 	 UCC Searches; and Litigation Searches
	  	 	6	 
	 Section 4.14.
	 	 Financial Statements
	  	 	6	 
	 Section 4.15.
	 	 Consents and Approvals
	  	 	6	 
	 Section 4.16.
	 	 Debt Service Reserve Account
	  	 	6	 
			
	 SECTION 5.
	 	 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	6	 
			
	 Section 5.1.
	 	 Organization; Power and Authority
	  	 	6	 
	 Section 5.2.
	 	 Authorization, Etc
	  	 	7	 
	 Section 5.3.
	 	 Disclosure
	  	 	7	 
	 Section 5.4.
	 	 Organization and Ownership of Interests in the Company
	  	 	7	 
	 Section 5.5.
	 	 Financial Statements; Material Liabilities
	  	 	7	 
	 Section 5.6.
	 	 Compliance with Laws, Other Instruments, Etc
	  	 	8	 
	 Section 5.7.
	 	 Governmental Authorizations, Etc
	  	 	8	 
	 Section 5.8.
	 	 Litigation; Observance of Agreements, Statutes and Orders
	  	 	8	 
	 Section 5.9.
	 	 Taxes
	  	 	8	 
	 Section 5.10.
	 	 Permits; Material Agreements
	  	 	8	 
	 Section 5.11.
	 	 Compliance with ERISA
	  	 	9	 
	 Section 5.12.
	 	 Private Offering by the Company
	  	 	9	 
	 Section 5.13.
	 	 Use of Proceeds; Margin Regulations
	  	 	10	 
	 Section 5.14.
	 	 Existing Indebtedness; Future Liens
	  	 	10	 
	 Section 5.15.
	 	 Foreign Assets Control Regulations, Etc
	  	 	10	 
	 Section 5.16.
	 	 Status under Certain Statutes
	  	 	11	 
	 Section 5.17.
	 	 Collateral
	  	 	11	 

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	Page	 
			
	 SECTION 6.
	 	 REPRESENTATIONS OF THE PURCHASERS
	  	 	11	 
			
	 Section 6.1.
	 	 Purchase for Investment
	  	 	11	 
	 Section 6.2.
	 	 Source of Funds
	  	 	11	 
			
	 SECTION 7.
	 	 INFORMATION
	  	 	13	 
			
	 Section 7.1.
	 	 Financial and Business Information
	  	 	13	 
	 Section 7.2.
	 	 Officer’s Certificate
	  	 	15	 
	 Section 7.3.
	 	 Visitation
	  	 	16	 
			
	 SECTION 8.
	 	 PAYMENT AND PREPAYMENT OF THE NOTES
	  	 	16	 
			
	 Section 8.1.
	 	 Amortization; Maturity
	  	 	16	 
	 Section 8.2.
	 	 Optional Prepayments with Yield-Maintenance Amount
	  	 	16	 
	 Section 8.3.
	 	 Allocation of Partial Prepayments
	  	 	17	 
	 Section 8.4.
	 	 Maturity; Surrender, Etc
	  	 	17	 
	 Section 8.5.
	 	 Purchase of Notes
	  	 	17	 
	 Section 8.6.
	 	 Yield-Maintenance Amount
	  	 	17	 
			
	 SECTION 9.
	 	 AFFIRMATIVE COVENANTS
	  	 	19	 
			
	 Section 9.1.
	 	 Compliance with Law
	  	 	19	 
	 Section 9.2.
	 	 Payment of Taxes and Claims
	  	 	19	 
	 Section 9.3.
	 	 Existence, Etc
	  	 	19	 
	 Section 9.4.
	 	 Books and Records
	  	 	20	 
	 Section 9.5.
	 	 Collateral; Further Assurances
	  	 	20	 
	 Section 9.6.
	 	 Financial Ratios
	  	 	20	 
	 Section 9.7.
	 	 Debt Service Reserve Account
	  	 	20	 
			
	 SECTION 10.
	 	 NEGATIVE COVENANTS
	  	 	20	 
			
	 Section 10.1.
	 	 Transactions with Affiliates
	  	 	20	 
	 Section 10.2.
	 	 Merger, Consolidation, Etc
	  	 	21	 
	 Section 10.3.
	 	 Line of Business
	  	 	21	 
	 Section 10.4.
	 	 Terrorism Sanctions Regulations
	  	 	21	 
	 Section 10.5.
	 	 Liens
	  	 	22	 
	 Section 10.6.
	 	 Indebtedness
	  	 	22	 
	 Section 10.7.
	 	 Loans, Advances, Investments and Contingent Liabilities
	  	 	23	 
	 Section 10.8.
	 	 No Subsidiaries
	  	 	23	 
	 Section 10.9.
	 	 Restricted Payments
	  	 	23	 
	 Section 10.10.
	 	 Amendments to Organizational Documents; Exercise of Rights
	  	 	23	 
	 Section 10.11.
	 	 ERISA Compliance
	  	 	24	 
	 Section 10.12.
	 	 Regulation
	  	 	24	 
	 Section 10.13.
	 	 Additional Financial Covenants
	  	 	25	 

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	Page	 
			
	 SECTION 11.
	 	 EVENTS OF DEFAULT
	  	 	25	 
			
	 SECTION 12.
	 	 REMEDIES ON DEFAULT, ETC
	  	 	28	 
			
	 Section 12.1.
	 	 Acceleration
	  	 	28	 
	 Section 12.2.
	 	 Other Remedies
	  	 	28	 
	 Section 12.3.
	 	 Rescission
	  	 	29	 
	 Section 12.4.
	 	 No Waivers or Election of Remedies, Expenses, Etc
	  	 	29	 
			
	 SECTION 13.
	 	 REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	  	 	29	 
			
	 Section 13.1.
	 	 Registration of Notes
	  	 	29	 
	 Section 13.2.
	 	 Transfer and Exchange of Notes
	  	 	30	 
	 Section 13.3.
	 	 Replacement of Notes
	  	 	31	 
			
	 SECTION 14.
	 	 PAYMENTS ON NOTES
	  	 	31	 
			
	 Section 14.1.
	 	 Place of Payment
	  	 	31	 
	 Section 14.2.
	 	 Home Office Payment
	  	 	31	 
			
	 SECTION 15.
	 	 EXPENSES, ETC
	  	 	32	 
			
	 Section 15.1.
	 	 Transaction Expenses
	  	 	32	 
	 Section 15.2.
	 	 Survival
	  	 	32	 
			
	 SECTION 16.
	 	 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
	  	 	32	 
			
	 SECTION 17.
	 	 AMENDMENT AND WAIVER
	  	 	33	 
			
	 Section 17.1.
	 	 Requirements
	  	 	33	 
	 Section 17.2.
	 	 Solicitation of Holders of Notes
	  	 	33	 
	 Section 17.3.
	 	 Binding Effect, Etc
	  	 	33	 
	 Section 17.4.
	 	 Notes Held by Company, Etc
	  	 	34	 
			
	 SECTION 18.
	 	 NOTICES
	  	 	34	 
			
	 SECTION 19.
	 	 REPRODUCTION OF DOCUMENTS
	  	 	34	 
			
	 SECTION 20.
	 	 CONFIDENTIAL INFORMATION
	  	 	35	 
			
	 SECTION 21.
	 	 SUBSTITUTION OF PURCHASER
	  	 	36	 
			
	 SECTION 22.
	 	 MISCELLANEOUS
	  	 	36	 
			
	 Section 22.1.
	 	 Successors and Assigns
	  	 	36	 
	 Section 22.2.
	 	 Payments Due on Non-Business Days
	  	 	36	 

  
 iii 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	Page	 
	 Section 22.3.
	 	 Accounting Terms
	  	 	36	 
	 Section 22.4.
	 	 Severability
	  	 	36	 
	 Section 22.5.
	 	 Construction, Etc
	  	 	37	 
	 Section 22.6.
	 	 Counterparts
	  	 	37	 
	 Section 22.7.
	 	 Governing Law
	  	 	37	 
	 Section 22.8.
	 	 Jurisdiction and Process; Waiver of Jury Trial
	  	 	37	 
	 Section 22.9.
	 	 Transaction References
	  	 	38	 

  
 iv 

					
	SCHEDULE A	  	—	  	INFORMATION RELATING TO PURCHASERS
			
	SCHEDULE B	  	—	  	DEFINED TERMS
			
	Schedule 5.3	  	—	  	Disclosure Materials
			
	Schedule 5.4	  	—	  	Ownership of the Company and Subsidiaries; Officers
			
	Schedule 5.5	  	—	  	Financial Statements
			
	Schedule 5.7	  	—	  	Government Authorizations
			
	Schedule 5.10	  	—	  	Required Permits
			
	Schedule 5.14	  	—	  	Indebtedness
			
	Schedule 8.1	  	—	  	Principal Amortization Schedule
			
	Schedule 10.6	  	—	  	Existing Indebtedness
			
	Exhibit 1	  	—	  	Form of 8.5% Senior Secured Note due December 30, 2020
			
	Exhibit 2	  	—	  	Form of Subordination Terms

 Security Documents 
  

			
	Exhibit S-1	  	Form of Security Agreement
		
	Exhibit S-2	  	Form of Pledge Agreement
		
	Exhibit S-3	  	Form of Depositary Agreement
		
	Exhibit S-4	  	Form of Deposit Account Control Agreement
		
	Exhibit S-5	  	Form of Collateral Agency Agreement

  
 v 

 8.5% Senior Notes due December 30, 2020 

July 13, 2010 
 TO
EACH OF THE PURCHASERS LISTED IN 

Schedule A Hereto: 

Ladies and Gentlemen: 
 Transmission and
Distribution Company, L.L.C., a Texas limited liability company (the “Company”), agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and, collectively, the
“Purchasers”) as follows (this “Agreement”): 
 RECITALS 

WHEREAS, Hunt Transmission Services, L.L.C. (“Hunt”) entered into an Agreement and Plan of Merger, dated as of
December 17, 2009 (the “Acquisition Agreement”), pursuant to which HTS Acquisition Sub., Inc, a Delaware corporation and a wholly owned indirect subsidiary of Hunt (“Merger Sub”) merged with and into Cap Rock
Holding Corporation (“Holding”), a Delaware corporation, which owns directly or indirectly all of the capital stock of Cap Rock Intermediate, Inc., a Delaware corporation (the acquisition and the transactions related therein, the
“Merger”); 
 WHEREAS, in connection with the Merger, Merger Sub entered into that certain Note Purchase Agreement, dated
as of July 13, 2010 (the “Acquisition Date”), among Merger Sub, as issuer, and the Purchasers, as purchasers thereunder, with respect to the issuance of 8.5% Senior Notes due September 30, 2020, in the aggregate principal
amount of $25,000,000 (the “Initial NPA”); 
 WHEREAS, Holding as the survivor of the merger with Merger Sub, succeeded to
and assumed by operation of law all of the rights, duties, obligations and liabilities of Merger Sub under the Initial NPA, and Holding has confirmed its obligations under the Initial NPA pursuant to that certain Ratification Agreement, dated the
Acquisition Date, executed by Holding in favor of the Purchasers; 
 WHEREAS, Cap Rock Intermediate, Inc., pursuant to and in accordance
with the Plan of Conversion, dated as of the Acquisition Date, was converted from a Delaware corporation to a Delaware limited liability company, as so converted Cap Rock Intermediate LLC (“CR Intermediate”); 

WHEREAS, pursuant to the Assumption Agreement, dated as of the Acquisition Date, between Holding and CR Intermediate, CR Intermediate, with
the consent of the Administrative Agent and the Purchasers, assumed all of the rights, duties, obligations and liabilities of Holding under the Initial NPA; 

 WHEREAS, pursuant to the Agreement and Plan of Merger, dated as of the Acquisition Date,
between CR Intermediate and the Company, CR Intermediate was merged into the Company with the Company being the surviving corporation and succeeding by operation of law to the Initial NPA; and 

WHEREAS, subject to and on the terms and conditions set forth herein, the parties hereto wish to amend and restate the Initial NPA in its
entirety as set forth herein, with the Initial NPA as so amended and restated being hereinafter referred to as the “Agreement”; 

NOW, THEREFORE, in consideration of the premises and agreements hereinafter set forth, the parties hereto agree as follows: 

SECTION 1.    AUTHORIZATION OF NOTES. 

The Company will authorize the issue and sale of $25,000,000 aggregate principal amount of its 8.5% Senior Notes due December 30, 2020
(the “Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 13). The Notes shall be substantially in the form set out in Exhibit 1.
Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached
to this Agreement. 
 SECTION 2.    SALE AND PURCHASE OF NOTES. 

Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from
the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal
amount thereof. The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation
by any other Purchaser hereunder. 
 SECTION 3.    CLOSING. 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Bingham McCutchen, 399 Park Avenue, New
York, NY, at 11:00 a.m., New York time, at a closing (the “Closing”) on July 13, 2010 or on such other Business Day thereafter on or prior to July 16, 2010 as may be agreed upon by the Company and the Purchasers. At
the Closing the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least $1,000,000 as such Purchaser may request) dated the Closing
Date and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of
immediately available funds for the account of the Company to TDC BofA Account, account number 4426343347 at Bank of America, 915 Main Street, Dallas, TX 75202, ABA: 026009593 or to such other account as established in a flow of funds memorandum
that is agreed upon between the Company and the Purchasers. If at the Closing the Company shall fail to tender such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in
Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such
Purchaser may have by reason of such failure or such nonfulfillment. 

  
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 SECTION 4.    CONDITIONS TO CLOSING. 

Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to
the satisfaction of each Purchaser, prior to or at the Closing, of the following conditions: 

Section 4.1.    Representations and Warranties. The representations and warranties of the
Company in this Agreement shall be correct when made and at the time of the Closing. 

Section 4.2.    Performance; No Default. The Company shall have performed and complied
with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as
contemplated by Section 5.13) no Default or Event of Default shall have occurred and be continuing. 

Section 4.3.    Compliance Certificates. 

(a)    Company’s Closing Certificates. The Company shall have delivered to each Purchaser an officer’s
certificate, dated the Closing Date, certifying that (i) the conditions specified in Sections 4.1 and 4.2 have been fulfilled, and (ii) that each of the other conditions precedent to the occurrence of the Closing has been satisfied.

 (b)    Company’s Authority Certificate. The Company shall have delivered to each Purchaser a certificate
of its secretary, dated the Closing Date, certifying as to the resolutions attached thereto and other corporate proceedings by the Company relating to the authorization, execution and delivery of the Notes and this Agreement and the other Financing
Documents to which it is a party. 
 Section 4.4.    Opinions of Counsel. Such
Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a)(i) from Mayer Brown LLP, counsel for the Company and the Member, covering such matters incident to the transactions
contemplated hereby as such Purchaser or its counsel may reasonably request and (ii) from Sutherland, Asbill & Brennan LLP, special counsel for the Company and the Member, covering Federal and Texas regulatory matters (and the Company
hereby instructs its counsel to deliver such opinions to the Purchasers and the Secured Parties), and (b) from Bingham McCutchen LLP, in connection with such transactions, in form and substance satisfactory to the Purchasers and covering such
other matters incident to such transactions as the Purchasers may reasonably request. 

Section 4.5.    Purchase Permitted By Applicable Law, Etc. On the date of the Closing
such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law)
permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any 

  
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applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax,
penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as
to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted. 

Section 4.6.    Sale of Notes. Contemporaneously with the Closing, (a) the Company
shall sell to each Purchaser and each Purchaser shall purchase the Notes to be purchased by it at the Closing as specified in Schedule A, (b) the transactions contemplated by the SDTS 2010 Note Agreement shall
be consummated and (c) the transactions contemplated by the RBC Agreement shall be consummated. 

Section 4.7.    Payment of Special Counsel and Other Fees and Expenses. Without limiting
the provisions of Section 15.1, the Company shall have paid on or before the Closing: (a) the fees, charges and disbursements of the Purchasers’ special counsel, Bingham McCutchen LLP, and the Purchasers’
Texas counsel to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing and (b) all other fees, including to the extent not paid pursuant to the Initial NPA a structuring fee
in the amount of $250,000 to Prudential (the “Structuring Fee”), and out-of-pocket costs and expenses (including legal fees and expenses and consultant
fees and expenses) and other compensation contemplated hereby or by the other Financing Documents, or pursuant to separate letter agreements, payable to the Purchasers. 

Section 4.8.    Private Placement Number. A Private Placement Number issued by
Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes. 

Section 4.9.    Changes in Structure. The Cap Rock Transaction shall be consummated prior
to or contemporaneously with the Closing. The Company shall not have changed its jurisdiction of formation or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time
following the date of the most recent financial statements referred to in Schedule 5.5, except in connection with the Cap Rock Transaction. 

Section 4.10.    Funding Instructions. At least one Business Day prior to the date of the
Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the name and address of the
transferee bank, (ii) such transferee bank’s ABA number and (iii) the account name and number into which the purchase price for the Notes is to be deposited. 

Section 4.11.    Proceedings and Documents. Each Purchaser shall have received the
following, each to be (i) dated the Closing Date unless otherwise indicated, and (ii) in form and substance satisfactory to the Purchasers: 

(a)    The Notes to be purchased by the Purchasers; 

  
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 (b)    This Agreement and each other Financing Document, duly executed,
authorized and delivered by each party thereto; 
 (c)    The certificates of formation of the Company and the Member,
each certified as of a recent date by the Secretary of State of the State of Texas or the State of Delaware, as appropriate, and by such Person’s secretary or other authorized officer; 

(d)    The organizational documents of the Company and the Member, certified by such Person’s secretary or other
authorized officer; 
 (e)    With respect to the Company and the Member, an incumbency certificate signed by the
secretary and one other officer of such Person, certifying as to the names, titles and true signatures of the officers of such Person authorized to sign this Agreement, the Notes, the other Financing Documents to which such Person is a party and
other documents to be delivered hereunder or thereunder; 
 (f)    A certificate of the secretary of the Company and the
Member attaching resolutions of its management committee or other governing body evidencing approval of the transactions contemplated by this Agreement and the other Financing Documents to which such Person is a party and, with respect to the
Company, the issuance of the Notes, and in each case, the execution, delivery and performance thereof, and authorizing certain officers to execute and deliver the same, and certifying that such resolutions were duly and validly adopted and have not
since been amended, revoked or rescinded; 
 (g)    Good standing certificates as to the Company and the Member from all
relevant jurisdictions; 
 (h)    Evidence of the filing and acceptance of financing statements which name the Company,
as debtor, and the Collateral Agent, as secured party, in all applicable offices, together with copies of such financing statements; 

(i)    A schedule of all Required Permits, together with copies thereof certified by officers of the Company as being true,
correct and complete, in full force and effect and not subject to any appeal or further proceeding; 
 (j)    Copies of
the documents delivered in connection with the consummation of the transactions contemplated by the SDTS 2010 Note Agreement and the RBC Agreement; and 

(k)    Such additional documents or certificates with respect to such legal matters or limited liability company, general
partnership or other proceedings related to the transactions contemplated hereby as may be reasonably requested by the Purchasers. 

  
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 Section 4.12.    Security Agreement,
Etc. The Obligations shall be secured by a perfected first priority security interest (subject to Permitted Liens) in the Collateral in favor of the Collateral Agent, for the benefit of the Secured Parties, and the Company will deliver or cause
to be delivered to the Purchasers and the Collateral Agent on the Closing Date the following, each of which shall be in full force and effect: 

(a)    A Security Agreement in the form of Exhibit S-1, duly executed by
each of the Company and the Collateral Agent (the “Security Agreement”); 
 (b)    An Assignment of
Membership Interest Pledge Agreement in the form of Exhibit S-2, duly executed by the Member in favor of the Collateral Agent (the “Pledge Agreement”); and 

(c)    A Depositary Agreement in the form of Exhibit S-4, duly executed by
each of the Company, the Collateral Agent and the Depositary (the “Depositary Agreement”) and the Deposit Account Control Agreement in the form of Exhibit S-4, duly executed by each of
the Company, the Collateral Agent, and the Deposit Account Bank (the “Deposit Account Control Agreement”); 

(d)    Such other documents, instruments and agreements any Purchaser may reasonably request to grant to the Collateral
Agent first priority (subject only to Permitted Liens) perfected Liens on the Collateral. 

Section 4.13.    UCC Searches; and Litigation Searches. The Collateral Agent and the
Purchasers shall have received UCC and litigation searches of the Company and the Member, which searches shall (i) confirm that no Liens other than Permitted Liens exist on the Collateral and that such Persons are not subject to any litigation,
and (ii) be otherwise in substance satisfactory to the Collateral Agent and the Purchasers. 

Section 4.14.    Financial Statements. The Purchasers shall have received unaudited
financial statements of the Company for the calendar quarter ended March 31, 2010. 

Section 4.15.    Consents and Approvals. All Required Permits and all governmental and
third party permits and regulatory and other approvals required to be in effect in connection with the issuance of the Notes hereunder have been obtained and are in effect, all applicable waiting periods have expired without any materially adverse
action being taken by any applicable authority, and copies of the documentation thereof shall have been delivered to each Purchaser. 

Section 4.16.    Debt Service Reserve Account. Contemporaneously with the Closing, the
Company shall deposit or cause to be deposited the Minimum Debt Service Reserve Requirement in the Debt Service Reserve Account. 

  
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 SECTION 5.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

The Company represents and warrants to each Purchaser that each of the representations and warranties made by SDTS in the SDTS 2010 Note
Agreement is true and correct on the date hereof. The Company represents and warrants to each Purchaser that: 

Section 5.1.    Organization; Power and Authority. The Company is a limited liability
company duly organized, validly existing and in good standing under the laws of its jurisdiction of formation, and is duly qualified and is in good standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the limited liability company power and authority to
transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the other Financing Documents to which it is a party and to perform the provisions hereof and thereof. 

Section 5.2.    Authorization, Etc. This Agreement and the other Financing Documents have
been duly authorized by all necessary limited liability company or limited partnership action on the part of the Company and the Member, and this Agreement and the other Financing Documents constitute, and upon execution and delivery thereof each
Note will constitute, a legal, valid and binding obligation of the Company and the Member, enforceable against it in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 Section 5.3.    Disclosure. This Agreement, the other Financing Documents and the
documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby, and the financial statements listed in Schedule 5.5 (this
Agreement, and such documents, certificates or other writings listed on Schedule 5.3, and such financial statements delivered to each Purchaser and listed on Schedule 5.5 being referred to,
collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the
circumstances under which they were made. The projections and pro forma financial information contained in the materials referenced above are based upon good faith estimates and assumptions believed by management of the Company to be reasonable
at the time made and on the Closing Date, it being recognized by each Purchaser that such financial information as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such financial
information may differ from the projected results set forth therein by a material amount. Except as disclosed in the Disclosure Documents, since December 31, 2009, there has been no change in the financial condition, operations, business,
properties or prospects of the Company except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect. There is no fact known to the Company that could reasonably be expected to have a
Material Adverse Effect that has not been set forth herein or in the Disclosure Documents. 

  
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 Section 5.4.    Organization and Ownership
of Interests in the Company. Schedule 5.4 contains a complete and correct list and description of (i) the Company’s jurisdiction of its organization and its ownership structure, (ii) the Company’s
Subsidiaries, and (iii) the Company’s senior officers. The Company has no Subsidiaries as of the Closing Date except as shown on Schedule 5.4. 

Section 5.5.    Financial Statements; Material Liabilities. The Company has delivered to
each Purchaser copies of the financial statements listed on Schedule 5.5. All of such financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated
financial positions of the Company as of the respective dates specified in such Schedule and the results of operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied
throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). The Company has no material liabilities that
are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents. 

Section 5.6.    Compliance with Laws, Other Instruments, Etc. The execution, delivery and
performance by the Company of this Agreement and the Notes and the other Financing Documents to which it is a party, do not and will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any
Lien in respect of any property of the Company under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or limited partnership or limited liability company agreement, or any other agreement or
instrument to which the Company is bound or by which the Company or any of its properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling
of any court, arbitrator or Governmental Authority applicable to the Company or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to such Person. 

Section 5.7.    Governmental Authorizations, Etc. Except as set forth on
Schedule 5.7, no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this
Agreement or the Notes or any of the other Financing Documents to which it is a party. 

Section 5.8.    Litigation; Observance of Agreements, Statutes and Orders. (a) There
are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or its property in any court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

(b)    The Company is not in default under any agreement or any order, judgment, decree or ruling of any court, arbitrator
or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws or the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect. 

  
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 Section 5.9.    Taxes. The Company has
filed all material tax returns that are required to have been filed (or timely requests for extensions have been filed, have been granted, and are not expired) in any jurisdiction, and has paid all taxes shown to be due and payable on such returns
and all other taxes and assessments levied upon it or its properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments
(i) the amount of which is not individually or in the aggregate material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which such Person has
established adequate reserves in accordance with GAAP. The Company knows of no basis for any tax or assessment that could reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company in
respect of Federal, state or other taxes for all fiscal periods are adequate. 

Section 5.10.    Permits; Material Agreements. The Company owns or possesses all
governmental and third party licenses, permits, franchises, authorizations, that are material to its business (collectively, the “Required Permits”), without known conflict with the rights of others. All Required Permits are listed in
Schedule 5.10. The agreements listed on Schedule 5.10 constitute and include all material contracts and agreements to which the Company is a party. Each such agreement is in full force and effect,
and constitutes the legal, valid and binding obligation of each party thereto as of the date hereof. 

Section 5.11.    Compliance with ERISA. (a) The Company and each ERISA Affiliate
have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor
any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition
has occurred or exists that could reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to Section 401(a)(29), 412 or 430(k) of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be
individually or in the aggregate material. 
 (b)    The ratio of (x) the aggregate actuarial value of assets as
defined in and determined in accordance with Code section 430(g)(3)(B) and adopted by the Company under each Plan (other than a Multiemployer Plan) to (y) the present value of the aggregate benefit liabilities under each such Plan, exceeds 80%,
as determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report. The terms “current
value” and “present value” have the meanings specified in section 3 of ERISA. 
 (c)    The
Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are
material. 

  
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 (d)    The expected postretirement benefit obligation (determined as of
the last day of the Company’s most recently ended calendar year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the
Code) of the Company is not material to it. 
 (e)    The execution and delivery of this Agreement and the issuance and
sale of the Notes hereunder will not involve any non-exempt prohibited transaction under section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Company to each Purchaser in the first sentence of this Section 5.11(e) is made in reliance upon and subject to the accuracy of such
Purchaser’s representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be purchased by such Purchaser. 

Section 5.12.    Private Offering by the Company. Neither the Company nor anyone acting
on its behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than the Purchasers and not more than five
other Institutional Investors, each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to
the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction. 

Section 5.13.    Use of Proceeds; Margin Regulations. The Company applied the proceeds of
the sale of the Notes to (i) make an equity contribution to SDTS, (ii) pay all fees, expenses and costs related to Closing, and (iii) to fund the Debt Service Reserve Account in accordance with the terms of the Depositary Agreement.
No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12
CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of
Regulation T of said Board (12 CFR 220). As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in Regulation U. 

Section 5.14.    Existing Indebtedness; Future Liens.
(a) Schedule 5.14 sets forth a complete and correct list of all outstanding Indebtedness of the Company as of March 31, 2010 (including a description of the obligors and obligees, principal amount outstanding and
collateral therefor, if any, and Guaranty thereof, if any). Since March 31, 2010, there has been no material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company. The
Company is not in default and no waiver of default is currently in effect, in the payment of any principal or interest on any of its Indebtedness and no event or condition exists with respect to any of its Indebtedness that would permit (or that
with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. 

  
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 (b)    The Company has not agreed or consented to cause or permit in the
future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not otherwise permitted by Section 10.5. 

(c)    The Company is not a party to, nor otherwise subject to any provision contained in, any instrument evidencing
Indebtedness of the Company, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of,
Indebtedness of the Company. 
 Section 5.15.    Foreign Assets Control Regulations,
Etc. (a) Neither the sale of the Notes by the Company hereunder nor the use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. 

(b)    Neither the Company nor the Member: (i) is a Person described or designated in the Specially Designated
Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (ii) engages in any dealings or transactions with any such Person. The Company and the Member are in compliance, in
all material respects, with the USA Patriot Act. 
 (c)    No part of the proceeds from the sale of the Notes hereunder
will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to the Company and the Member. 

Section 5.16.    Status under Certain Statutes. (a) The Company is not an
“investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or an “investment adviser” within the meaning of the Investment
Advisers Act of 1940, as amended. 
 (b)    The Company is not a “public utility” under the FPA and the
regulations of FERC thereunder. The execution, delivery and performance of the Company’s obligations under the Financing Documents requires no authorization of approval by, or notice to, and is not subject to the jurisdiction of, FERC
under the FPA. 
 (c)    The Company is not a “holding company” under PUHCA and the regulations of FERC
thereunder and will not become such a “holding company” as a result of the Cap Rock Transaction. 

(d)    Solely by virtue of the execution, delivery and performance of the Financing Documents, no Purchaser will become
subject to any of the provisions of the FPA, PUHCA (based on FERC’s currently effective definitions under PUHCA) or the Public Utility Regulatory Act of Texas, or to regulation under any such statute. 

  
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 Section 5.17.    Collateral.
Intentionally Omitted. 
 SECTION 6.    REPRESENTATIONS OF THE PURCHASERS. 

Section 6.1.    Purchase for Investment. Each Purchaser severally represents that it is an
“Accredited Investor” as defined in Rule 501 of Regulation D under the Securities Act. Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such
Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s property shall at all times be within such Purchaser’s control.
Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under
circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 

Section 6.2.    Source of Funds. Each Purchaser severally represents that at least one of
the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder: 

(a)    the Source is an “insurance company general account” (as the term is defined in the United States
Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance
companies approved by the National Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves
and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same
employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such
Purchaser’s state of domicile; or 
 (b)    the Source is a separate account that is maintained solely in
connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or
beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or 

(c)    the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this
clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 

(d)    the Source constitutes assets of an “investment fund” (within the meaning of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset 

  
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manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment fund, when
combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and
managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied as of the last day of the most recent calendar quarter, the QPAM does not own a 10% or
more interest in the Company and no Person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 20% or more interest in the Company (or less than 20% but greater
than 10% if such Person exercises control over the management or policies of the Company by reason of its ownership interest) and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in
such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or 
 (e)    the
Source constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23 (the “INHAM Exemption”)) managed by an
“in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied,
neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM
and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or 

(f)    the Source is a governmental plan; or 

(g)    the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more
employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or 

(h)    the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of
ERISA. 
 As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,”
and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA. 

SECTION 7.    INFORMATION. 

Section 7.1.    Financial and Business Information. The Company shall deliver to each
Holder of Notes: 
 (a)    Quarterly Statements — within 45 days after the end of each quarterly
fiscal period in each calendar year of the Company and its Subsidiaries (excluding the last quarterly fiscal period of each such calendar year), duplicate copies of 

(i)    balance sheets of the Company and its Subsidiaries on a consolidated basis as at the end of such
quarter, and 

  
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 (ii)    profit and loss statements and cash flows
statements for the Company and its Subsidiaries on a consolidated basis for such quarter and (in the case of the second and third quarters) for the portion of the calendar year ending with such quarter, 

setting forth in each case in comparative form the figures for the corresponding periods in the previous calendar year, all in reasonable
detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer of the Company as fairly presenting, in all material respects, the financial position of the companies being
reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments; 

(b)    Annual Statements — within 105 days after the end of each calendar year of the Company,
duplicate copies of 
 (i)    balance sheets of the Company on a consolidated basis as at the end of such
year, and 
 (ii)    statements of income, profit and loss statements and cash flows statements for the
Company on a consolidated basis for such year, 
 setting forth in each case in comparative form the figures for the previous calendar year,
all in reasonable detail, prepared in accordance with GAAP, and accompanied by 
 (A)    an opinion
thereon of Ernst & Young LLP or another independent public accounting firm of nationally recognized standing selected by the Company (herein, the “Approved Accountant”), which opinion shall state that such financial
statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of the Approved
Accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, and 

(B)    a certificate of the Approved Accountants stating that they have reviewed this Agreement and
stating further whether, in making their audit, they have become aware of any condition or event that then constitutes a Default or an Event of Default, and, if they are aware that any such condition or event then exists, specifying the nature and
period of the existence thereof (it being understood that the Approved Accountants shall not be liable, directly or indirectly, for any failure to obtain knowledge of any Default or Event of Default unless the Approved Accountants should have
obtained knowledge thereof in making an audit in accordance with generally accepted auditing standards or did not make such an audit); 

  
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 (c)    Other Reports — promptly upon their becoming
available, and to the extent not otherwise required to be delivered pursuant to another provision of this Agreement, one copy of (i) each financial statement and such other reports and notices as a Holder may reasonably request sent by the
Company to its Member, (ii) each report or filing (without exhibits except as expressly requested by such Holder) other than regular and periodic reports and filings made by the Company to any state or Federal regulatory body, and
(iii) each report or notice made by SDTS to the holders of its notes issued pursuant to the SDTS 2009 Note Agreement or the SDTS 2010 Note Agreement; 

(d)    Notice of Default or Event of Default — promptly, and in any event within 5 Business Days
after (i) a Responsible Officer of the Company becoming aware of the existence of any Default or Event of Default or
that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in
Section 11(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto and (ii) the Company receives a written
notice of default under a System Lease from the applicable Qualified Lessee, a copy of such notice of default or a written notice specifying the nature and period of existence of such default and what action the Company is taking or proposes
to take with respect
thereto;; 

(e)    [Intentionally Omitted]; 

(f)    [Intentionally Omitted]; 

(g)    Notices from Governmental Authority — promptly, and in any event within 5 Business Days of
receipt of (or knowledge thereof by a Responsible Officer of the Company) copies of any notice to the Company, any Subsidiary, or the Member from any Federal or state Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse Effect; 
 (h)    Other Notices —
promptly, and in any event within 5 Business Days of receipt (or knowledge by a Responsible Officer of the Company) thereof: 

(i)    any pending or threatened adversarial or contested proceeding of or before a Governmental Authority
that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; 

(ii)    any litigation or proceeding taken or threatened in writing against the Company, the Member or any
Subsidiary, that, if successful, could reasonably be expected to result in a Material Adverse Effect. 

(i)    Annual Operating Budgets — As soon as available and in any event within 30 days after the close
of each fiscal year of each of Sharyland and
SDTS, the annual budget of each of Sharyland and SDTS. 

(j)    Information Required by Rule 144A — upon the request of such Holder (and
shall deliver to any qualified institutional buyer designated by such Holder), such financial and other information as such Holder may reasonably determine to be necessary in order to permit 

  
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compliance with the information requirements of Rule 144A under the Securities Act in connection with the resale of Notes, except at such times as the Company is subject to the reporting
requirements of section 13 or 15(d) of the Exchange Act (for the purpose of this Section 7.1(j), the term “qualified institutional buyer” shall have the meaning specified in Rule 144A under the
Securities Act); and 
 (k)    Requested Information — with reasonable promptness, such other data and
information relating to the business, operations, affairs, financial condition, assets or properties of the Company or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be
reasonably requested by any such Holder of Notes. 
 Section 7.2.    Officer’s
Certificate. Each set of financial statements delivered pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth: 

(a)    Covenant Compliance — the information (including detailed calculations) required in order to
establish whether the Company was in compliance with the requirements of Sections 9.6, 10.6 and 10.9 of this Agreement, during the quarterly or annual period covered by the statements then being furnished (including
with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage
then in existence); and 
 (b)    Event of Default — a statement that such Senior Financial Officer
has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company from the beginning of the quarterly or annual period covered by the statements then
being furnished to the date of the certificate and that no Default or an Event of Default has occurred and is continuing or, if any such condition or event has occurred and is continuing (including, without limitation, any such event or condition
resulting from the failure of the Company to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 

Section 7.3.    Visitation. The Company shall permit the representatives of each Holder
of Notes that is an Institutional Investor: 
 (a)    No Default — if no Default or Event of Default
then exists, at the expense of such Holder (or in the case of the Collateral Agent, the Holders) and upon reasonable prior notice, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company
with the Company’s officers, and (with the consent of the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably
withheld) to visit the other offices and properties of the Company, all at such reasonable times and as often as may be reasonably requested in writing; and 

  
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 (b)    Default — if a Default or Event of Default
then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company, to examine all its books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss its
affairs, finances and accounts with its officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company), all at such times and as often as may
be reasonably requested. 
 SECTION 8.    PAYMENT AND PREPAYMENT OF THE NOTES. 

Section 8.1.    Amortization; Maturity. On each Payment Date, the Company will prepay the
principal amounts set forth in the amortization schedule attached hereto as Schedule 8.1 (the “Amortization Schedule”) (or such lesser principal amount as shall then be outstanding) of the Notes at par and
without payment of the Yield-Maintenance Amount or any premium, provided that upon any partial prepayment of the Notes pursuant to Section 8.2, the principal amount of each required prepayment of the Notes becoming
due under this Section 8.1 on and after the date of such prepayment shall be reduced in the same proportion as the aggregate unpaid principal amount of the Notes is reduced as a result of the prepayment. The entire unpaid
principal balance of the Notes shall be due and payable on the Maturity Date. 

Section 8.2.    Optional Prepayments with Yield-Maintenance Amount. The Company may, at
its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than $1,000,000 in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the
Yield-Maintenance Amount determined for the prepayment date with respect to such principal amount. The Company will give each Holder of Notes written notice of each optional prepayment under this Section 8.2 not less than
30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal
amount of each Note held by such Holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be
accompanied by a certificate of a Senior Financial Officer as to the estimated Yield-Maintenance Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of
such computation. Two Business Days prior to such prepayment, the Company shall deliver to each Holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such Yield-Maintenance Amount as of the specified prepayment
date. 
 Section 8.3.    Allocation of Partial Prepayments. In the case of each partial
prepayment of the Notes, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore
called for prepayment. 
 Section 8.4.    Maturity; Surrender, Etc. In the case of each
prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with
interest on such principal amount accrued to such date and the applicable Yield-Maintenance Amount, if any. From and after such date, unless the Company shall fail to pay 

  
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such principal amount when so due and payable, together with the interest and Yield-Maintenance Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note
paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 

Section 8.5.    Purchase of Notes. The Company will not and will not permit any Affiliate
to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes or (b) pursuant to
Section 13.2(b); provided that if an Affiliate which does not Control and is not Controlled by the Company has so acquired any of the outstanding Notes, such acquisition shall not constitute an Event of Default. The
Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes. 

Section 8.6.    Yield-Maintenance Amount. 

“Yield-Maintenance Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of
the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Yield-Maintenance Amount may in no event be less than zero.
For the purposes of determining the Yield-Maintenance Amount, the following terms have the following meanings: 
 “Called
Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to
Section 12.1, as the context requires. 
 “Discounted Value” means, with respect to the Called
Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance
with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 

“Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by
(i) the yields reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may
replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or
(ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such
yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for U.S. Treasury securities
having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. 

  
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 In the case of each determination under clause (i) or clause (ii), as the case may
be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating
linearly between (1) the applicable U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable U.S. Treasury security with the maturity closest to and less than such
Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note. 

“Remaining Average Life” means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect
to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due
date of such Remaining Scheduled Payment. 
 “Remaining Scheduled Payments” means, with respect to the Called Principal of
any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided
that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such
Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or 12.1. 

“Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be
prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

SECTION 9.    AFFIRMATIVE COVENANTS. 

The Company covenants that so long as any of the Notes are outstanding: 

Section 9.1.    Compliance with Law. Without limiting
Section 10.4, the Company will, and will cause its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which it is subject, including, without limitation, ERISA, the USA Patriot Act and
Environmental Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of its properties or to the conduct of its businesses to the extent necessary
to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental
authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

  
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 Section 9.2.    Payment of Taxes and
Claims. The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments,
governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and
payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, provided that none of the Company or any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount,
applicability or validity thereof is contested by such Person on a timely basis in good faith and in appropriate proceedings, and such Person has established adequate reserves therefor in accordance with GAAP on its books or (ii) the nonpayment
of all such taxes, assessments, charges, levies and claims in the aggregate could not reasonably be expected to have a Material Adverse Effect. 

Section 9.3.    Existence, Etc. The Company will at all times preserve and keep in full
force and effect its limited liability company existence and all rights and franchises of the Company unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate
existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect. The Company will cause each of its Subsidiaries to at all times preserve and keep in full force and effect its limited liability company,
corporate or limited partnership existence, except as permitted pursuant to Section 10.2. 

Section 9.4.    Books and Records. The Company will, and will cause each of its
Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over such Person. 

Section 9.5.    Collateral; Further Assurances. The Company shall take all actions
necessary to insure that the Collateral Agent, on behalf of the Secured Parties, has and continues to have in all relevant jurisdictions duly and validly created, attached, perfected and enforceable first-priority Liens on the Collateral
constituting UCC Collateral, in each case, to the extent required under the Security Documents (including after-acquired Collateral), subject to no Liens other than Permitted Liens. The Company shall cause the Obligations to constitute direct senior
secured obligations of the Company and to rank senior in right of payment and to rank senior in right of security (other than Permitted Liens) with respect to Collateral granted in the Security Documents to all other Indebtedness of the Company
(other than Permitted Secured Indebtedness, with which it shall be pari passu in accordance with the terms of the Collateral Agency Agreement). 

Section 9.6.    Financial Ratios. (a) The Company shall at all times maintain, on a
consolidated basis, a Total Debt to Capitalization Ratio of not more than 0.75 to 1.00. 
 (b)    The Company shall
maintain, for each period of four consecutive fiscal quarters, a Consolidated Debt Service Coverage Ratio of at least 1.20 to 1.00; provided that for purposes of this Section 9.6(b), the Debt Service Coverage Ratio shall be deemed to be
1.20 to 1.00 for the three fiscal quarters ending December 31, 2009, March 31, 2010 and June 30, 2010. 

  
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 Section 9.7.    Debt Service Reserve
Account. The Company shall establish and maintain a Debt Service Reserve Account at the Depositary in accordance with the Depositary Agreement and shall fund the Debt Service Reserve Account as required in the Depositary Agreement. All amounts
held in the Debt Service Reserve Account shall be held in cash or in Permitted Investments. 
 SECTION 10.    NEGATIVE
COVENANTS. 
 The Company covenants that so long as any of the Notes are outstanding: 

Section 10.1.    Transactions with Affiliates. The Company will not and will not cause or
permit any Subsidiary to enter into directly or indirectly any transaction or group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any
Affiliate, other than, (i) transactions with Project Finance Subsidiaries as permitted by Section 9.7(b) of the SDTS 2010 Note Agreement and other transactions between or among the Company and one or more Subsidiaries, or any subset
thereof, to the extent permitted under Sections 10.3, 10.6 and 10.7, (ii) in the case of a Qualified Lessee, pursuant to a Lease or another lease of transmission and distribution
assets that satisfies clause (vii) of this Section 10.1, (iii) any
Qualified Lessee Affiliate Loan and any Indebtedness permitted under Section 10.6(d)(ii) of the SDTS 2010 Note Agreement, (iv) transactions entered into in connection with the Cross Valley Project on or prior to the Cross Valley Project Transfer and the Golden Spread Project on or prior to the Golden Spread
Project Transfer, (v) ROFO
Transfers[reserved], (iii) [reserved], (iv) [reserved], (v) Permitted Affiliate Loans, (vi) payment of customary fees and reasonable out-of-pocket costs to, and indemnities for the benefit of, directors, officers
and employees of the Borrower and its Subsidiaries in the ordinary course of business,
orand (vii) upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtained in a comparable arms-length transaction with a Person not an Affiliate; provided that transactions will be deemed to meet the requirements of this clause (vii) if (A) prior to a
Qualifying IPO, such transaction are on terms approved by the holders of a majority of the equity interests of InfraREIT held by Persons who do not have a separate material interest in such transaction other than by virtue of their ownership of such
equity interests, or by a majority of the directors nominated by such Persons, and (B) upon the completion of a Qualifying IPO and thereafter, such transactions
are on terms approved by a majority of the board of directors (or comparable governing body) of InfraREIT or an Affiliate thereof who are “independent” (as
such term is defined pursuant to the rules of the primary exchange on which the equity interests are then listed for trading), or a majority of the
“Independent” members of a committee of any such board of directors (or comparable governing
body).. 

Section 10.2.    Merger, Consolidation, Etc. The Company will not and will not cause or
permit any of its Subsidiaries to consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person except that (i) SDTS and its
Subsidiaries may engage in transactions permitted under Section 10.2 of the SDTS 2010 Note Agreement, (ii) so long as immediately after giving effect to such merger or consolidation or such conveyance, transfer or
lease of all or substantially all of its assets, no Default or Event of Default shall have occurred or will result therefrom, the Company or any Subsidiary may merge or consolidate with another Person, and any Subsidiary

  
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may convey, transfer or lease all or substantially all of its assets to another Person, so long as, after giving effect to such merger or consolidation, or such conveyance, transfer or lease of
all or substantially all of its assets, (a) with respect to any merger or consolidation to which the Company is a party, the Company shall be the surviving entity, (b) with respect to any merger or consolidation to which a Subsidiary is a
party but the Company is not, a Subsidiary (other than a Project Finance Subsidiary) shall be the surviving entity and (c) with respect to any conveyance, transfer or lease of all or substantially all of its assets by the Company or any
Subsidiary, the Company or another Subsidiary (other than a Project Finance Subsidiary) shall be the transferee or lessee of such assets, and (iii) the FERC Merger
shall be
permitted[reserved]. 
 Section 10.3.    Line of
Business. The Company will not engage in any business other than owning the outstanding membership interest in SDTS and in other Subsidiaries (permitted under Section 10.8), the general business nature of which, when
taken as a whole, is the transmission and distribution of electric power and the provision of ancillary services. The Company will not cause or permit any Subsidiary to engage in any business if, as a result, the general nature of the business in
which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the transmission and distribution of electric power and the provision of ancillary services. 

Section 10.4.    Terrorism Sanctions Regulations. The Company will not and will not
permit any Controlled Entity (a) to become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or any Person that is the target of sanctions imposed by the United Nations or by the European
Union, or (b) directly or indirectly to have any investment in or engage in any dealing or transaction (including, without limitation, any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such
investment, dealing or transaction (i) would cause any holder to be in violation of any applicable United States (federal or state) anti-terrorism law or regulation applicable to such holder, or (ii) is prohibited by or subject to
sanctions under any U.S. Economic Sanctions, or (c) to engage, nor shall any Affiliate of either engage, in any activity that could subject such Person or any holder to sanctions under CISADA or any similar law or regulation with respect
to Iran or any other country that is subject to U.S. Economic Sanctions. 

Section 10.5.    Liens. The Company will not directly or indirectly create, incur, assume
or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to the Collateral or any other property of the Company, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign
or otherwise convey any right to receive income or profits, or on any other asset now owned or hereafter acquired by the Company, except (each, a “Permitted Lien”): 

(a)    Liens created by the Financing Documents; 

(b)    Liens for taxes, assessments or other governmental charges which are not yet due and payable or the payment of which
is not at the time required by Section 9.2; 
 (c)    any attachment or judgment Lien, unless
such attachment or judgment Lien constitutes an Event of Default under Section 11(l) hereof; 

  
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 (d)    Liens existing on the Second Amendment Date and securing the
Indebtedness of the Company referred to in Schedule 10.6 hereto; 
 (e)    Any interest of
title of a lessor under leases; and 
 (f)    Liens securing Permitted Secured Indebtedness on a pari passu basis
with the Obligations in accordance with the terms of the Collateral Agency Agreement. 

Section 10.6.    Indebtedness. The Company will not incur, or in any manner become or be
liable in respect of any Indebtedness, except the following Indebtedness, which may be incurred subject to the requirements of the last paragraph of this section: 

(a)    Indebtedness evidenced by the Financing Documents; 

(b)    Indebtedness existing on the Second Amendment Date and referred to in Schedule 10.6
hereto; or 

(c)    Indebtedness of the Company that if incurred, would not result in a breach of
Section 9.6(a); provided, that if the Indebtedness is proposed to be secured by any property of the Company or any other Collateral, then at least 5 Business Days (or such shorter period reasonably agreed by the
Required Holders) prior to the incurrence of Indebtedness, the Company shall (x) notify the Holders of the intent to incur such Indebtedness, which notice shall set forth in reasonable detail (i) the amount and proposed economic terms of
such Indebtedness, (ii) the type of lender or purchaser and (iii) the proposed collateral for such Indebtedness (which proposed collateral may include any or all of the “Collateral” as defined in the Collateral Agency
Agreement), and (y) deliver to the Collateral Agent and the other parties to the Collateral Agency Agreement an executed joinder agreement pursuant to which all the proposed holders of such Indebtedness have become party to the Collateral
Agency Agreement.; or 

(d)    
(i) any Permitted Affiliate Loan the aggregate principal amount of which does not exceed $325,000,000 outstanding at any given time
and
(ii) other Indebtedness owing to Affiliates otherwise acceptable to the Required Holders. 
 Indebtedness may be incurred under this Section 10.6(c) only if no Default or Event
of Default exists or, as a result of such incurrence would exist. 

Section 10.7.    Loans, Advances, Investments and Contingent Liabilities. The Company
will not make or permit to remain outstanding any loan or advance to, or extend credit other than credit extended in the ordinary course of business to any Person, or own, purchase or acquire any stock, obligations or securities of, or any other
interest in, or make any capital contribution to, any Person, or commit to do any of the foregoing, except (a) Permitted Investments, (b) ownership, purchase and acquisition of equity interests in and capital contributions to Project
Finance Subsidiaries, and (c) Investments in Wholly-Owned Subsidiaries other
than Project Finance Subsidiaries and (d) Qualified Lessee Affiliate
Loans. 

Section 10.8.    No Subsidiaries. The Company shall have no Subsidiaries other than
Project Finance Subsidiaries and Wholly Owned Subsidiaries. The Company shall give the Holders notice 5 Business Days prior to creating any new Subsidiaries. 

  
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 Section 10.9.    Restricted Payments.
The Company will not, directly or indirectly, make or declare any Distribution unless the following conditions are met (the “Restricted Payment Conditions”): 

(a)    there does not exist and, after giving effect to the proposed Distribution, there will not exist, a Default or an
Event of Default; and 
 (b)    the balance in the Debt Service Reserve Account equals the Minimum Debt Service Reserve
Requirement. 
 The Company shall deliver to the Holders and the Collateral Agent before a Distribution is made a certificate of a
Responsible Officer of the Company stating that each of the foregoing conditions has been satisfied and, if requested by any Holder, providing supporting data and calculations. 

Section 10.10.    Amendments to Organizational Documents; Exercise of Rights. The Company
will not, and shall use commercially reasonable efforts not to permit the Member to, amend, supplement, terminate, replace or waive any provision of the Company Agreement or other organization documents. The Company will not exercise its voting and
other rights as a member of SDTS in a manner that would (i) alter or restrict the Company’s right to receive, or SDTS ability to make, distributions or (ii) cause or result in an act or omission by SDTS that constitutes or contributes
to the occurrence of a “Default” or “Event of Default” under the SDTS 2009 Financing Documents or the SDTS 2010 Financing Documents or any Security Document to which SDTS is a party. Notwithstanding this
Section 10.10, the Company may, without the consent of the Purchasers, amend the Company Agreement and/or exercise its voting rights and other rights as a member of SDTS as may be required to facilitate or implement any of
the following: 
 (a) to reflect the contribution of additional capital by the Member; 

(b) to reflect changes to SDTS’s operating agreement or other organizational documents permitted under Section 10.12 of the SDTS 2010
Note Purchase Agreement; 
 (c) to reflect a change that is of an inconsequential nature and does not adversely affect any Holders in any
material respect, or to cure any ambiguity, or correct or supplement any provision, not inconsistent with law or with the provisions of this Agreement; and 

(d) to satisfy any requirements, conditions, or guidelines contained in any order, directive, opinion, ruling or regulation of a Federal or
state agency or contained in Federal or state law. 
 The Company will provide notice to the Holders at least 5 Business Days prior to taking any such
action under the foregoing sentence of this Section 10.10. 

Section 10.11.    ERISA Compliance. 

(a)    Relationship of Vested Benefits to Plan Assets. The Company will not as of the last day of any calendar year
permit any Plan to be “at risk” within the meaning of Section 303 

  
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of ERISA to the extent such action could reasonably be expected to result in a Material Adverse Effect. The Company and its ERISA Affiliates will not incur withdrawal liabilities (and will not
become subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate could reasonably be expected to result in a Material Adverse Effect. 

(b)    Valuations. For the purposes of clause (a) above, all assumptions and methods used to determine the
actuarial valuation of vested and unvested employee benefits under any Plan at any time maintained by the Company and the present value of assets of any such Plan shall be reasonably consistent with those determinations made for purposes of
Section 5.11. 
 (c)    Prohibited Actions. The Company will not, nor, as applicable,
will any Plan at any time maintained by the Company 
 (i)    engage in any action that could reasonably
be expected to cause the execution and delivery of this Agreement and the issuance and sale of the Notes hereunder to result in a non-exempt “prohibited transaction” (as such term is
defined in Section 406 of ERISA and Section 4975(c) of the Code; 
 (ii)    fail to meet the
minimum funding standards of Section 302 of ERISA or Sections 412 and 430 of the Code, or seek or obtain a waiver thereof or fail to make any required contribution to a Multiemployer Plan; or 

(iii)    terminate any such Plan in a manner which could result in the imposition of a Lien on the Property
of the Company pursuant to Section 4068 of ERISA that could reasonably be expected to result in a Material Adverse Effect. 

Section 10.12.    Regulation. 

(a)    The Company shall not be or become subject to FERC jurisdiction under the FPA; provided, however, that
the Company shall not be in default of the forgoing negative covenant if the Company becomes subject to FERC jurisdiction under the FPA solely as a result of a change to the FPA or in FERC’s interpretation thereof or regulations
thereunder, if the Company takes all necessary actions to comply with applicable FERC requirements; and 
 (b)    The
Company shall not violate in any material respect any regulation or order of the Public Utility Commission of Texas applicable to it. 

Section 10.13.    Additional Financial Covenants. 

(a)    If the Company shall at any time enter into one or more agreements pursuant to which Indebtedness in an aggregate
principal amount greater than $10,000,000 shall be outstanding and such agreement contains one or more financial covenants which are more restrictive on the Company and its Subsidiaries than the financial covenants contained in
Section 9.6 of this Agreement, then such more restrictive financial covenants and any related definitions (the “Additional Financial Covenants”) shall automatically be deemed to be incorporated into
Section 9.6 of this Agreement by reference from the time such other agreement becomes binding upon the Company until such time as such other Indebtedness is repaid in full 

  
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and all commitments related thereto are terminated; provided, that if at the time of any such repayment or the termination of any such commitment a Default or Event of Default shall exist
under this Agreement, then such Additional Financial Covenants shall continue in full force and effect under this Agreement so long as such Default or Event of Default continues to exist. So long as such Additional Financial Covenants shall be in
effect, no modification or waiver of such Additional Financial Covenants shall be effective unless the Required Holders shall have consented thereto pursuant to Section 17.1 hereof. Promptly but in no event more than 5
Business Days following the execution of any agreement providing for Additional Financial Covenants, the Company shall furnish each Holder with a copy of such agreement. Upon written request of the Required Holders, the Company will enter into an
amendment to this Agreement pursuant to which this Agreement will be formally amended to incorporate the Additional Financial Covenants on the terms set forth herein. 

SECTION 11.    EVENTS OF DEFAULT. 

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: 

(a)    the Company defaults in the payment of any principal or Yield-Maintenance Amount, if any, on any Note when the same
becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or 

(b)    the Company defaults in the payment of any interest on any Note for more than five days after the same becomes due
and payable; or 
 (c)    the Company defaults in the performance of or compliance with any term contained in
Section 7.1(d), 9.6 or Section 10; or 
 (d)    the Company defaults
in the performance of or compliance with any term contained herein (other than those referred to in Sections 11(a), (b) and (c)) or in any other Financing Document (other than those referred to in another paragraph
of this Section 11) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of
such default from the Collateral Agent or Holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 11(d)); or 

(e)    any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in
this Agreement or any other Financing Document or in any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made; or 

(f)    (i) A default or event of default occurs under the SDTS 2009 Note Agreement or the SDTS 2010 Note Agreement or
the RBC Agreement and such failure continues for more than any cure period specified therefor; or 
 (g)    (i) theany Certificate of Conveniences and Necessity (#30192, #30026, #30114 and #30191)
issued or transferred by the Public Utility Commission of Texas to Sharyland and, prior to the FERC Merger, the FERC Operator,SDTS authorizing the ownership and operation of

  
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the System is terminated
without being timely replaced, revoked or otherwise is not in effect; or (ii) except as could not reasonably be expected to result in a Material Adverse Effect, any other Required Permit is terminated without being timely replaced (if such
terminated Permit continues to be a Required Permit), revoked or otherwise is not in effect; provided, however, that the termination without immediate renewal of any franchise agreement pursuant to which the Qualified Lessee operating the applicable portion of the System is authorized to operate the System and collect fees for services shall not constitute an Event of Default if the parties to the franchise agreement
continue to perform in accordance with the terms of such agreement notwithstanding the termination; or 

(h)    (i) any Lien granted to the Collateral Agent on any material portion of the Collateral, taken as a whole,
pursuant to any of the Security Documents is invalid, void, unenforceable or unperfected or ceases to have first priority (subject to Permitted Liens), or any Person commences any proceeding or takes any other action to render any such Lien invalid,
or to avoid any such Lien or to render any such Lien unenforceable or unperfected or to challenge the priority of such Lien, in each case for any reason other than as expressly permitted hereunder or thereunder (including by amendment, waiver and/or
consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of the Obligations; or (ii) an event of default occurs under any Permitted Secured Indebtedness, or the Company fails to comply with any material
terms of the Collateral Agency Agreement or commences any proceeding or takes any other action to render any part of the Collateral Agency Agreement unenforceable for any reason other than as expressly permitted hereunder or thereunder (including by
amendment, waiver and/or consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of the Obligations; or 

(i)    without limiting clause (h), (i) the Company is in default (as principal or as guarantor or other surety)
in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $2,500,000 beyond any period of grace provided with respect thereto,
(ii) the Company is in default in the performance of or compliance with any term of any evidence of any Indebtedness (including any mortgage, indenture or other agreement relating thereto), which Indebtedness is in an aggregate outstanding
principal amount of at least $2,500,000, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated
maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such
Indebtedness into equity interests), (x) the Company has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least
$2,500,000, or (y) one or more Persons have the right to require the Company to purchase or repay such Indebtedness in an aggregate outstanding principal amount of at least $2,500,000; or 

(j)    the Company (i) is generally not paying, or admits in writing its inability to pay, its debts as they become
due, (ii) files, or consents by answer or otherwise to the filing against it or, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency,
reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, 

  
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(iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property,
(v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or 

(k)    a court or Governmental Authority of competent jurisdiction enters an order appointing, without consent by the
Company, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any
other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any such
petition shall be filed against the Company and such petition shall not be dismissed within 90 days; or 
 (l)    a
final judgment or judgments for the payment of money aggregating in excess of $2,500,000 are rendered against the Company and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not
discharged within 60 days after the expiration of such stay; or 
 (m)    (i) Hunt Family Members cease to Control Sharyland, (ii) any Person other than a Qualified Lessee
shall be the lessee under any lease with respect to the System, (iii) the
MemberOncor shall cease to own or control, directly or indirectly,
90% of the outstanding equity interest of SDTS, or (iv) Hunt Family Members cease to own
and control, directly or indirectly, at least 5% of the outstanding equity interests of the Member, unless (x) InfraREIT has become a publicly held company, or
(y) SDTS has total assets on its balance sheet valued at $1,000,000,000 or greater;
or; or 

(n)    if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or
part thereof or a waiver of such standards or extension of any amortization period is sought or granted under Section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with
the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such
proceedings, (iii) any Plan shall be “at-risk” within the meaning of Section 303 of ERISA as of the last day of any calendar year, (iv) the Company or any ERISA Affiliate shall
have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from
any Multiemployer Plan, or (vi) the Company establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company thereunder; and any such event or
events described in clauses (i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect. 

As used in Section 11(n), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in section 3 of ERISA. 

  
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 SECTION 12.    REMEDIES ON DEFAULT, ETC. 

Section 12.1.    Acceleration. (a) If an Event of Default with respect to the Company
described in Section 11(j) or (k) (other than an Event of Default described in clause (i) of Section 11(j) or described in clause (vi) of Section 11(j)
by virtue of the fact that such clause encompasses clause (i) of Section 11(j)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 

(b)    If any other Event of Default has occurred and is continuing, any Holder or Holders of more than 51% in principal
amount of the Notes at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 

(c)    If any Event of Default described in Section 11(a) or (b) has occurred and is
continuing, any Holder or Holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and
payable. 
 Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the
Yield-Maintenance Amount determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of
which are hereby waived. The Company acknowledges, and the parties hereto agree, that each Holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and
that the provision for payment of a Yield-Maintenance Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under
such circumstances. 
 Section 12.2.    Other Remedies. If any Default or Event of
Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the Holder of any Note at the time outstanding may proceed to
protect and enforce the rights of such Holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any
of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 

Section 12.3.    Rescission. At any time after any Notes have been declared due and
payable pursuant to Section 12.1(b) or (c), the Holders of not less than 51% in principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its
consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and Yield-Maintenance Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest
on such overdue principal and Yield-Maintenance Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any

  
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other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than
non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has
been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right
consequent thereon. 
 Section 12.4.    No Waivers or Election of Remedies, Expenses,
Etc. No course of dealing and no delay on the part of any Holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such Holder’s rights, powers or remedies. No right, power or
remedy conferred by this Agreement or by any Note upon any Holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting
the obligations of the Company under Section 15, the Company will pay to the Holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such Holder incurred in any
enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements. 

SECTION 13.    REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES. 

Section 13.1.    Registration of Notes. The Company shall keep at its principal executive
office a register for the registration and registration of transfers of Notes. The name and address of each Holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in
such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and Holder thereof for all purposes hereof, and the Company shall not be affected by
any notice or knowledge to the contrary. The Company shall give to any Holder of a Note that is an Institutional Investor, promptly upon request therefor, a complete and correct copy of the names and addresses of all registered Holders of Notes. In
addition to and not in limitation of any representations contained herein, each Holder acknowledges and agrees that the Notes have not been registered under the Securities Act and may not be transferred except pursuant to registration or an
exemption therefrom and in compliance with Section 13.2(b) hereof. 

Section 13.2.    Transfer and Exchange of Notes. (a) Subject to compliance with
Section 13.2(b), upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), for registration of transfer or
exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered Holder of such Note or such Holder’s attorney duly authorized in writing and accompanied by
the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one
or more new Notes (as requested by the Holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such Holder may request
and shall be substantially in the form of Exhibit 1. Each such new Note shall be dated and bear interest from 

  
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the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a
sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $1,000,000, provided that if necessary to enable the registration of
transfer by a Holder of its entire holding of Notes, one Note may be in a denomination of less than $1,000,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the
representations set forth in Section 6.1 and Section 6.2. 

(b)    Each Holder hereby agrees that it will not offer for sale or sell any of its Notes or disclose any Confidential
Information to any prospective transferee of the Notes, other than to an Affiliate, or to another Holder without first delivering written notice to the Company (a “Right of First Offer Notice”) of its intent to sell such Notes and
disclose such Confidential Information. Such Right of First Offer Notice shall contain a reasonably detailed description of the proposed terms of such sale, including, without limitation, the proposed purchase price (the “Proposed Purchase
Price”) for such Notes and the names of up to ten prospective purchasers. If the Company so desires it may, within 5 Business Days of the receipt of such Right of First Offer Notice, inform such Holder in writing of its intent to purchase,
or have an Affiliate or Institutional Investor designated by the Company purchase, such Notes (a “Purchase Notice”) from the Holder delivering such Right of First Offer Notice at the Proposed Purchase Price, provided,
however, that if at such time a Default or Event of Default shall have occurred and be continuing, the Company shall not purchase, and shall not allow any Affiliate or Institutional Investor designated by the Company to purchase, the Notes of
the Holder delivering such Right of First Offer Notice. The aggregate principal amount of the Notes specified in such Purchase Notice shall be purchased by the Company, or such Affiliate or Institutional Investor, for the Proposed Purchase Price,
together with accrued interest on such Notes to the purchase date, on the date specified by the Company in such Purchase Notice, which shall be not more than 30 days following delivery of such Purchase Notice. If a Holder does not receive a
Purchase Notice from the Company within 5 Business Days after the delivery of a Right of First Offer Notice to the Company, such Holder shall have the right to sell its Notes identified in such Right of First Offer Notice to one or more of the
prospective purchasers identified in such Right of First Offer Notice for a price which is not less than the Proposed Purchase Price identified in such Right of First Offer Notice for a period of 120 days from the date of such Right of First
Offer Notice. In the event that the prospective purchasers identified by a Holder in a Right of First Offer Notice shall decline to purchase the Notes within such 120 day period, then the Holder may identify up to 10 additional Institutional
Investors through a new Right of First Offer Notice. 
 Section 13.3.    Replacement of
Notes. Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 

(a)    in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the
Holder of such Note is, or is a nominee for, an original Purchaser or another Holder of a Note with a minimum net worth of at least $100,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall
be deemed to be satisfactory), or 

  
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 (b)    in the case of mutilation, upon surrender and cancellation
thereof, 
 within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing
interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 

SECTION 14.    PAYMENTS ON NOTES. 

Section 14.1.    Place of Payment. Subject to Section 14.2,
payments of principal, Yield-Maintenance Amount, if any, and interest becoming due and payable on the Notes shall be made in New York City, New York at the principal office of JPMorgan Chase Bank National Association in such jurisdiction. The
Company may at any time, by notice to each Holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or
trust company in such jurisdiction. 
 Section 14.2.    Home Office Payment. So long as
any Purchaser or its nominee shall be the Holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal,
Yield-Maintenance Amount, if any, and interest by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser
shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or
reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment
most recently designated by the Company pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the
amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the
benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as
the Purchasers have made in this Section 14.2. 
 SECTION 15.    EXPENSES, ETC. 

Section 15.1.    Transaction Expenses. Whether or not the transactions contemplated
hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of one firm of special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and
each other Holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or

  
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consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under
this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by reason of being a Holder of any Note, but only to the extent such
subpoena or legal proceeding arises out of matters related to the Company, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and
financial information with the SVO provided. The Company will pay, and will save each Purchaser and each other Holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if
any, retained by a Purchaser or other Holder in connection with its purchase of the Notes). 

Section 15.2.    Survival. The obligations of the Company under this
Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement. 

SECTION 16.    SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or
transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent Holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser
or any other Holder of a Note; provided, that no representation or warranty shall be deemed to be made as of any time other than the date of execution and delivery of this Agreement or such other document, certificate, instrument or agreement
containing such representation or warranty. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this
Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter
hereof. 
 SECTION 17.    AMENDMENT AND WAIVER. 

Section 17.1.    Requirements. This Agreement and the Notes may be amended, and the
observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the
provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing, and (b) no such amendment
or waiver may, without the written consent of the Holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or
time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Yield-Maintenance Amount on, the Notes, (ii) change the percentage of the principal amount of the
Notes the Holders of which are required to consent to any such amendment or waiver, or (iii) amend any of Section 8, 11(a), 11(b), 12, 17 or 20. 

  
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 Section 17.2.    Solicitation of Holders of
Notes. 
 (a)    Solicitation. The Company will provide each Holder of the Notes (irrespective of the amount
of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such Holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in
respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each
Holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite Holders of Notes. 

(b)    Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way
of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any Holder of Notes as consideration for or as an inducement to the entering into by any Holder of Notes of any waiver or amendment
of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each Holder of Notes then outstanding even if
such Holder did not consent to such waiver or amendment. 
 Section 17.3.    Binding
Effect, Etc. Any amendment or waiver consented to as provided in this Section 17 applies equally to all Holders of Notes and is binding upon them and upon each future Holder of any Note and upon the Company without
regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any
right consequent thereon. No course of dealing between the Company and the Holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any Holder of such Note. As used herein, the
term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented. 

Section 17.4.    Notes Held by Company, Etc. Solely for the purpose of determining
whether the Holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any
action provided herein or in the Notes to be taken upon the direction of the Holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates
shall be deemed not to be outstanding. 
 SECTION 18.    NOTICES. 

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a
confirming copy of such notice by a 

  
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recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight
delivery service (with charges prepaid). Any such notice must be sent: 
 (i)    if to any Purchaser or
its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing, 

(ii)    if to any other Holder of any Note, to such Holder at such address as such other Holder shall have
specified to the Company in writing, and 

(iii) 
   if to the Company 
 Sharyland Distribution & Transmission Services, L.L.C. 

1616 Woodall Rogers
Freeway 

Dallas, TX 75202 

Attn: 
Treasurer 

Email: 
treasury@oncor.com 

    
       Kevin.Fease@oncor.com 
 (iii) if to the Company, to the
Company at 1807 Ross Avenue, 4th Floor, Dallas, Texas 75201, facsimile: (972) 499-1870 to the attention of David
Campbell, or at such other address as the Company shall have specified to the Holder of each Note in writing. 

Notices under this Section 18 will be deemed given only when actually received. 

SECTION 19.    REPRODUCTION OF DOCUMENTS. 

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may
hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be
reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by
applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in
the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other Holder of
Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 

  
 -35- 

 SECTION 20.    CONFIDENTIAL INFORMATION. 

For the purposes of this Section 20, “Confidential Information” means Information delivered to any
Purchaser by or on behalf of the Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement, provided that such term does not include information that (a) other than as a result of disclosure by
any Purchaser or its employees or agents in violation of this Section 20 was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) other than as a result of disclosure by any
Purchaser or its employees or agents in violation of this Section 20 subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) other than
as a result of disclosure by any Purchaser or its employees or agents in violation of this Section 20 otherwise becomes known to such Purchaser other than through disclosure by the Company or (d) constitutes financial
statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. “Information” means information concerning the Company or its Subsidiaries, irrespective of its source or form
of communication, furnished by or on behalf of the Company or any of its Subsidiaries, including without limitation notes, analyses, compilations, studies or other documents or records prepared by any Purchaser, which contain or reflect or were
generated from information supplied by or on behalf of the Company or its Subsidiaries. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to
protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and
affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this Section 20, (iii) any other Holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or
any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which it offers to purchase
any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any Federal or state regulatory authority
having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or
(viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal
process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be
necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes and this Agreement. Each Holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and
to be entitled to the benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any Holder of a Note of information required to be
delivered to such Holder under this Agreement or requested by such Holder (other than a Holder that is a party to this Agreement or its nominee), such Holder will enter into an agreement with the Company embodying the provisions of this
Section 20. 

  
 -36- 

 SECTION 21.    SUBSTITUTION OF PURCHASER. 

Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the Notes that it has agreed to purchase
hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of
the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall
be deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the Notes then held by
such Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to
such Affiliate, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original Holder of the Notes under this Agreement. 

SECTION 22.    MISCELLANEOUS. 

Section 22.1.    Successors and Assigns. All covenants and other agreements
contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent Holder of a Note) whether so expressed or not. 

Section 22.2.    Payments Due on Non-Business
Days. Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice of any optional prepayment specify a Business Day as the date
fixed for such prepayment), any payment of principal of or Yield-Maintenance Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days
elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the
next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day. 

Section 22.3.    Accounting Terms. All accounting terms used herein which are not
expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with
GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP. For purposes of determining compliance with any financial covenants contained in this Agreement, any election by the Company to measure an item of Indebtedness
using fair value (as permitted by Statement of Financial Accounting Standards No. 159 or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made. 

Section 22.4.    Severability. Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 

  
 -37- 

 Section 22.5.    Construction, Etc.
Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision)
be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly
or indirectly by such Person. 
 For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a
part hereof. 
 Section 22.6.    Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the
parties hereto. 
 Section 22.7.    Governing Law. This Agreement shall be
construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles
of the law of such State that would permit the application of the laws of a jurisdiction other than such State. 

Section 22.8.    Jurisdiction and Process; Waiver of Jury Trial. (a) The
Company irrevocably submits to the non-exclusive jurisdiction of any New York State or Federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out
of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the
jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. 
 (b)    The Company consents to process being served by or on behalf
of any Holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid,
return receipt requested, to it at its address specified in Section 18 or at such other address of which such Holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt
(i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and
personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service. 

  
 -38- 

 (c)    In addition to and notwithstanding the provisions of
Section 22.8(b) above, the Company hereby irrevocably appoints CT Corporation System as its agent to receive on its behalf and its property service of copies of the summons and complaint and any other process which may be
served in any action or proceeding. Such service may be made by mailing or delivering a copy of such process to the Company, in care of the process agent at 111 Eighth Avenue, 13th Floor, New York, New York 10011, and the Company hereby irrevocably
authorizes and directs the process agent to accept such service on its behalf. If for any reason the process agent ceases to be available to act as process agent, the Company agrees immediately to appoint a replacement process agent satisfactory to
the Required Holders. 
 (d)    Nothing in this Section 22.8 shall affect the right of any
Holder of a Note to serve process in any manner permitted by law, or limit any right that the Holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful
manner a judgment obtained in one jurisdiction in any other jurisdiction. 
 (e)    The parties hereto hereby waive trial
by jury in any action brought on or with respect to this Agreement, the Notes or any other document executed in connection herewith or therewith. 

Section 22.9.    Transaction References. The Company and the Holders shall not
refer to the other on an internet site or in marketing materials, press releases, published “tombstone” announcements or any other print or electronic medium, except with the referenced party’s prior written consent, which may be
withheld at its sole discretion. 
 * * * * * 

  
 -39- 

 DEFINED TERMS 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: 

“2014 Joinder Agreement” means a joinder agreement substantially in the form attached to the Collateral Agency Agreement, to
which each of the Company and the Member Administrative Agent, on behalf of itself and the other Lenders, is a party, pursuant to which the Member Administrative Agent became a Secured Party under the Collateral Agency Agreement. 

“Additional Financial Covenants” shall have the meaning given to it in Section 10.13 hereof. 

“Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly
through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person and, with respect to the Company, shall include any Person beneficially owning or holding, directly or indirectly, 10% or more of
any class of voting or equity interest of the Company or any corporation of which the Company beneficially owns or holds, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests; provided, however, that this definition shall at all times exclude owners or investors in the Member other than Hunt Family
Members. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. 

“Agreement” is defined in the introductory paragraph of this Agreement. 

“Amortization Schedule” is defined in Section 8.1(a). 

“Anti-Terrorism Order” means Executive Order No. 13,224 of September 24, 2001, Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended. 

“Approved Accountant” is defined in Section 7.1(b)(A). 

“Blocked Person” means (i) an OFAC Listed Person, (ii) an agent, department, or instrumentality of, or a
Person otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC Sanctions
Program, or (iii) a Person otherwise blocked, subject to sanctions under or engaged in any activity in violation of U.S. Economic Sanctions. 

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required
or authorized to be closed. 
 “Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP. 

  
 Schedule B-1 

(To Note Purchase Agreement) 

 “Cap Rock Transaction” is defined in the SDTS 2010 Note Agreement. 

“Cash Flow” means, for any period, the sum of the following (without duplication): (i) all cash paid toOperating Cash Flow of SDTS during such period under the System
Leases, (ii) all cash distributions received by SDTS from Project Finance Subsidiaries of SDTS during such period, (iii) all interest and investment earnings, if any, paid to SDTS
during such period on amounts on deposit in the account created under the Deposit Agreement, if any, (iv) revenues, if any, received by or on behalf of SDTS during such period under any insurance policy as business interruption insurance
proceeds, (v) direct cash equity investments made by the Member in the Company during such period (excluding equity contributed to a Project Finance Subsidiary) in an amount not greater than the amount necessary to cause the Company to be in
compliance with the financial covenants set forth in Section 9.6 (each such investment, an “Equity Cure”); provided, however, that during any period of four consecutive fiscal quarters, “Cash
Flow” shall include an Equity Cure in no more than two of such quarters, (vi) proceeds of any borrowing made after the date hereof to the extent used to finance the payment of bullet or balloon installments of Indebtedness for borrowed
money, (vii) to the extent that a direct Wholly-Owned Subsidiary is formed in the future, (x) all cash paid to such Subsidiary during such period under leases of such Subsidiary’s assets which is funded into the Deposit Account
pursuant to the Deposit Account Control Agreement, (y) all interest and investment earnings paid to such Subsidiary during such period on amounts on deposit in an account subject to a deposit account control agreement in favor of the Collateral
Agent (if any), and (z) revenues, if any, received by or on behalf of such Subsidiary during such period under any insurance policy as business interruption insurance proceeds and funded into the Deposit Account pursuant to the Deposit Account
Control Agreement. 
 “Cash Flow Available for Debt Service” for any period, means (i) Cash Flow received
during such period minusplus (ii)(A) all O&M Costs interest expense paid during such period andminus (
Biii) if an Equity Cure has been made in any fiscal quarter during the period for which Cash Flow Available for Debt Service is calculated, the lesser of the aggregate amount of (x) such Equity Cure during
such period and (y) the aggregate amount of cash distributions paid by the Company during such period. 

“CISADA” means the Comprehensive Iran Sanctions, Accountability and Divestment Act. 

“Closing” is defined in Section 3. 

“Closing Date” means the date upon which the Closing occurs. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated
thereunder from time to time. 
 “Collateral” means all “Collateral” described in the Security Agreement and all
Membership Collateral. 
 “Collateral Agency Agreement” means the Amended and Restated Collateral Agency Agreement, dated
as of February 21, 2014, by and among the Collateral Agent, the Company and the Holders (as may be amended, restated, amended and restated or otherwise modified from time to time). 

  
 Schedule B-2 

(To Note Purchase Agreement) 

 “Collateral Agent” means The Bank of New York Mellon Trust Company, N.A., a
national association, acting in its capacity as Collateral Agent for itself and the other Secured Parties, or its successors in such capacity appointed pursuant to the terms of the Collateral Agency Agreement. 

“Company” means Transmission and Distribution Company, L.L.C., a Texas limited liability company, or any successor that
becomes such in the manner prescribed in Section 10.3. 
 “Company Agreement” means that certain
Amended and Restated Company Agreement of the Company, made effective as of December 2009, by the Member, as amended, supplemented or otherwise modified. 

“Confidential Information” is defined in Section 20. 

“Consolidated Debt Service Coverage Ratio” means, for each period of four consecutive fiscal quarters, the quotient of
(i) Cash Flow Available for Debt Service for such period to (ii) Debt Service for such period. 
 “Consolidated Net
Worth” means at any date, the sum of all amounts that would, in conformity with GAAP, be included on a consolidated balance sheet of the Company and its consolidated Subsidiaries under members’ equity at such date, plus minority
interests, as determined in accordance with GAAP minus any members’ equity attributable to any Project Finance Subsidiary. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 

“Controlled Entity” means (i) any of the Subsidiaries of the Company and any of their or the Company’s respective
Controlled Affiliates and (ii) if the Company has a parent company, such parent company and its Controlled Affiliates. 
 “CREZ Lease” means (A) prior to the effectiveness of the CREZ Lease Amendment and Restatement, the Amended and Restated Lease Agreement (CREZ Assets) dated as of April 30, 2013, between SP, as lessor, and Sharyland, as lessee, and (B) upon the effectiveness of the
CREZ Lease Amendment and Restatement, the CREZ Lease Amendment and Restatement, as such lease may be amended, restated, supplemented or
otherwise modified from time to time, or any new lease entered into in replacement
thereof. 

“CREZ Lease Amendment and Restatement” means the Second Amended and Restated Lease
Agreement (CREZ Assets), between SP, as lessor, and Sharyland, as lessee, with respect to
the CREZ Project. 

  
 Schedule B-3 

(To Note Purchase Agreement) 

 “CREZ Project” shall mean the five transmission lines,
four substations and other facilities in Texas identified and awarded to Sharyland by the Public Utility Commission of Texas (the
“PUCT”
) in Docket Number 37902. 

“Cross Valley Project” means the approximately 49 mile transmission line in South Texas near the Mexican border, known
as the
“North Edinburg to Loma Alta 345 kV single-circuit transmission
line” project, subsequently, renamed as the “North Edinburg to Palmito 345 kV double-circuit transmission line” project, which is built on double-circuit capable structures and the Palmito substation located on
the eastern terminus of the Cross Valley Project. The Cross Valley Project is part of
a 100 mile transmission line, which is jointly developed and permitted by Sharyland and Electric Transmission Texas. 

“Cross Valley Project Transfer” means the sale and Transfer of all of the equity interests of CV Project Entity, L.L.C. to Cross Valley Partnership, L.P. for a purchase price at least equal to the Cross Valley
Project’s rate base cost at such time. 
 “Debt Service” for any period, the aggregate (without duplication) of
(i) all amounts of interest on the Notes and in respect of other Indebtedness of the Company or of SDTS required to be paid during such period, plus (ii) all amounts of principal on the Notes and in respect of other Indebtedness of the
Company or of SDTS required to be paid during such period, excluding any optional prepayments of principal during such period, plus (iii) all other premiums, fees, costs, charges, expenses and indemnities due and payable to the Holders or the
other Secured Parties and holders of other Indebtedness of the Company or of SDTS and agents acting on their behalf during such period. 

“Debt Service Reserve Account” is defined in the Depositary Agreement. 

“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of
notice or both, become an Event of Default. 
 “Default Rate” means that rate of interest per annum from time to time equal
to the greater of (i) 10.5% per annum, and (ii) 2% over the rate of interest publicly announced by The Bank of New York Mellon from time to time in New York as its “base” or “prime” rate. 

“Depositary” means The Bank of New York Mellon Trust Company, N.A., a national association, in its capacity as Depositary
under the Depositary Agreement, or its successor in such capacity appointed pursuant to the terms of the Depositary Agreement. 

“Depositary Agreement” is defined in Section 4.12(c). 

“Deposit Account Control Agreement” is defined in Section 4.12(c). 

“Deposit Account Control Bank” means Bank of America, N.A. in such capacity under the Deposit Account Control Agreement. 

“Development Agreement” means that certain Development Agreement to be entered into among Hunt Transmission Services,
L.L.C., Sharyland, InfraREIT and/or the Member in connection with one or more New Projects, pursuant to which Hunt Transmission Services, L.L.C. has granted InfraREIT a right of first offer related to the New Projects
identified therein, as amended from time to time in accordance with its
terms. 

  
 Schedule B-4 

(To Note Purchase Agreement) 

 “Disclosure Documents” is defined in Section 5.3.

 “Distributions” means any dividend or other distribution (whether in cash, securities or other property) with respect to
any equity interests of any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or
termination of any such equity interests or on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent Person thereof), or any option, warrant or other right to acquire any such dividend or other
distribution or payment. 
 “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into
the environment, including but not limited to those related to Hazardous Materials. 
 “ERCOT” means the Electric
Reliability Council of Texas. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect. 
 “ERISA Affiliate” means any
trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code. 

“Event of Default” is defined in Section 11. 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time. 

“FERC” means the Federal Energy Regulatory Commission, or any successor agency to its duties and responsibilities. 

“FERC
Lease” means (A) prior to the effectiveness of the FERC Lease Amendment and Restatement, the Second Amended and Restated Lease Agreement, dated as of July 1, 2012, between FERC Owner and FERC Operator and (B) upon the effectiveness of the FERC Lease
Amendment and Restatement, the FERC Lease Amendment and Restatement, as such lease may be amended, restated, supplemented or otherwise modified from time to time, or any new lease entered into in replacement thereof. 
 “FERC Lease Amendment and
Restatement” means the Third Amended and Restated Lease Agreement
(Stanton Transmission Loop Assets) between FERC Owner, as lessor, and FERC Operator, as lessee. 

  
 Schedule B-5 

(To Note Purchase Agreement) 

 “FERC Merger” means the anticipated transaction or series of transactions pursuant to which SDTS FERC L.L.C. will merge into SDTS and SU FERC L.L.C. will merge into Sharyland. 
 “FERC Operator” means (A) prior to the FERC Merger, SU FERC, L.L.C., a Subsidiary of Sharyland, and
(B) upon the completion of the FERC Merger, Sharyland. 

“FERC
Owner” means (A) prior to the FERC Merger, SDTS FERC, L.L.C., a Subsidiary of SDTS, and (B) upon the completion
of the FERC Merger, SDTS. 
 “Financing Documents” means,
collectively, this Agreement, the Notes, the Security Documents and any other documents, agreements or instruments entered into in connection with any of the foregoing. 

“FPA” means the Federal Power Act, 16 U.S.C. §§791 et seq., as amended, and the regulations of the FERC
thereunder. 
 “GAAP” means generally accepted accounting principles as in effect in the United States of America. In the
event that any “Accounting Change” (as defined below) shall occur and such change results in a change in the method of calculation of financial covenants, ratios, standards or terms in this Agreement, then the Company and the Holders agree
to enter into negotiations in order to amend such provisions of this Agreement so as to reflect equitably such Accounting Changes with the desired result that the criteria for evaluating the financial condition of the Company,
and SDTS
and Sharyland shall be the same after such Accounting Changes as if such Accounting Changes had not been made. Until
such time as such an amendment shall have been executed and delivered by the Company and the Holders, all financial covenants, ratios, standards and terms in this Agreement shall continue to be calculated or construed as if such Accounting Changes
had not occurred. “Accounting Changes” refers to changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute
of Certified Public Accountants or, if applicable, the SEC. 

“Golden Spread Project” means a new 345 kilovolt transmission line that will be approximately 55 miles long and will connect the Golden Spread Electric Cooperative, Inc. Antelope-Elk Energy Center in Hale County, approximately 1.6 miles north of the City of Abernathy on County Road P, to the proposed White River
Station that will be built by Sharyland in Floyd County, approximately 9 miles northeast of the City of Floydada and 1.1 miles east of the intersection of County Road 231 and County Road 200 and the Abernathy substation that is located in the
western portion of the transmission line 
 “Golden Spread Project
Transfer” means the sale and Transfer of all of the equity interests
of the GS Project Entity to a Person Controlled by one or more Hunt Family Members for a purchase price at least equal to the Golden Spread
Project’s rate base cost at such time 

  
 Schedule B-6 

(To Note Purchase Agreement) 

 “Governmental Authority” means 

(a)    the government of: 

(i)    the United States of America or any State or other political subdivision thereof, or 

(ii)    any other jurisdiction in which the Company conducts all or any part of its business, or which
asserts jurisdiction over any properties of the Company, or 
 (b)    any entity exercising executive, legislative,
judicial, regulatory or administrative functions of, or pertaining to, any such government, or 
 (c)    ERCOT, or 

(d)    the Texas Regional Entity. 

“GS Project
Entity” shall mean a Project Finance Subsidiary of SDTS created to finance and develop the Golden Spread project. 

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of
negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any Indebtedness of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through
an agreement, contingent or otherwise, by such Person: 
 (a)    to purchase such Indebtedness or any property
constituting security therefor; 
 (b)    to advance or supply funds (i) for the purchase or payment of such
indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such
Indebtedness; 
 (c)    to lease properties or to purchase properties or services primarily for the purpose of assuring
the owner of such Indebtedness of the ability of any other Person to make payment of the Indebtedness; or 

(d)    otherwise to assure the owner of such Indebtedness against loss in respect thereof. 

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of
such Guaranty shall be assumed to be direct obligations of such obligor. 
 “Hazardous Material” means any and all
pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which 

  
 Schedule B-7 

(To Note Purchase Agreement) 

 
is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum,
petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances. 
 “Holder”
means, with respect to any Note the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1. 

“Hunt Family
Members” means (i) Ray L. Hunt; (ii) the spouse of Ray L. Hunt and each of his children and siblings;
(iii) the spouse and lineal descendants of any Person identified in the foregoing clause (ii); (iv) any trust or account primarily for the benefit of
any Person or Persons identified in the foregoing clauses (i), (ii) or (iii); (v) any corporation, partnership or other entity in which any of the Persons identified
in the foregoing clauses (i), (ii), (iii), or (iv) are the beneficial owners of and Control substantially all of the shares of capital stock, membership
interests, partnership interests or other equity interests and options or warrants to acquire, or securities convertible into, capital stock, membership interest, partnership interests or other equity securities of an entity; and
(vi) the personal representative or guardian of any of the Persons identified in the foregoing clauses (i), (ii) and (iii) upon such
Person’s death for purposes of the administration of such Person’s estate or upon such
Person’s disability or incompetency for purposes of the protection and
management of the assets of such Person. 
 “Indebtedness”
with respect to any Person means, at any time, without duplication, 
 (a)    its liabilities for borrowed money and its
redemption obligations in respect of mandatorily redeemable Preferred Stock; 
 (b)    its liabilities for the deferred
purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to
any such property); 
 (c)    (i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of
Capital Leases and (ii) all liabilities which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases; 

(d)    all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether
or not it has assumed or otherwise become liable for such liabilities); 
 (e)    all its liabilities in respect of
letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money); 

(f)    the aggregate Swap Termination Value of all Swap Contracts of such Person; and 

(g)    any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through
(f) hereof. 

  
 Schedule B-8 

(To Note Purchase Agreement) 

 Indebtedness of any Person shall include all obligations of such Person of the character described in
clauses (a) through (g) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. 

“InfraREIT” means
 Qualifying IPO, InfraREIT, L.L.C., a Delaware limited liability company, and any of its successors. 

“Initial NPA” is defined in the recitals hereto. 

“Institutional Investor” means (a) any Purchaser of a Note, (b) any Holder of a Note holding (together with one or
more of its Affiliates) more than 5% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any
insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any Holder of any Note. 

“Leases”
means (i) the System Leases, the CREZ Lease, the FERC Lease and any other leases of transmission and distribution and related assets to a Qualified Lessee under
which the Company or any Subsidiary of the Company is a party as a lessor, and
(ii) any lease of transmission and distribution and related assets pursuant to which Sharyland is the lessee and a Subsidiary of Sharyland or another Person
Controlled by one or more Hunt Family Members is the lessor; provided, no such lease will qualify as a “Lease” hereunder if
each of the three following criteria apply: (x) Sharyland is the lessee,
(y) cash rental payments have become due and payable pursuant thereto, and
(z) none of the Company, a Subsidiary of the Company or a Subsidiary of Sharyland is the lessor. 

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any
interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person, in each case in
the nature of a security interest of any kind whatsoever. 
 “Material Adverse Effect” means a material adverse effect upon
and/or material adverse developments with respect to (a) the operations, business, assets, properties, liabilities or financial condition of the Company and its Subsidiaries (taken as a whole), (b) the ability of the Company to perform its
obligations under this Agreement, the Notes, and the Security Documents; (c) the validity or enforceability of the Notes, this Agreement or any other material Financing Document or the rights or remedies of the Holders hereunder or thereunder
or (d) the validity, perfection or priority of the Collateral Agent’s Liens on any material Collateral. 
 “Maturity
Date” means December 30, 2020. 
 “McAllen Lease” shall mean (A) prior to the effectiveness of the McAllen Lease Amendment and Restatement, the Second
Amended and Restated Master System Lease Agreement, dated as of July 1, 2012, between SDTS, as lessor, and Sharyland, as lessee, and (B) upon the effectiveness of the McAllen Lease Amendment and Restatement, the McAllen Lease Amendment and Restatement, as such lease may be amended, restated, supplemented or otherwise
modified from time to time, or any new lease entered into in replacement thereof. 

  
 Schedule B-9 

(To Note Purchase Agreement) 

 “McAllen Lease Amendment and
Restatement” the Third Amended and Restated Master System Lease
Agreement (McAllen System), between SDTS, as lessor, and Sharyland, as lessee. 

“Member” means InfraREIT Partners, LP, a Delaware limited partnership. 

“Member Administrative Agent” means Bank of America, N.A., in its capacity as administrative agent under the Member Credit
Agreement, or any successor administrative agent 
 “Member Credit Agreement” means that certain Credit Agreement dated as
of January 3, 2014 among the Member, as borrower, the Member Administrative Agent, as administrative agent, and the other lenders, agencies and institutions from time to time party thereto. 

“Membership Collateral” is defined and described in the Pledge Agreement 

“Minimum Debt Service Reserve Requirement” means, on any date, scheduled principal plus interest payable on the Notes on the
two Payment Dates following such date. 
 “Moody’s” means Moody’s Investors Service, Inc. 

“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3)
of ERISA). 
 “NAIC” means the National Association of Insurance Commissioners or any successor thereto. 

“New Project” means any transmission or distribution project, including any such project acquired or built by a Project
Finance Subsidiary, any
“Footprint Project” (as defined in the Leases) that the Company or any
Subsidiary of the Company funds pursuant to a Lease and any such project that InfraREIT or a Subsidiary thereof acquires pursuant to the Development Agreement. 

“Non-Recourse Debt” means Indebtedness of a Project Finance Subsidiary that, if
secured, is secured solely by a pledge of collateral owned by that Project Finance Subsidiary and the ownership interests in such Project Finance Subsidiary and for which no Person other than such Project Finance Subsidiary is personally liable.

 “Notes” is defined in Section 1. 

“O&M
Costs” is defined in the SDTS 2010 Note Agreement, it being
understood that each reference to the “Company” in such definition is a reference to SDTS.

 “Obligation” means any loan, advance, debt, liability, and obligation of performance, howsoever arising, owed by
the Company to the Collateral Agent or the Holders of any kind or description (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising, pursuant to the terms of this Agreement, any Note or any of the 

  
 Schedule B-10 

(To Note Purchase Agreement) 

 
other Financing Documents, including all principal, interest, Yield-Maintenance Amounts, fees, charges, expenses, attorneys’ fees and accountants fees payable or reimbursable by the Company
under this Agreement or any of the other Financing Documents. 
 “OFAC” means the Office of Foreign Assets Control,
United States Department of the Treasury. 
 “OFAC Listed Person” means a Person whose name appears on the list of
Specially Designated Nationals and Blocked Persons published by OFAC. 
 “OFAC Sanctions Program” shall mean any
economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx. 

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose
responsibilities extend to the subject matter of such certificate. 

“Oncor”
means Oncor Electric Delivery Company LLC, a Delaware limited liability company, and its successors. 

“Operating Cash
Flow” means, with respect to
any Person, for any period, the operating cash flow of such Person, as determined in accordance with GAAP, as set forth on
the most recently delivered statement of cash flows of such Person (which, for the avoidance of doubt, shall be calculated net of interest expense of such Person for such period). 

“Payment Date” means October 15, 2010 and the 15th day of January, April, July and October thereafter up to the
Maturity Date, and the Maturity Date. 
 “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in
ERISA or any successor thereto. 
 “Permit” means any action, approval, consent, waiver, exemption, variance, franchise,
order, permit, authorization, right or license of or from a Governmental Authority, provided that interests or estates in real property, shall not be considered Permits. 

“Permitted
Affiliate
Loan”
means, without duplication, loans made by
Oncor or any of its Subsidiaries to the Company or a Subsidiary thereof from time to time on
an unsecured basis; provided that
(a) such
loans are subordinated
to the
Obligations hereunder (and under the SDTS 2009 Note Agreement and the SDTS 2010 Note Agreement) pursuant to
the Subordination Terms set forth on Exhibit 2 and (b) after giving effect to any such loan, the Company shall be in
pro forma compliance with the financial covenants contained in Section 9.6 of this
Agreement. 

“Permitted Investment” means any (a) marketable direct obligation of the United States of America, (b) marketable
obligation directly and fully guaranteed as to interest and principal by the United States of America, (c) demand deposit with Depositary, or time deposit, certificate of deposit and banker’s acceptance issued by any member bank of the
Federal Reserve System which is organized under the laws of the United States of America or any state thereof or any United States branch of a foreign bank, in each case whose equity capital is in excess of

  
 Schedule B-11 

(To Note Purchase Agreement) 

 
$500,000,000 and whose long-term debt securities are rated “A” or better by S&P and “A2” or better by Moody’s, (d) commercial paper or tax exempt obligations
given the highest rating by Moody’s and S&P, (e) obligations of a commercial bank described in clause (c) above, in respect of the repurchase of obligations of the type as described in clauses (a) and (b) hereof,
provided that such repurchase obligation shall be fully secured by obligations of the type described in said clauses (a) and (b) and the possession of such obligation shall be transferred to, and segregated from other obligations
owned by, any such bank, (f) instrument rated “AAA” by S&P and “Aaa” by Moody’s issued by investment companies and having an original maturity of 180 days or less, (g) eurodollar certificates of deposit
issued by any bank described in clause (c) above, and (h) marketable security rated not less than “A-1” by S&P or not less than
“Prime-1” by Moody’s. In no event shall Permitted Investments include any obligation, certificate of deposit, acceptance, commercial paper or instrument which by its terms matures (A) more
than 180 days after the date of investment, unless a bank meeting the requirements of clause (c) above shall have agreed to repurchase such obligation, certificate of deposit, acceptance, commercial paper or instrument at its purchase
price plus earned interest within no more than 90 days after its purchase thereunder or (B) after the next Payment Date. 

“Permitted Lien” is defined in Section 10.5. 

“Permitted Secured Indebtedness” means all Indebtedness of the Company incurred pursuant to Sections 10.6(a) and (c).

 “Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated
organization, business entity or Governmental Authority. 
 “Plan” means an “employee benefit plan” (as defined
in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by
the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability. 
 “Pledge
Agreement” is defined in Section 4.12(b). 
 “Preferred Stock” means any class of
capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person. 

“Project Finance Subsidiary” means a special purpose Subsidiary of a Person created to develop a New Project and to finance
such New Project solely with Non-Recourse Debt and equity
(including, for the avoidance of doubt, CV Project Entity, L.L.C. and the GS Project Entity.which
shall exclude any Subsidiary that has become
a Subsidiary of the Company
in accordance with Section 9.5 of the SDTS 2009 Note Agreement and the SDTS 2010 Note Agreement). 
 “property” or “properties” means, unless otherwise
specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. 
 “PTE” is
defined in Section 6.2(a). 

  
 Schedule B-12 

(To Note Purchase Agreement) 

 “Purchaser” is defined in the first paragraph of this Agreement. 

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning of
such term as set forth in Rule 144A(a)(1) under the Securities Act. 

“Qualified
Lessee” means Sharyland and/or any other utility that is
(x) approved or authorized by the applicable public utility commission or similar regulatory authority to operate and/or lease the transmission
and/or distribution assets of the Company or any Subsidiary and (y) a party to a then-effective lease agreement with the Company or a Subsidiary
thereof pursuant to which such utility leases and operates such
entity’s transmission and/or distribution assets. 

“Qualified Lessee Affiliate Loan” means loans made
by InfaREIT Partners, LP or a Subsidiary thereof to Qualified Lessees from time to
time on terms (x) in an aggregate principal amount not to exceed $10,000,000 at
any time outstanding as long as the use of proceeds of such loans is limited
to the acquisition or financing of equipment or other assets used in the Qualified
Lessee’
s operation or lease of transmission or distribution assets from the Company or a Subsidiary thereof pursuant to a Lease. 

“Qualifying
IPO” means an initial public offering of the equity interests of
InfraREIT. 
 “RBC” means Royal Bank of Canada, a Canadian
banking institution. 
 “RBC Agreement” means that certain Third Amended and Restated Credit Agreement, dated
December 10, 2014, among SDTS, as Borrower, RBC, as administrative agent, and the lenders and other institutions from time to time party thereto, as amended, restated, supplemented or otherwise modified from time to time. 

“Related Fund” means, with respect to any Holder of any Note, any fund or entity that (i) invests in Securities or bank
loans, and (ii) is advised or managed by such Holder, the same investment advisor as such Holder or by an Affiliate of such Holder or such investment advisor. 

“Required Holders” means, at any time, the Holders of at least 51% in principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Company or any of its Affiliates). 
 “Required Permit” is defined in
Section 5.10. 
 “Requirements of Law” means as to any Person, the certificate of incorporation
or formation and by-laws or partnership or operating agreement or other organizational or governing documents of such Person, and any local, state or Federal law, regulation, rule, ordinances or determination,
interpretation or order of an arbitrator or a court or other Governmental Authority, and any Required Permit, in each case applicable to or binding upon such Person or any of its properties or its business or to which such Person or any of its
properties or its business is subject. 
 “Responsible Officer” means any Senior Financial Officer and any other officer of
the Company with responsibility for the administration of the relevant portion of this Agreement. 

  
 Schedule B-13 

(To Note Purchase Agreement) 

 “Restricted Payment Conditions” is defined in
Section 10.9. 
 “ROFO Transfer” means the sale and transfer to Persons Controlled by one or more Hunt Family Members of any assets located in the Texas Panhandle related to the CREZ Project that are categorized as ROFO
projects under the Development Agreement with an aggregate fair market value not to exceed $5,000,000. 

“SDTS” means Sharyland Distribution & Transmission Services, L.L.C. 

“SDTS 2009 Note Agreement” means the Amended and Restated Note Purchase Agreement, dated September 14, 2010, among SDTS
and the holders from time to time of SDTS’s 7.25% Senior Notes due December 30, 2029 issued thereunder, as amended, restated, supplemented and otherwise modified from time to time. 

“SDTS 2010 Note Agreement” means the Amended and Restated Note Purchase Agreement, as amended and restated as of the dated
the date hereof, among SDTS and the purchasers named therein, pursuant to which SDTS will sell, and such purchasers will purchase, SDTS’s 6.47% Senior Notes due September 30, 2030, as amended, restated, supplemented and otherwise modified
from time to time. 
 “SEC” shall mean the Securities and Exchange Commission of the United States, or any successor
thereto. 
 “Second Amendment Date” means December 10, 2014. 

“Secured Parties” means, from time to time, the Holders and all other Secured Parties (as defined in the Collateral Agency
Agreement) from time to time. 
 “Securities” or “Security” shall have the meaning specified in
Section 2(1) of the Securities Act. 
 “Securities Act” means the Securities Act of 1933, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect. 
 “Security Agreement” is defined
in Section 4.12(a). 
 “Security Documents” means the Security Agreement, the Pledge Agreement,
the Depositary Agreement, the Deposit Account Control Agreement, the Collateral Agency Agreement, the 2014 Joinder Agreement, and any other security documents, financing statements and the like filed or recorded in connection with the foregoing.

 “Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of
the Company or the Member, as applicable. 
 “Sharyland” means Sharyland Utilities, L.P., a Texas limited partnership. 

“SP” shall
mean Sharyland Projects, L.L.C., a Project Finance Subsidiary of SDTS. 

  
 Schedule B-14 

(To Note Purchase Agreement) 

 “Structuring Fee” is defined in Section 4.7. 

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such
first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions)
of such second Person and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries
(unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Company and, prior to the completion of the
FERC Merger, shall include the FERC Owner. Prior to the completion of the FERC Merger, all references herein to a Subsidiary of Sharyland shall include the FERC
Operator. 
 “SVO” means the Securities Valuation Office
of the NAIC or any successor to such Office. 
 “Swap Contract” means (a) any and all interest rate swap transactions,
basis swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or
options or forward foreign exchange transactions, cap transactions, floor transactions, currency options, spot contracts or any other similar transactions or any of the foregoing (including, but without limitation, any options to enter into any of
the foregoing), and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives
Association, Inc., or any International Foreign Exchange Master Agreement. 
 “Swap Termination Value” means, in respect of
any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination
value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amounts(s) determined as the
mark-to-market values(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts. 
 “Synthetic Lease” means, at any time, any lease
(including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased
for U.S. Federal income tax purposes, other than any such lease under which such Person is the lessor. 
 “System”
means the Company’s and/or any Subsidiary’s (other than a Project Finance Subsidiary’s) integrated electrical transmission and distribution facilities located primarily in the State of Texas (which, as of the effective date of the Fourth Amendment to this Agreement, consists of approximately 675 line miles (or approximately 1,225
circuit miles) of 345 kV 

  
 Schedule B-15 

(To Note Purchase Agreement) 

 
transmission lines, approximately 350 line/circuit miles of 138 kV transmission lines, and approximately 50 transmission stations which are located in 33
counties of Texas, primarily in the Panhandle and West Texas regions) and the systems and other property
necessary to operate the transmission and distribution facilities, and all improvements to and expansions of such facilities, and each New Project (upon its completion) owned by the Company or a Subsidiary; provided that, for purposes hereof,
“System” shall not be deemed to include any easements held by the Company or any Subsidiary. 
 “System Leases” means (i) the
McAllen Lease, (ii) the Stanton/Brady/Celeste Lease (iii) upon the effectiveness thereof, the Lease Agreement (ERCOT Transmission Assets), between
SDTS, as lessor, and Sharyland, as lessee, (iv) upon the completion
of the FERC Merger, the FERC Lease and (v) any and all other Leases and supplements thereto in connection with the System and the transmission and distribution facilities ancillary thereto and any easements associated
therewith, in the case of each of the foregoing clauses (i) through (v), as amended, restated, supplemented or otherwise modified from time to time, or any
new lease entered into in replacement
thereof. 

“Total Debt” means, with respect to the Company, all Indebtedness of the Company on a consolidated basis; provided,
however, that for purposes of calculating the Company’s Total Debt to Capitalization Ratio, the Company’s Total Debt shall exclude
(a) Non-Recourse Debt of a Project
Finance Subsidiary of SDTS and, (b) that portion of the Swap Termination Value defined in clause (b) of the definition of “Swap Termination Value” and
shall include Indebtedness of Sharyland on a consolidated basis (excluding Non-Recourse Debt of a Project Finance Subsidiary of Sharyland)(c) any Permitted Affiliate Loan. 

“Total Debt to Capitalization Ratio” means, with respect to the Company, (a) the Total Debt, divided by (b) the sum
of (i) Total Debt plus (ii) the Company’s Consolidated Net Worth for such period plus
(iii) if positive, Sharyland’s Consolidated Net Worth for such period. 

“Transfer” means, with respect to any item, the sale, exchange, conveyance, lease, transfer or other disposition of such
item. 
 “UCC Collateral” means the Collateral that is of a type in which a valid security interest can be created under
Article 8 or Article 9 of the Uniform Commercial Code as in effect in New York. 
 “U.S. Economic Sanctions”
shall mean United States economic sanctions, including but not limited to, the Trading with the Enemy Act, the International Emergency Economic Powers Act, CISADA or any similar law or regulation with respect to Iran or any other country, the
Sudan Accountability and Divestment Act, any OFAC Sanctions Program, or any economic sanctions regulations administered and enforced by the United States or any enabling legislation or executive order relating to any of the foregoing. 

“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 

  
 Schedule B-16 

(To Note Purchase Agreement) 

 “Wholly-Owned Subsidiary” means, at any time, any Subsidiary at least 90%
of all of the common equity and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries. 

“Yield-Maintenance Amount” is defined in Section 8.6. 

  
 Schedule B-17 

(To Note Purchase Agreement)EX-10.2

 Exhibit 10.2 

EXECUTION VERSION 

CONSENT AND SIXTH AMENDMENT 

TO NOTE PURCHASE AGREEMENT 

This CONSENT AND SIXTH AMENDMENT TO NOTE PURCHASE AGREEMENT, dated as of December 21, 2018 (this “Amendment”) amends that
certain Amended and Restated Note Purchase Agreement, dated as of July 13, 2010 (as amended, restated, amended and restated or otherwise modified prior to the date hereof, the “Agreement”), by and among SHARYLAND
DISTRIBUTION & TRANSMISSION SERVICES, L.L.C. (the “Company”) and the holders of the notes issued thereunder (“Holders”). Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Agreement (as amended by this Amendment) and the rules of interpretation set forth therein shall apply to this Amendment. 

RECITALS 
 WHEREAS, the Company
and the Holders are parties to the Agreement; 
 WHEREAS, InfraREIT Partners, LP (“InfraREIT Partners”), a Delaware limited
partnership and an indirect parent of the Company, and InfraREIT, Inc. (“InfraREIT”), the general partner of InfraREIT Partners, have entered into that certain Agreement and Plan of Merger (the “Merger Agreement”),
with Oncor Electric Delivery Company LLC (“Oncor”), 1912 Merger Sub LLC (“Merger Sub”) and Oncor T&D Partners, LP (“Merger Partnership”), pursuant to which the parties thereto will effect a business
combination through (i) a merger of InfraREIT with and into Merger Sub, with Merger Sub being the surviving entity (the “InfraREIT Merger”), (ii) a contribution (the “Affiliate Contribution”) by such
surviving entity of a 1% limited partnership interest in InfraREIT Partners to an affiliate of Oncor, and (iii) immediately following the consummation of the InfraREIT Merger and the Affiliate Contribution, a merger of Merger Partnership with
and into InfraREIT Partners, with InfraREIT Partners being the surviving entity (together with the InfraREIT Merger, the “Mergers”), in each case, on the terms and subject to the conditions set forth in the Merger Agreement; 

 WHEREAS, concurrently with the execution and delivery of the Merger Agreement, the Company entered into an Agreement and Plan of Merger
(the “Asset Exchange Agreement”), with Sharyland Utilities, L.P. (“Sharyland”) and Oncor, upon the terms and subject to the conditions of which, among other things, (i) Sharyland will allocate to and vest in
the Company, and the Company will accept and assume, through the joint survivor merger of Sharyland and the Company provided for in the Asset Exchange Agreement (the “SU-SDTS Merger”), the NTX
Package (as defined in the Asset Exchange Agreement) and (ii) the Company will allocate to and vest in Sharyland, and Sharyland will accept and assume, through the SU-SDTS Merger, the STX Package (as
defined in the Asset Exchange Agreement); 
 WHEREAS, the Company owns certain real property and other assets that it leases to Sharyland
pursuant to the SU/SDTS Leases (as defined in the Asset Exchange Agreement); 

 WHEREAS, concurrently with the execution and delivery of the Asset Exchange Agreement,
InfraREIT, InfraREIT Partners and the Company entered into an Omnibus Termination Agreement (the “Omnibus Termination Agreement”), with Hunt Consolidated, Inc., Hunt Transmission Services, L.L.C., Electricity Participant
Partnership, L.L.C. and Hunt Utility Services, LLC (collectively, “Hunt”) and Sharyland, upon the terms and subject to the conditions of which, among other things, the Management Agreement (as defined in the Omnibus Termination
Agreement) and the SU/SDTS Leases will be terminated (collectively, the “Contract Terminations”) in exchange for the payment of the Termination Amount (as defined in the Omnibus Termination Agreement) effective immediately upon the
Closing (as defined in the Asset Exchange Agreement); 
 WHEREAS, Sharyland holds limited liability company interests in, and is the
managing member of, the Company; 
 WHEREAS, pursuant to the Asset Exchange Agreement, immediately prior to the Effective Time (as defined
in the Asset Exchange Agreement), all of Sharyland’s equity interests in the Company will be cancelled (the “Equity Cancellation”, including all of its limited liability company interests and related economic interests in the
Company, causing the Company to become a wholly owned, indirect subsidiary of InfraREIT Partners; 
 WHEREAS, Sharyland and SU Investment
Partners, L.P., a Texas limited partnership have entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with Sempra Texas Utilities Holdings I, LLC (“Purchaser”) and Sempra Energy pursuant to which,
immediately following the Equity Cancellation, the SU-SDTS Merger and the Mergers, Purchaser will purchase a 50% limited partnership interest in Sharyland Holdings L.P., which will own a 100% interest in
Sharyland (together with the Contract Terminations, the Mergers, the SU-SDTS Merger, the Equity Cancellation and all other transactions contemplated by the Merger Agreement, the Asset Exchange Agreement and
the Securities Purchase Agreement, collectively, the “Transactions”); 
 WHEREAS, pursuant to the Agreement (including in
particular Section 9.8), the Company is required to, among other things, maintain in full force and effect the SU/SDTS Leases and comply with various requirements, restrictions and limitations relating to the SU/SDTS Leases, Sharyland (as a
Qualified Lessee in respect of the SU/SDTS Leases), the ownership of Sharyland and other related provisions (the “Subject Provisions”); and 

WHEREAS, the Company has requested, and the Holders party hereto have agreed subject to the terms and conditions hereof to, notwithstanding
anything to the contrary in the Note Documents in connection with the Transactions, amend the Agreement to remove the Subject Provisions, as more particularly set forth in Annex A hereto. 

NOW THEREFORE, in consideration of the mutual agreement herein contained and other good and valuable consideration, receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Consent under Agreement. In accordance with
Section 17.1 of the Agreement, the Holders party hereto hereby consent to the Transactions and the execution and delivery of the documents referenced herein and agree that no breach, violation, Default or Event of Default shall be deemed to
arise, nor shall any make-whole or mandatory prepayment be due and payable, under the Note Documents as a result of the Transactions closing on or prior to the Closing Date (as defined in the Merger Agreement); provided that, the consent contained
in this Section 1 shall only be relied upon for the specific purpose set forth herein and shall not constitute a custom or course of dealing among the parties hereto, nor shall it be deemed a consent to or waiver of any other Default or Event
of Default. 

  
 2 

 2. Amendments to the Agreement. The Agreement is hereby amended to delete the
stricken text (indicated textually in the same manner as the following example: stricken text) and to add the bold underlined text (indicated textually in the same manner in the following example: underlined text), as
set forth in the Agreement as attached hereto as Annex A, which amendments shall become effective upon (a) the execution and delivery of the Closing Certificate (attached hereto as Exhibit A) by the Company to the Holders (which shall be deemed
to occur upon posting thereof on IntraLinks or similar website to which Holders have access) and (b) payment by the Company to each holder of Notes its pro rata share of an aggregate amendment fee for all Notes equal to $892,144.92. 

3. Conditions to the Effective Date. This Amendment shall become effective as of the first date upon which each of the following
conditions have been satisfied: 
  

	 	a.	 executed counterparts of this Amendment, duly executed by the Company and the Holders party hereto, shall have
been delivered to the Holders party hereto; 

  

	 	b.	 the representations and warranties of the Company set forth in Section 4 hereof are true and correct in
all material respects on and as of the date hereof, except to the extent that such representation or warranty expressly relates to an earlier date (in which event such representation or warranty was true and correct in all material respects as of
such earlier date); 

  

	 	c.	 the fees and expenses of Chapman and Cutler LLP, counsel to the Holders, shall have been paid by the Company,
in connection with the negotiation, preparation, approval, execution and delivery of this Amendment in accordance with the terms of the Agreement and to the extent a written invoice with respect thereto (with related backup documentation) shall have
been delivered to the Company at least 2 business days prior thereto; and 

  

	 	d.	 each Holder shall have received copies of substantially similar consent and amendment agreements relating to
(i) the Amended and Restated Note Purchase Agreement dated September 14, 2010 between the Company and the purchasers listed in Schedule A attached thereto and (ii) the Amended and Restated Note Purchase Agreement dated July 13,
2010 among Transmission and Distribution Company, L.L.C, and the purchasers listed in Schedule A attached thereto. 

  
 3 

 4. Representations and Warranties of the Company. In order to induce the Holders
party hereto to enter into this Amendment, the Company hereby represents and warrants that: 
  

	 	a.	 The Company has the requisite power and authority to execute, deliver and carry out the terms and provisions of
this Amendment and has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of this Amendment. The Company has duly executed and delivered this Amendment, and this Amendment (and each Note
Document as amended by the Amendment) constitutes the legal, valid and binding obligation of the Company enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 

 

	 	b.	 The execution, delivery and performance by the Company of this Amendment do not and will not
(i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease,
corporate charter or limited partnership or limited liability company agreement, or any other agreement or instrument to which the Company is bound or by which the Company or any of its properties may be bound or affected, (ii) conflict with or
result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or (iii) violate any provision of any statute or other rule
or regulation of any Governmental Authority applicable to the Company, which in the case of any of the foregoing clauses (i) through (iii), individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

  

	 	c.	 No consent, approval or authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance by the Company of this Amendment other than those that have been made or obtained prior to the date hereof. Upon the occurrence of the Transactions, the Company will own
or possess all governmental and third party licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that are material to the ownership, leasing,
operating and maintenance of the System, including the applicable Certificates of Convenience and Necessity issued by the Public Utility Commission of Texas without known conflict with the rights of others. 

 

	 	d.	 No Default or Event of Default has occurred and is continuing on the date hereof or after giving effect to this
Amendment. 

  

	 	e.	 Following the effectiveness of this Amendment, the consummation of the Transactions will not result in any
breach, violation, Default or Event of Default under the Note Documents and the resulting termination of REIT status of InfraREIT will not result in a Material Adverse Effect. 

  
 4 

	 	f.	 This Amendment and the other documents, certificates or other writings delivered to the Holders by or on behalf
of the Company, in connection with this Amendment and the Transactions, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of
the circumstance under which they were made. The projections and pro forma financial information contained in the materials referenced above are based upon good faith estimates and assumptions believed by management of the Company to be reasonable
at the time made and on the date hereof, it being recognized by each Holder that such financial information as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such financial
information may differ from the projected results set forth therein by a material amount. 

  

	 	g.	 The security interests in the Collateral granted to the Collateral Agent (for the benefit of the Secured
Parties) pursuant to the Financing Documents: (a) constitute as to personal property included in the Collateral and, with respect to subsequently acquired personal property included in the Collateral, will constitute, a perfected security
interest and Lien under each applicable Uniform Commercial Code, and (b) are, and, with respect to such subsequently acquired property, will be, as to Collateral perfected under each applicable Uniform Commercial Code, superior and prior to the
rights of all third Persons now existing or hereafter arising whether by way of mortgage, lien, security interests, encumbrance, assignment or otherwise, except for Permitted Liens. All action as is necessary has been taken to establish and perfect
the Collateral Agent’s rights in and to, and the first lien priority of its Lien on, the Collateral, including any recording, filing, registration, delivery to the Collateral Agent, giving of notice or other similar action.

 5. Continuing Effect of Financing Documents. Except as expressly set forth herein, this Amendment shall not
constitute an amendment or waiver of any provision of any Note Document and shall not be construed as an amendment, waiver or consent to any further or future action on the part of the Company that would require an amendment, waiver or consent under
any Note Document. Except as expressly amended hereby, the provisions of the Note Documents are and shall remain in full force and effect. This Amendment shall be deemed a Note Document for purposes of the Agreement. 

6. Fees. In accordance with Section 15.1 of the Agreement, the Company shall pay the fees, charges and disbursements of special
counsel to the Holders in connection with this Amendment. 
 7. Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by
all the parties hereto shall be lodged with the Company and the Holders party hereto. Delivery of an executed counterpart of a signature page to this Amendment by telecopy or electronic transmission shall be effective as the delivery of a manually
executed counterpart of this Amendment. 

  
 5 

 8. Severability. If any provision of this Amendment is held to be illegal, invalid or
unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 9. Integration. This Amendment and the other Note
Documents represent the agreement of the Company and the Holders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Company or any Holder relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Note Documents. 
 10. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

11. Interpretation. The execution and delivery of this Amendment and performance of the Note Documents shall not, except as expressly
provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the Holders under, the Note Documents. 

12. Subsidiary Guarantors. Each Subsidiary Guarantor acknowledges that its consent to this Third Amendment is not required, but each
Subsidiary Guarantor nevertheless hereby agrees and consents to this Amendment and to the documents and agreements referred to herein. Each Subsidiary Guarantor agrees and acknowledges that (i) notwithstanding the effectiveness of this
Amendment, each Subsidiary Guaranty (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time) shall remain in full force and effect without modification thereto, and (ii) nothing herein shall in
any way limit any of the terms or provisions of each Subsidiary Guaranty executed by any Subsidiary Guarantor (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time), all of which are hereby ratified,
confirmed and affirmed in all respects. Each Subsidiary Guarantor hereby agrees and acknowledges that no other agreement, instrument, consent or document shall be required to give effect to this section. Each Subsidiary Guarantor hereby
further acknowledges that the Subsidiary Guarantor may from time to time enter into any further amendments, modifications, terminations and/or waivers of any provisions of the Agreement without notice to or consent from any Subsidiary Guarantor and
without affecting the validity or enforceability of any Subsidiary Guaranty (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time) giving rise to any reduction, limitation, impairment, discharge or
termination of any Subsidiary Guaranty (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time). 

  
 6 

 [Signatures on Following Pages] 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written. 
  

			
	COMPANY
	
	 SHARYLAND DISTRIBUTION &

TRANSMISSION SERVICES, L.L.C.

		
	By:	 	/s/ Brant Meleski
	Name:	 	Brant Meleski
	Title:	 	 Senior Vice President and
 Chief Financial
Officer

 Signature Page to Consent and Sixth Amendment to Note Purchase Agreement 

(2010 Note Purchase Agreement) 

 
			
	 THE PRUDENTIAL INSURANCE COMPANY

OF AMERICA, as a Holder

		
	By:	 	/s/ Wendy Carlson
	Name:	 	Wendy Carlson
	Title:	 	Vice President

  

					
	 PRUDENTIAL RETIREMENT INSURANCE

AND ANNUITY COMPANY, as a Holder

		
	By:	 	PGIM Inc., as investment manager

 
			
		
	        By:	 	/s/ Wendy Carlson
	        Name:	 	Wendy Carlson
	        Title:	 	Vice President

 Signature Page to Consent and Sixth Amendment to Note Purchase Agreement 

(2010 Note Purchase Agreement) 

 EXHIBIT A 

Closing Certificate 
 [see
attached] 

 CLOSING CERTIFICATE 

[     ], 2019 

Reference is made to: 
  

	 	(A)	 that certain Amended and Restated Note Purchase Agreement dated as of July 13, 2010 (as amended, restated,
supplemented and otherwise modified from time to time, the “2010 NPA”) among Sharyland Distribution & Transmission Services, L.L.C. (the “Company”) and the holders of the notes issued thereunder (the
“Holders”); and 

  

	 	(B)	 that certain Consent and Sixth Amendment to the 2010 NPA (the “Amendment”), dated as of
December 21, 2018, among the Company and the Holders party thereto (capitalized terms used herein but not otherwise defined shall have the respective meanings provided such terms in the Amendment or the 2010 NPA, as applicable).

 The undersigned,
[                        ], an authorized signatory of the Company, certifies on behalf of the Company, in such capacity and not
individually, that the Equity Cancellation has occurred simultaneously with delivery of this Closing Certificate and the other Transactions will occur on the date hereof substantially in accordance with the terms of the Merger Agreement and the
Asset Exchange Agreement (each, in the form publicly filed on or prior to the date of the Amendment), but without giving effect to any amendments, waivers or consents by the Company that are materially adverse to the interests of the Holders
(without the consent of the Required Holders, not to be unreasonably withheld or delayed). Accordingly, the amendments to the 2010 NPA set forth in Section 2 of the Amendment are effective as of the date hereof 

[SIGNATURE PAGE TO FOLLOW] 

 IN WITNESS WHEREOF, the undersigned has caused this Closing Certificate to be duly executed
and delivered by its proper and duly authorized officer as of the day and year first above written. 
  

			
	 SHARYLAND DISTRIBUTION &

TRANSMISSION SERVICES, L.L.C.

		
	By:	 	    
	Name:
	Title:

 Signature Page to Closing Certificate under Consent and Sixth Amendment to Note Purchase Agreement 

(2010 Note Purchase Agreement) 

 ANNEX A 

Amended and Restated Note Purchase Agreement, as amended by Consent and Sixth Amendment 

[see attached] 

 ANNEX A 
  

 
  

SHARYLAND DISTRIBUTION & TRANSMISSION SERVICES, L.L.C. 

$110,000,000 
 6.47% Senior Notes
due September 30, 2030 
  
  

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT 

 
  

Dated July 13, 2010, 
 AS
AMENDED BY: 
 FIRST AMENDMENT DATED AS OF JUNE 9,
2011 
 SECOND AMENDMENT DATED AS OF OCTOBER 15,
2013 
 THIRD AMENDMENT DATED AS OF DECEMBER 10,
2014 
 FOURTH AMENDMENT DATED AS OF SEPTEMBER 28,
2015 
 AND

 FIFTH AMENDMENT DATED AS OF November 1, 2017 

AND 

SIXTH AMENDMENT DATED AS OF
[•] 
  
  

 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
		
	 SECTION 1.     AUTHORIZATION OF NOTES
	  	 	2	 
		
	 SECTION 2.     SALE AND PURCHASE OF NOTES
	  	 	2	 
		
	 SECTION 3.     CLOSING
	  	 	2	 
		
	 SECTION 4.     CONDITIONS TO CLOSING
	  	 	3	 
				
		 	Section 4.1	  	Representations and Warranties	  	 	3	 
		 	Section 4.2	  	Performance; No Default	  	 	3	 
		 	Section 4.3	  	Compliance Certificates	  	 	3	 
		 	Section 4.4	  	Opinions of Counsel	  	 	3	 
		 	Section 4.5	  	Purchase Permitted By Applicable Law, Etc	  	 	4	 
		 	Section 4.6	  	Sale of Other Notes	  	 	4	 
		 	Section 4.7	  	Payment of Special Counsel and Other Fees and Expenses	  	 	4	 
		 	Section 4.8	  	Private Placement Number	  	 	4	 
		 	Section 4.9	  	Changes in Structure	  	 	4	 
		 	Section 4.10	  	Funding Instructions	  	 	4	 
		 	Section 4.11	  	Proceedings and Documents	  	 	4	 
		 	Section 4.12	  	Joinder Agreement, Etc	  	 	6	 
		 	Section 4.13	  	UCC Searches; and Litigation Searches	  	 	6	 
		 	Section 4.14	  	Insurance	  	 	6	 
		 	Section 4.15	  	Financial Statements	  	 	7	 
		 	Section 4.16	  	Consents and Approvals	  	 	7	 
		
	 SECTION 5.     REPRESENTATIONS AND WARRANTIES OF THE
COMPANY
	  	 	7	 
				
		 	Section 5.1	  	Organization; Power and Authority	  	 	7	 
	             
	 	Section 5.2	  	Authorization, Etc	  	 	7	 
		 	Section 5.3	  	Disclosure	  	 	7	 
		 	Section 5.4	  	Organization and Ownership of Interests	  	 	8	 
		 	Section 5.5	  	Financial Statements; Material Liabilities	  	 	8	 
		 	Section 5.6	  	Compliance with Laws, Other Instruments, Etc	  	 	9	 
		 	Section 5.7	  	Governmental Authorizations, Etc	  	 	9	 
		 	Section 5.8	  	Litigation; Observance of Agreements, Statutes and Orders	  	 	9	 
		 	Section 5.9	  	Taxes	  	 	9	 
		 	Section 5.10	  	Title to Property; Leases	  	 	10	 
		 	Section 5.11	  	Insurance	  	 	10	 
		 	Section 5.12	  	Licenses, Permits, Etc.; Material Project Documents	  	 	10	 
		 	Section 5.13	  	Compliance with ERISA	  	 	10	 
		 	Section 5.14	  	Private Offering by the Company	  	 	11	 
		 	Section 5.15	  	Use of Proceeds; Margin Regulations	  	 	11	 
		 	Section 5.16	  	Existing Indebtedness; Future Liens	  	 	11	 
		 	Section 5.17	  	Foreign Assets Control Regulations, Etc	  	 	12	 
		 	Section 5.18	  	Status under Certain Statutes	  	 	12	 

  
 Annex A- i 

(Amended and Restated Note Purchase Agreement) 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
				
		 	Section 5.19	  	Environmental Matters	  	 	13	 
		 	Section 5.20	  	Force Majeure Events; Employees	  	 	14	 
		 	Section 5.21	  	Collateral	  	 	14	 
		
	 SECTION 6.     REPRESENTATIONS OF THE PURCHASERS
	  	 	14	 
				
		 	Section 6.1	  	Purchase for Investment	  	 	14	 
		 	Section 6.2	  	Source of Funds	  	 	15	 
		
	 SECTION 7.     INFORMATION
	  	 	16	 
				
	             
	 	Section 7.1	  	Financial and Business Information	  	 	16	 
		 	Section 7.2	  	Officer’s Certificate	  	 	19	 
		 	Section 7.3	  	[Intentionally Omitted]	  	 	20	 
		
	 SECTION 8.     PAYMENT AND PREPAYMENT OF THE NOTES
	  	 	20	 
				
		 	Section 8.1	  	Amortization; Maturity	  	 	20	 
		 	Section 8.2	  	Optional Prepayments with Yield-Maintenance Amount	  	 	20	 
		 	Section 8.3	  	Allocation of Partial Prepayments	  	 	20	 
		 	Section 8.4	  	Maturity; Surrender, Etc	  	 	20	 
		 	Section 8.5	  	Purchase of Notes	  	 	21	 
		 	Section 8.6	  	Yield-Maintenance Amount	  	 	21	 
		
	 SECTION 9.     AFFIRMATIVE COVENANTS
	  	 	23	 
				
		 	Section 9.1	  	Compliance with Law	  	 	23	 
		 	Section 9.2	  	Insurance	  	 	23	 
		 	Section 9.3	  	Maintenance of Properties	  	 	24	 
		 	Section 9.4	  	Payment of Taxes and Claims	  	 	24	 
		 	Section 9.5	  	Existence, Etc	  	 	24	 
		 	Section 9.6	  	Books and Records; Inspection Rights	  	 	25	 
		 	Section 9.7	  	Collateral; Further Assurances	  	 	25	 
		 	Section 9.8	  	Material Project Documents	  	 	27	 
		 	Section 9.9	  	Financial Ratios	  	 	28	 
		
	 SECTION 10.   NEGATIVE COVENANTS
	  	 	28	 
				
		 	Section 10.1	  	Transactions with Affiliates	  	 	28	 
		 	Section 10.2	  	Merger, Consolidation, Etc	  	 	29	 
		 	Section 10.3	  	Line of Business	  	 	29	 
		 	Section 10.4	  	Terrorism Sanctions Regulations	  	 	29	 
		 	Section 10.5	  	Liens	  	 	30	 
		 	Section 10.6	  	Indebtedness	  	 	31	 
		 	Section 10.7	  	Loans, Advances, Investments and Contingent Liabilities	  	 	32	 
		 	Section 10.8	  	No Subsidiaries	  	 	34	 
		 	Section 10.9	  	Restricted Payments	  	 	34	 

  
 Annex A-ii 

(Amended and Restated Note Purchase Agreement) 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
				
	             
	 	Section 10.10	  	Sale of Assets, Etc	  	 	34	 
		 	Section 10.11	  	Sale or Discount of Receivables	  	 	36	 
		 	Section 10.12	  	Amendments to Organizational Documents	  	 	36	 
		 	Section 10.13	  	Sale and Lease-Back	  	 	37	 
		 	Section 10.14	  	ERISA Compliance	  	 	37	 
		 	Section 10.15	  	No Margin Stock	  	 	38	 
		 	Section 10.16	  	Project Documents	  	 	38	 
		 	Section 10.17	  	Regulation	  	 	38	 
		 	Section 10.18	  	Swaps	  	 	38	 
		 	Section 10.19	  	Additional Financial Covenants	  	 	39	 
		
	 SECTION 11.    EVENTS OF DEFAULT
	  	 	40	 
		
	 SECTION 12.   REMEDIES ON DEFAULT, ETC
	  	 	46	 
				
		 	Section 12.1	  	Acceleration	  	 	46	 
		 	Section 12.2	  	Other Remedies	  	 	47	 
		 	Section 12.3	  	Rescission	  	 	47	 
		 	Section 12.4	  	No Waivers or Election of Remedies, Expenses, Etc	  	 	47	 
		
	 SECTION 13.   REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	  	 	47	 
				
		 	Section 13.1	  	Registration of Notes	  	 	47	 
		 	Section 13.2	  	Transfer and Exchange of Notes	  	 	48	 
		 	Section 13.3	  	Replacement of Notes	  	 	49	 
		
	 SECTION 14.   PAYMENTS ON NOTES
	  	 	49	 
				
		 	Section 14.1	  	Place of Payment	  	 	49	 
		 	Section 14.2	  	Home Office Payment	  	 	49	 
		
	 SECTION 15. EXPENSES, ETC.
	  	 	50	 
				
		 	Section 15.1	  	Transaction Expenses	  	 	50	 
		 	Section 15.2	  	Survival	  	 	50	 
		
	 SECTION 16.   SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
AGREEMENT
	  	 	    	 
		
	 SECTION 17.   AMENDMENT AND WAIVER
	  	 	51	 
				
		 	Section 17.1	  	Requirements	  	 	51	 
		 	Section 17.2	  	Solicitation of Holders of Notes	  	 	51	 
		 	Section 17.3	  	Binding Effect, etc	  	 	51	 
		 	Section 17.4	  	Notes Held by Company, etc	  	 	52	 
		
	 SECTION 18.   NOTICES
	  	 	52	 

  
 Annex A-iii 

(Amended and Restated Note Purchase Agreement) 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
		
	 SECTION 19.   REPRODUCTION OF DOCUMENTS
	  	 	52	 
		
	 SECTION 20.   CONFIDENTIAL INFORMATION
	  	 	54	 
		
	 SECTION 21.   SUBSTITUTION OF PURCHASER
	  	 	55	 
		
	 SECTION 22.   MISCELLANEOUS
	  	 	55	 
				
	             
	 	Section 22.1	  	Successors and Assigns	  	 	55	 
		 	Section 22.2	  	Payments Due on Non-Business Days	  	 	55	 
		 	Section 22.3	  	Accounting Terms	  	 	55	 
		 	Section 22.4	  	Severability	  	 	56	 
		 	Section 22.5	  	Construction, etc	  	 	56	 
		 	Section 22.6	  	Counterparts	  	 	56	 
		 	Section 22.7	  	Governing Law	  	 	56	 
		 	Section 22.8	  	Jurisdiction and Process; Waiver of Jury Trial	  	 	56	 
		 	Section 22.9	  	Transaction References	  	 	57	 

  
 Annex A-iv 

(Amended and Restated Note Purchase Agreement) 

					
	SCHEDULE A	  	—	  	INFORMATION RELATING TO PURCHASERS
	SCHEDULE B	  	—	  	DEFINED TERMS
	Schedule 4.12(a)	  	—	  	Deeds of Trust
	Schedule 5.3	  	—	  	Disclosure Materials
	Schedule 5.4	  	—	  	Ownership of the Company, etc.; Officers
	Schedule 5.5	  	—	  	Financial Statements
	Schedule 5.7	  	—	  	Government Authorizations
	Schedule 5.12(a)	  	—	  	Required Permits
	Schedule 5.12(b)	  	—	  	Material Project Documents
	Schedule 5.13	  	—	  	ERISA
	Schedule 5.16	  	—	  	Indebtedness
	Schedule 8.1	  	—	  	Principal Amortization Schedule
	Schedule 9.2	  	—	  	Insurance
	Schedule 10.1	  	—	  	Cap Rock Transaction
	Schedule 10.20	  	—	  	Burdensome Agreements
	Exhibit 1	  	—	  	Form of 6.47% Senior Secured Note due September 30, 2030
	Exhibit 2	  	—	  	Form of Subordination Terms
	Exhibit 3	  	—	  	Form of Subsidiary Guaranty
	
	Security Documents
			
	Exhibit S-1	  	—	  	Form of Amended and Restated Collateral Agency Agreement
	Exhibit S-2	  	—	  	Form of Deed of Trust
	Exhibit S-3A	  	—	  	Form of Company Pledge Agreement
	Exhibit S-3B	  	—	  	Form of TDC Pledge Agreement
	Exhibit S-4	  	—	  	Form of Negative Pledge Agreement

  
 Annex A-v 

(Amended and Restated Note Purchase Agreement) 

 6.47% Senior Notes due September 30, 2030 

July 13, 2010 
 TO
EACH OF THE PURCHASERS LISTED IN 
 Schedule A
Hereto: 
 Ladies and Gentlemen: 
 Sharyland
Distribution & Transmission Services, L.L.C., a Texas limited liability company (the “Company”), agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and,
collectively, the “Purchasers”): 
 RECITALS 

WHEREAS, Hunt Transmission Services, L.L.C. (“Hunt”) entered into an Agreement and Plan of Merger, dated as of
December 17, 2009 (the “Acquisition Agreement”), pursuant to which HTS Acquisition Sub., Inc, a Delaware corporation and a wholly owned indirect subsidiary of Hunt (“Merger Sub”) merged with and into Cap Rock
Holding Corporation (“Holding”), a Delaware corporation, which owns directly or indirectly all of the capital stock of Cap Rock Energy Corporation, a Texas corporation (the acquisition and the transactions related therein, the
“Merger”); 
 WHEREAS, in connection with the Merger, Merger Sub entered into that certain Note Purchase Agreement, dated
as of July 13, 2010 (the “Acquisition Date”), among Merger Sub, as issuer, and the Purchasers, as purchasers thereunder, with respect to the issuance of 6.47% Senior Notes due September 30, 2030, in the aggregate principal
amount of $110,000,000 (the “Initial NPA”); 
 WHEREAS, Holding as the survivor of the merger with Merger Sub, succeeded to
and assumed by operation of law all of the rights, duties, obligations and liabilities of Merger Sub under the Initial NPA, and Holding has confirmed its obligations under the Initial NPA pursuant to that certain Ratification Agreement, dated the
Acquisition Date, executed by Holding in favor of the Purchasers; 
 WHEREAS, Cap Rock Energy Corporation, pursuant to and in accordance
with the Plan of Conversion, dated as of the Acquisition Date, was converted from a Texas corporation to a Texas limited liability company, as so converted Cap Rock Energy LLC (“CR Energy”); 

WHEREAS, pursuant to the Assumption Agreement, dated as of the Acquisition Date, between Holding and CR Energy, CR Energy, with the consent of
the Collateral Agent and the Purchasers, assumed all of the rights, duties, obligations and liabilities of Holding under the Initial NPA; 

  
 ANNEX A-1

 (Amended and Restated Note Purchase Agreement) 

 WHEREAS, pursuant to the Agreement and Plan of Merger, dated as of the Acquisition Date,
between CR Energy and the Company, CR Energy was merged into the Company with the Company being the surviving corporation and succeeding by operation of law to the Initial NPA; and 

WHEREAS, subject to and on the terms and conditions set forth herein, the parties hereto wish to amend and restate the Initial NPA in its
entirety as set forth herein, with the Initial NPA as so amended and restated being hereinafter referred to as the “Agreement”; 

NOW, THEREFORE, in consideration of the premises and agreements hereinafter set forth, the parties hereto agree as follows: 

SECTION 1. AUTHORIZATION OF NOTES. 
 The
Company will authorize the issue and sale of $110,000,000 aggregate principal amount of its 6.47% Senior Notes due September 30, 2030 (the “Notes”, such term to include any such notes issued in substitution therefor pursuant to
Section 13). The Notes shall be substantially in the form set out in Exhibit 1. Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or
an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement. 
 SECTION 2. SALE AND PURCHASE OF NOTES.

 Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will
purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount
thereof. The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any
other Purchaser hereunder. 
 SECTION 3. CLOSING. 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Bingham McCutchen, 399 Park Avenue, New
York, NY, at 11:00 a.m., New York time, at a closing (the “Closing”) on July 13, 2010, or on such other Business Day thereafter on or prior to July 16, 2010 as may be agreed upon by the Company and the Purchasers. At the
Closing the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least $1,000,000 as such Purchaser may request) dated the Closing
Date and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of
immediately available funds for the account of the Company to account number 4426868026 at Bank of America, 901 Main Street, Dallas, TX 75202 ABA: 026009593 or to such other account as established in a flow of funds memorandum that is agreed upon
between the Company and the Purchasers. If at the Closing the Company shall fail to tender such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in
Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such
Purchaser may have by reason of such failure or such nonfulfillment. 

  
 ANNEX A-2

 (Amended and Restated Note Purchase Agreement) 

 SECTION 4. CONDITIONS TO CLOSING 

Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to
the satisfaction of each Purchaser, prior to or at the Closing, of the following conditions: 
 Section 4.1
Representations and Warranties. The representations and warranties of the Company in this Agreement shall be correct when made and at the time of the Closing. 

Section 4.2 Performance; No Default. The Company shall have performed and complied with all agreements and
conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by
Section 5.14) no Default or Event of Default shall have occurred and be continuing and no “Default” or “Event of Default” under the 2009 Note Agreement or the RBC Agreement shall have occurred and be
continuing. 
 Section 4.3 Compliance Certificates. 

(a) Company’s Closing Certificates. The Company shall have delivered to each Purchaser an officer’s
certificate, dated the Closing Date, certifying that (i) the conditions specified in Sections 4.1 and 4.2 have been fulfilled, and (ii) that each of the other conditions precedent to the occurrence of the Closing has been
satisfied. 
 (b) Company’s Authority Certificate. The Company shall have delivered to each Purchaser a
certificate of its secretary, dated the Closing Date, certifying as to the resolutions attached thereto and other corporate proceedings by the Company relating to the authorization, execution and delivery of the Notes and this Agreement and the
other Transaction Documents to which it is a party. 
 Section 4.4 Opinions of Counsel. Such Purchaser shall have received
opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a)(i) from Mayer Brown LLP, counsel for the Company, Sharyland, New Owner and New Operator, covering such matters incident to the transactions contemplated
hereby as such Purchaser or its counsel may reasonably request, and (ii) from Sutherland, Asbill & Brennan LLP, special counsel for the Company, Sharyland, New Owner and New Operator, covering Federal and Texas regulatory matters (and
the Company hereby instructs its counsel to deliver such opinion to the Purchasers and the Secured Parties), and (b) from Bingham McCutchen LLP, in connection with such transactions, in form and substance satisfactory to the Purchasers and
covering such other matters incident to such transactions as the Purchasers may reasonably request. 

  
 ANNEX A-3

 (Amended and Restated Note Purchase Agreement) 

 Section 4.5 Purchase Permitted By Applicable Law, Etc. On the date
of the Closing such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York
Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of
the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If
requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.

 Section 4.6 Sale of Other Notes. Contemporaneously with the Closing, (a) the Company shall sell to each Purchaser and
each Purchaser shall purchase the Notes to be purchased by it at the Closing as specified in Schedule A; (b) the transactions contemplated by the RBC Agreement shall be consummated and (c) the transactions contemplated by the TDC Note
Agreement shall be consummated. 
 Section 4.7 Payment of Special Counsel and Other Fees and Expenses. Without
limiting the provisions of Section 15.1, the Company shall have paid on or before the Closing: (a) the fees, charges and disbursements of the Purchasers’ special counsel, Bingham McCutchen LLP and the Purchasers’
Texas counsel to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing and (b) all other fees, including to the extent not paid pursuant to the Initial NPA a structuring fee
in the amount of $550,000 to Prudential (the “Structuring Fee”), and out-of-pocket costs and expenses (including legal fees and expenses and consultant fees
and expenses) and other compensation contemplated hereby or by the other Financing Documents, or pursuant to separate letter agreements, payable to the Purchasers. 

Section 4.8 Private Placement Number. A Private Placement Number issued by Standard & Poor’s CUSIP
Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes. 
 Section 4.9 Changes in
Structure. The Cap Rock Transaction shall be consummated prior to or contemporaneously with the Closing. The Company shall not have changed its jurisdiction of formation or been a party to any merger or consolidation or succeeded to all or any
substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5, except in connection with the Cap Rock Transaction. 

Section 4.10 Funding Instructions. At least one Business Day prior to the date of the Closing, each Purchaser shall
have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the name and address of the transferee bank, (ii) such transferee
bank’s ABA number and (iii) the account name and number into which the purchase price for the Notes is to be deposited. 

Section 4.11 Proceedings and Documents. Each Purchaser shall have received the following, each to be (i) dated
the Closing Date unless otherwise indicated, and (ii) in form and substance satisfactory to the Purchasers: 
 (a) The Notes to be
purchased by the Purchasers; 

  
 ANNEX A-4

 (Amended and Restated Note Purchase Agreement) 

 (b) This Agreement and each other Financing Document, duly executed, authorized and
delivered by each party thereto; 
 (c) The certificates of formation of the Company, each Member, New Owner and New Operator each certified
as of a recent date by the Secretary of State of Texas and by such Person’s secretary or other authorized officer; 
 (d) The
organizational documents of each the Company, each Member, New Owner and New Operator certified by such Person’s secretary or other authorized officer; 

(e) With respect to each of the Company, Sharyland, New Owner and New Operator, an incumbency certificate signed by the secretary and one
other officer of such Person, certifying as to the names, titles and true signatures of the officers of such Person authorized to sign this Agreement, the Notes, the other Financing Documents to which such Person is a party and other documents to be
delivered hereunder or thereunder; 
 (f) A certificate of the secretary of the Company, Sharyland, New Owner and New Operator attaching
resolutions of its management committee or other governing body evidencing approval of the transactions contemplated by this Agreement and the other Financing Documents to which such Person is a party and, with respect to the Company, the issuance
of the Notes, and in each case, the execution, delivery and performance thereof, and authorizing certain officers to execute and deliver the same, and certifying that such resolutions were duly and validly adopted and have not since been amended,
revoked or rescinded; 
 (g) Good standing certificates as to each of the Company, each Member, New Owner and New Operator from all relevant
jurisdictions; 
 (h) Evidence of the filing and acceptance of financing statements which name the Company, as debtor, and the Collateral
Agent, as secured party, in all applicable offices, together with copies of such financing statements; 
 (i) A schedule of all Required
Permits, together with copies thereof certified by officers of the Company as being true, correct and complete, in full force and effect and not subject to any appeal or further proceeding; 

(j) Certified copies of the documents delivered in connection with the consummation of the Cap Rock Transaction, including without limitation
the Public Utility Commission of Texas and FERC approvals issued in connection with the Cap Rock Transaction; 
 (k) Copies of the documents
delivered in connection with the consummation of the transactions contemplated by the RBC Agreement and of the documents delivered in connection with the consummation of the transactions contemplated by the TDC Note Agreement; and 

  
 ANNEX A-5

 (Amended and Restated Note Purchase Agreement) 

 (l) Such additional documents or certificates with respect to such legal matters or limited
liability company, general partnership or other proceedings related to the transactions contemplated hereby as may be reasonably requested by the Purchasers. 

Section 4.12 Joinder Agreement, Etc. The Obligations shall be secured by a perfected first priority security
interest (subject to Permitted Liens) in the Collateral in favor of the Collateral Agent, for the benefit of the Secured Parties, and the Company will deliver or cause to be delivered to the Purchasers and the Collateral Agent on the Closing Date a
joinder agreement, substantially in the form of Exhibit A attached to the Collateral Agency Agreement, duly executed by the Company, the Collateral Agent and each Purchaser as a “Joining Party” (the “2010 NPA Joinder
Agreement”), and the following, each of which shall be in full force and effect: 
 (a) The First Lien Deed of Trust, Security
Agreement, Assignment of Rents and Leases and Fixture Filings (Texas) by and from the Company, as grantor, to Peter M. Oxman, as trustee, for the benefit of the Collateral Agent and the Secured Parties, dated as of July 13, 2010, covering the
real property listed on Schedule 4.12(a) hereto; 
 (b) An Assignment of Membership Interests and Pledge Agreement in the form
attached hereto as Exhibit S-3A, duly executed by the Company, with respect to its membership interests in New Owner, to the Collateral Agent for the benefit of the Secured Parties (the “Pledge
Agreement (Company)”), and an Assignment of Membership Interests and Pledge Agreement in the form attached hereto as Exhibit S-3B, duly executed by TDC, with respect to its membership interests
in the Company, to the Collateral Agent for the benefit of the Secured Parties (the “Pledge Agreement (TDC)”, and together with the Pledge Agreement (Company), the “Pledge Agreements”); 

(c) A Negative Pledge Agreement in the form attached hereto as Exhibit S-4, duly executed by
New Owner to the Collateral Agent for the benefit of the Secured Parties (the “Negative Pledge Agreement”); 

(d) A joinder agreement, substantially in the form of Exhibit A attached to the Collateral Agency Agreement, duly executed by RBC (the
“RBC Joinder Agreement”); and 
 (e) Such other documents, instruments and agreements any Purchaser may reasonably request
to grant to the Collateral Agent first priority (subject only to Permitted Liens) perfected Liens on the Collateral. 

Section 4.13 UCC Searches; and Litigation Searches. The Collateral Agent and the Purchasers shall have received UCC
and litigation searches of the Company, each Member, New Owner and New Operator which searches shall (i) confirm that no Liens other than Permitted Liens exist on the Collateral and that such Persons are not subject to any litigation, and
(ii) be otherwise in substance satisfactory to the Collateral Agent and the Purchasers. 
 Section 4.14
Insurance. The Company shall have delivered to the Purchasers evidence of insurance in effect that meets the requirements of Section 9.2, and the Purchasers shall have received an insurance consultant’s report,
which shall be addressed to the Purchasers and shall be in form and substance satisfactory to the Purchasers. 

  
 ANNEX A-6

 (Amended and Restated Note Purchase Agreement) 

 Section 4.15 Financial Statements. The Purchasers shall have
received unaudited financial statements of the Company and each Member for the calendar quarter ended March 31, 2010. 

Section 4.16 Consents and Approvals. All Required Permits and all governmental and third party permits and
regulatory and other approvals required to be in effect in connection with the issuance of the Notes hereunder have been obtained and are in effect, all applicable waiting periods have expired without any materially adverse action being taken by any
applicable authority, and copies of the documentation thereof shall have been delivered to each Purchaser. 
 SECTION 5. REPRESENTATIONS AND WARRANTIES
OF THE COMPANY. 
 The Company represents and warrants to each Purchaser that: 

Section 5.1 Organization; Power and Authority. Each of the Company, each Member, New Owner and New Operator is a
limited liability company or limited partnership, as applicable, duly organized, validly existing and in good standing under the laws of its jurisdiction of formation, and is duly qualified and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each of the
Company, each Member, New Owner and New Operator has the limited liability company or limited partnership, as applicable, power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business
it transacts and proposes to transact, to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform the provisions hereof and thereof. 

Section 5.2 Authorization, Etc. This Agreement and the other Transaction Documents have been duly authorized by all
necessary limited liability company or limited partnership, as applicable, action on the part of the Company, each Member, New Owner and New Operator, and this Agreement and the other Transaction Documents constitute, and upon execution and delivery
thereof each Note will constitute, a legal, valid and binding obligation of the Company, such Member, New Owner or New Operator, as applicable, enforceable against such Person in accordance with its terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law). 
 Section 5.3 Disclosure. This Agreement, the
other Transaction Documents and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company, a Member, New Owner or New Operator in connection with the transactions contemplated hereby, and the financial
statements listed in Schedule 5.5 (this Agreement, and such documents, certificates or other writings listed on Schedule 5.3 and such financial statements delivered to each Purchaser and listed on Schedule 5.5 being referred to,
collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not 

  
 ANNEX A-7

 (Amended and Restated Note Purchase Agreement) 

 misleading in light of the circumstances under which they were made. The projections and pro forma financial
information contained in the materials referenced above are based upon good faith estimates and assumptions believed by management of the Company and Sharyland to be reasonable at the time made and on the Closing Date, it being recognized by each Purchaser that such financial information as it relates to future events is not to be viewed as fact and that actual results
during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount. Except as disclosed in the Disclosure Documents, since December 31, 2009, there has been no change
in the financial condition, operations, business, properties or prospects of the Company, a Member, New Owner or New Operator except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect.
There is no fact known to the Company that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents. 

Section 5.4 Organization and Ownership of Interests. Schedule 5.4 contains a complete and correct list and
description of (i) each of the Company’s, each Member’s, New Owner’s and New Operator’s jurisdiction of its organization and its ownership structure, (ii) the Company’s and each Member’s Subsidiaries, and
(iii) the Company’s, each Member’s, New Owner’s and New Operator’s senior officers. None of the Company, Sharyland, New Owner or New Operator has any Subsidiaries as of the Closing Date except as shown on Schedule 5.4. 

Section 5.5 Financial Statements; Material Liabilities. The Company and Sharyland havehas delivered to each Purchaser copies of the financial statements listed on Schedule 5.5. 

(a) With respect to the consolidated financial statements of the Company and
Sharyland, all of such financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial positions of the
Company and Sharyland, each as of the respective dates specified in such Schedule and the results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied
throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). Neither theThe Company nor Sharyland has anyno
material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents. 
 (b)
With respect to the consolidated financial statements of Cap Rock Energy Corporation, to the knowledge of the Company and Sharyland, all of such financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial positions of Cap Rock Energy Corporation as of the
date specified in Schedule 5.5 and the results of its operations and cash flows, on a consolidated basis, for the period so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except
as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). To the knowledge of the Company and Sharyland, Cap Rock Energy Corporation does not have any material liabilities that are not disclosed on such financial
statements or otherwise disclosed in the Disclosure Documents. 

  
 ANNEX A-8

 (Amended and Restated Note Purchase Agreement) 

 Section 5.6 Compliance with Laws, Other Instruments, Etc. The
execution, delivery and performance by the Company, the
Membersany Member, New Owner and New Operator of this Agreement
and the Notes and the other Transaction Documents to which such Person is a party, do not and will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of
such Person under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or limited partnership or limited liability company agreement, or any other agreement or instrument to which such Person is bound
or by which such Person or any of its properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to such Person or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to such Person, which in the case of any of the foregoing clauses (i) through (iii),
with respect to Material Project Documents, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

Section 5.7 Governmental Authorizations, Etc. Except as set forth on Schedule 5.7, no consent, approval or
authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company,
eitherany Member, New Owner or New Operator of this Agreement or the Notes or any of the other Transaction Documents to which it is a party. 

Section 5.8 Litigation; Observance of Agreements, Statutes and Orders. (a) There are no actions, suits,
investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company, eitherany Member, New Owner or New Operator or any of their property in any court or before
any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

(b) None of the Company, eitherany Member, New Operator or New Owner is in default under any term of any Material
Project Document or any other agreement or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental
Laws or the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

(c) To the knowledge of the Company, after due inquiry, no breach or default under any of the Material Project Documents has occurred and is
continuing. 
 Section 5.9 Taxes. Each of the Company, each Member, New Owner and New Operator has filed all
material tax returns that are required to have been filed (or timely requests for extensions have been filed, have been granted and are not expired) in any jurisdiction, and has paid all taxes shown to be due and payable on such returns and all
other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments
(i) the amount of which is not individually or in the aggregate material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which such Person has

  
 ANNEX A-9

 (Amended and Restated Note Purchase Agreement) 

 
established adequate reserves in accordance with GAAP. The Company knows of no basis for any other tax or assessment that could reasonably be expected to have a Material Adverse Effect. The
charges, accruals and reserves on the books of the Company in respect of Federal, state or other taxes for all fiscal periods are adequate. 

Section 5.10 Title to Property; Leases. The Company has good and sufficient title to
the System and the Acquired System, New Owner has good and sufficient title to the FERC Assets and the Company, Sharyland,
New Owner and New Operator have good and sufficient title to their properties that individually or in the aggregate are material to them, free and clear of Liens (other than Permitted Liens).
All leases that individually or in the aggregate are material to the Company, Sharyland, New Owner or New Operator are
valid and subsisting and are in full force and effect in all material respects. 

Section 5.11 Insurance.
SharylandThe Company and New Operator have (or have caused to be in effect) all insurance coverage required by Section 
9.2. 
 Section 5.12 Licenses, Permits, Etc.; Material Project Documents.
The Company, Sharyland, New Owner and New Operator own or possess all governmental and third party licenses, permits,
franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that are material to the ownership, leasing, operating and maintenance of the System, including the Acquired System,
and the FERC Assets, including the applicable Certificates of Convenience
and Necessity (#30192, #30026, #30114 and #30191) issued or transferred by the Public Utility Commission of Texas
to Sharyland and the
New Operator (collectively, the “Required Permits”), without known conflict with the rights
of others. All Required Permits are listed in Schedule 5.12(a). The Material Project Documents listed on Schedule 5.12(b) constitute and include all material contracts and agreements to which the Company, Sharyland, New Owner or New Operator is a party. Each Material Project Document is in full force and effect, and constitutes the
legal, valid and binding obligation of each party thereto as of the date hereof. 

Section 5.13 Compliance with ERISA. The Company and each ERISA Affiliate have operated
and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA
Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or
exists that could reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in
either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or 412 of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be individually or in the aggregate
material. 
 (b) The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined
as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report did not exceed the aggregate current value of the

  
 ANNEX A-10

 (Amended and Restated Note Purchase Agreement) 

 
assets of such Plan allocable to such benefit liabilities by an amount that could reasonably be expected to result in a Material Adverse Effect. The term “benefit liabilities” has the
meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meanings specified in section 3 of ERISA. 

(c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities)
under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are material. 
 (d) The
expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities
attributable to continuation coverage mandated by section 4980B of the Code) of the Company is not material to it. 
 (e) The execution and delivery of this
Agreement and the issuance and sale of the Notes hereunder will not involve any non-exempt prohibited transaction under section 406 of ERISA or in connection with which a tax could be imposed pursuant to
section 4975(c)(1)(A)-(D) of the Code. The representation by the Company to each Purchaser in the first sentence of this Section 5.13(e) is made in reliance upon and subject to the accuracy of such Purchaser’s
representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be purchased by such Purchaser. 

Section 5.14 Private Offering by the Company. Neither the Company nor anyone acting on its behalf has offered the
Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than the Purchasers and not more than five other Institutional
Investors, each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration
requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction. 

Section 5.15 Use of Proceeds; Margin Regulations. The Company has applied the proceeds of the sale of the Notes to
(i) pay the purchase price for the Cap Rock Transaction and (ii) pay all fees, expenses and costs related to Closing, including legal fees and the Structuring Fee. No part of the proceeds from the sale of the Notes hereunder will be used,
directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any
securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). As used in this Section, the terms
“margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in Regulation U. 

Section 5.16 Existing Indebtedness; Future Liens. (a) Schedule 5.16 sets forth a complete and correct
list of all outstanding Indebtedness of the Company, each Member, New Owner and New Operator as of March 31, 2010 (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and Guaranty
thereof, if 

  
 ANNEX A-11

 (Amended and Restated Note Purchase Agreement) 

 
any). Since March 31, 2010, there has been no material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company, a Member,
New Owner or New Operator. None of the Company,
aany Member, New Owner or New Operator is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any of its Indebtedness and no event or condition exists with
respect to any of its Indebtedness that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly
scheduled dates of payment. 
 (b) The Company has not agreed or consented to cause or permit in the future (upon the happening of a
contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not otherwise permitted by Section 10.5. 

(c) The Company is not a party to, nor otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company,
any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, other
than the 2009 Note Agreement and the RBC Agreement. 
 Section 5.17 Foreign Assets Control Regulations, Etc.
(a) Neither the sale of the Notes by the Company hereunder nor the use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department
(31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. 
 (b) None of the Company, the Membersany Member, New Owner or New Operator: (i) is a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the
Anti-Terrorism Order or (ii) engages in any dealings or transactions with any such Person. The Company, each Member, New Owner and New Operator is in compliance, in all material respects, with the USA Patriot Act. 

(c) No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to the Company and the Members. 

Section 5.18 Status under Certain Statutes. Prior to, and after consummation of, the Cap Rock Transaction:

 (a) Neither
any Member nor the Company is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or an “investment adviser” within the meaning of the Investment Advisers Act of 1940, as amended. 

  
 ANNEX A-12

 (Amended and Restated Note Purchase Agreement) 

 (b) Neither the Company nor
eitherany Member is a “public utility” under the FPA and the regulations of FERC thereunder. The execution, delivery and performance of the Company’s and Sharyland’s
obligations under the Transaction Documents requires no authorization of approval by, or notice to, and is not subject to the jurisdiction of, FERC under the FPA. 

(c) Sharyland and the holding company system of which it is a part have
obtained a waiver of the requirements of 18 C.F.R. 366.21, 366.22 and 366.23 (FERC Docket No. PH06-59-000), but are subject to the FERC regulations relating to
regulatory access to books and records. Sharyland and the holding company system of which it is a part have filed a notice of holding company status under FERC Docket No.
HC06-1-000 and may be required to submit a revised notice of holding company status and/or a revised request for the waiver described in the preceding sentence as a
result of the transactions contemplated in the Transaction Documents or in Schedule 10.1. Under FERC’s currently effective regulations, the Company will be deemed not to be a “public-utility company” and
as a result TDC is not a “holding company” under PUHCA; as a result of
the Cap Rock Transactions, Sharyland will become a “holding company”
under PUHCA. 

(d) The Company is subject to regulation as an “electric utility” by the Public Utility Commission of Texas. The execution, delivery
and performance of the Company’s and Sharyland’s obligations under the Transaction Documents requires no authorization or approval by, or notice to, the Public Utility Commission
of Texas or under the Public Utility Regulatory Act of Texas other than those that have been obtained. 
 (e) Solely by virtue of the
execution, delivery and performance of the Transaction Documents, no Purchaser will become subject to any of the provisions of the FPA, PUHCA (based on FERC’s currently effective definitions under PUHCA) or the Public Utility Regulatory Act of
Texas, or to regulation under any such statute. 
 Section 5.19 Environmental Matters. (a) The Company has no
knowledge of any claims nor has it received any notice of any claim, and no proceeding has been instituted raising any claim against the Company, a Member, New Owner or New Operator or any of their real properties now or formerly owned, leased or
operated by any of them or other assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect. 

(b) The Company has no knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or
damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by the Company, eitherany Member, New Owner or New Operator or to other assets or its use, except, in each
case, such as could not reasonably be expected to result in a Material Adverse Effect. 
 (c) None of the Company, aany Member, New Owner or New Operator has stored any Hazardous Materials on real
properties now or formerly owned, leased or operated by any of them and has not disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that could reasonably be expected to result in a Material
Adverse Effect; and. 

  
 ANNEX A-13

 (Amended and Restated Note Purchase Agreement) 

 (d) All buildings on all real properties now owned, leased or operated by the Company, a
Member, New Owner or New Operator are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect. 

Section 5.20 Force Majeure Events; Employees. None of the System, the Acquired System, the FERC Assets nor any of
the other assets of the Company, a Member, New Owner and New Operator has suffered any Force Majeure Event that is continuing. Neither the Company nor New Owner has any employees. 

Section 5.21 Collateral. The Collateral, as described in the Security Documents, constitutes all of the
Company’s rights in the System Lease and the System and all of its membership interests in New Owner and all of
TDC’s membership interests in the Company. The security interests in the Collateral granted to the Collateral Agent (for the benefit of the Secured Parties) pursuant to the Financing Documents: (a) constitute as to personal property
included in the Collateral and, with respect to subsequently acquired personal property included in the Collateral, will constitute, a perfected security interest and Lien under each applicable Uniform Commercial Code, and (b) are, and, with
respect to such subsequently acquired property, will be, as to Collateral perfected under each applicable Uniform Commercial Code, superior and prior to the rights of all third Persons now existing or hereafter arising whether by way of mortgage,
lien, security interests, encumbrance, assignment or otherwise, except for Permitted Liens. All action as is necessary has been taken to establish and perfect the Collateral Agent’s rights in and to, and the first lien priority of its Lien on,
the Collateral, including any recording, filing, registration, delivery to the Collateral Agent, giving of notice or other similar action. The Security Documents and financing statements relating thereto have been duly filed or recorded in each
office and in each jurisdiction where required in order to create and perfect the Lien and security interest described above and the priority thereof. 

SECTION 6. REPRESENTATIONS OF THE PURCHASERS. 

Section 6.1 Purchase for Investment. Each Purchaser severally represents that it is an “Accredited
Investor” as defined in Rule 501 of Regulation D under the Securities Act. Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the
account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s property shall at all times be within such Purchaser’s control. Each Purchaser understands
that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such
registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 

  
 ANNEX A-14

 (Amended and Restated Note Purchase Agreement) 

 Section 6.2 Source of Funds. Each Purchaser severally represents
that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser
hereunder: 
 (a) the Source is an “insurance company general account” (as the term is defined in the United States
Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies
approved by the National Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and
liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee
organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s
state of domicile; or 
 (b) the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed
contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant))
are not affected in any manner by the investment performance of the separate account; or 
 (c) the Source is either (i) an insurance
company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as
disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such
pooled separate account or collective investment fund; or 
 (d) the Source constitutes assets of an “investment fund” (within the
meaning of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption),
no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section
V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied
as of the last day of the most recent calendar quarter, the QPAM does not own a 10% or more interest in the Company and no Person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM
Exemption) owns a 20% or more interest in the Company (or less than 20% but greater than 10% if such Person exercises control over the management or policies of the Company by reason of its ownership interest) and (i) the identity of such QPAM
and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or 

  
 ANNEX A-15

 (Amended and Restated Note Purchase Agreement) 

 (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV
of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV
of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(d) of
the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing
pursuant to this clause (e); or 
 (f) the Source is a governmental plan; or 

(g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans,
each of which has been identified to the Company in writing pursuant to this clause (g); or 
 (h) the Source does not include assets of any
employee benefit plan, other than a plan exempt from the coverage of ERISA. 
 As used in this Section 6.2, the terms
“employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA. 

SECTION 7. INFORMATION. 

Section 7.1 Financial and Business Information. The Company shall deliver, and shall cause Sharyland to deliver, and shall use commercially reasonable efforts to cause each other Qualified Lessee (other than any Consolidated Qualified Lessee) to deliver, to each Holder of Notes (provided, that no default shall arise under this
Section 7.1
as a result of the failure by a Qualified Lessee other than Sharyland to deliver financial statements and other documents in
accordance with the requirements of an applicable Lease and such Lease is terminated
in accordance with
Section 9.14
hereunder):: 
 (a) Quarterly Statements — within 45 days after the end of each quarterly
fiscal period in each calendar year of such Personthe
Company and its Subsidiaries (excluding the last quarterly fiscal period of each such calendar year), duplicate copies of 

(i) balance sheets of such Personthe Company and its Subsidiaries on a consolidated basis as at the end of such quarter,
and 
 (ii) profit and loss statements and cash flows statements for such Personthe Company and its Subsidiaries on a consolidated basis for such quarter and (in the case of the second and third quarters) for the portion of the calendar year ending with such quarter, 

(iii) setting forth in each case in comparative form the figures for the corresponding periods in the previous calendar year,
all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer of such
Personthe Company as fairly presenting, in all material respects,
the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments; 

  
 ANNEX A-16

 (Amended and Restated Note Purchase Agreement) 

 (b) Annual Statements — within 90 days after the end of each calendar year of
the Company and each Qualified Lessee (other than a Consolidated Qualified Lessee), as applicable, duplicate copies of

 (i) balance sheets of such Personthe Company and its Subsidiaries on a consolidated basis as at the end of such year; and

 (ii) statements of income, profit and loss statements and cash flow statements for such Personthe Company and its Subsidiaries on a consolidated basis for such year, 
 setting forth in each case in
comparative form the figures for the previous calendar year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by 

(A) an opinion thereon of Ernst & Young LLP or another independent public accounting firm of nationally recognized
standing selected by the Company or such Qualified Lessee (herein, the “Approved Accountant”), which opinion
shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that
the examination of the Approved Accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances,
and 
 (B) a certificate of the Approved Accountants stating that they have reviewed this Agreement and stating
further whether, in making their audit, they have become aware of any condition or event that then constitutes a Default or an Event of Default (or, in the case of a Qualified Lessee,
any default or event of default under the Lease under which such Qualified Lessee is a lessee), and, if they are aware that any such condition or event then exists, specifying the nature and
period of the existence thereof (it being understood that the Approved Accountants shall not be liable, directly or indirectly, for any failure to obtain knowledge of any Default or Event of Default (or, in the case of a Qualified Lessee, any default or event of default under the Lease under which such Qualified Lessee is a lessee) unless the Approved Accountants should have obtained knowledge thereof in making an audit in accordance with generally accepted auditing standards or did not make such an audit); 

  
 ANNEX A-17

 (Amended and Restated Note Purchase Agreement) 

 (c) Other Reports — promptly upon their becoming available, and to the extent
not otherwise required to be delivered pursuant to another provision of this Agreement, one copy of (i) each financial statement and budget and such other reports and notices as a Holder may reasonably request sent by the Company or any Qualified Lessee to its Subsidiaries, (ii)
each report or filing (without exhibits except as expressly requested by such Holder) other than regular and periodic reports and filings made by the Company, or any Subsidiary, or any Qualified Lessee to any state or Federal regulatory body and (iii) each report and filing made by the Company to its
lenders; 
 (d) Notice of Default or Event of Default — promptly, and in any event within 5 Business Days after (i) a Responsible Officer of the Company becoming aware of the existence of any Default or Event of Default or that any Person
has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(i), a
written notice specifying the nature and period of existence thereof and what action the Company or any Subsidiary is taking or proposes to take with respect thereto and
(ii) the Company receives a written notice of default under a System Lease from the applicable Qualified Lessee, a copy of such notice of default or a written
notice specifying the nature and period of existence of such default and what action the Company is taking or proposes to take with respect thereto;;

 (e) [Intentionally Omitted]; 

(f) [Intentionally Omitted]; 

(g) Notices from Governmental Authority — promptly, and in any event within 5 Business Days of receipt (or knowledge thereof by a
Responsible Officer of the Company) of copies of any notice to the Company, or any
Subsidiary, or any Qualified Lessee from any Federal or state Governmental Authority relating to any order, ruling,
statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect; 
 (h) Other Notices
— promptly, and in any event within 5 Business Days of receipt (or knowledge by a Responsible Officer of the Company) thereof: 

(i) any pending or threatened adversarial or contested proceeding of or before a Governmental Authority relating to the System or the System
Leases that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; 

(ii) any litigation or proceeding taken or threatened in writing against the Company,
or any Subsidiary, or any Qualified Lessee, that, if successful, could reasonably be expected to result in a Material Adverse Effect; 

(i) Annual
Operating Budgets — As soon as available and in any event within 30 days after the close of each calendar year of the Company and each Qualified
Lessee (other than a Consolidated Qualified Lessee), as the case may
be,, the annual budget of the Company and its Subsidiaries and each Qualified Lessee, as applicable. 

  
 ANNEX A-18

 (Amended and Restated Note Purchase Agreement) 

(i)
(j) Information Required by Rule 144A — upon the request of such Holder (and shall deliver to any qualified institutional buyer designated by such Holder), such financial and other information as such
Holder may reasonably determine to be necessary in order to permit compliance with the information requirements of Rule 144A under the Securities Act in connection with the resale of Notes, except at such times as the Company is subject to the
reporting requirements of section 13 or 15(d) of the Exchange Act (for the purpose of this Section 7.1(j), the term “qualified institutional buyer” shall have the meaning specified in Rule 144A under the
Securities Act); and 

(j)
(k) Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or relating
to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such Holder of Notes. 

Section 7.2 Officer’s Certificate. Each set of financial statements delivered
pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer of each Qualified
Lessee (other than a Consolidated Qualified Lessee) or the Company, as applicable, setting forth: 

(a) Covenant Compliance — the information (including detailed calculations) required in order to establish whether the Company was
in compliance with the requirements of Sections 9.9, 10.6 and 10.9 of this Agreement, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where
applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and 

(b) Event of Default — a statement that such Senior Financial Officer has reviewed the relevant terms hereof and has made, or
caused to be made, under his or her supervision, a review of the transactions and conditions of the Company from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that
no Default or an Event of Default has occurred and is continuing (or in the case of any
Qualified Lessee, any default or event of default has occurred and is continuing
under any Leases to which it is a party, which default or event of default
constitutes an Event of Default pursuant to Section 11(f)) or, if any such condition or event
has occurred and is continuing (including, without limitation, any such event or condition resulting from the failure of the Company to comply with any Environmental Law), (or
in the case of any Qualified Lessee, any default or event of default has occurred and is continuing under any Leases to which it is a party, which default or event of default constitutes an Event of Default pursuant to Section 11(f)), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to
take with respect thereto. 

  
 ANNEX A-19

 (Amended and Restated Note Purchase Agreement) 

 Section 7.3 [Intentionally Omitted] 

SECTION 8.
PAYMENT AND PREPAYMENT OF THE NOTES. 
 Section 8.1 Amortization; Maturity. On each Payment Date, the Company
will prepay the principal amounts set forth in the amortization schedule attached hereto as Schedule 8.1 (the “Amortization Schedule”) (or such lesser principal amount as shall then be outstanding) of the Notes at par and without payment
of the Yield-Maintenance Amount or any premium, provided that upon any partial prepayment of the Notes pursuant to Section 8.2, the principal amount of each required prepayment of the Notes becoming due under this
Section 8.1 on and after the date of such prepayment shall be reduced in the same proportion as the aggregate unpaid principal amount of the Notes is reduced as a result of the prepayment. The entire unpaid principal
balance of the Notes shall be due and payable on the Maturity Date. 
 Section 8.2 Optional Prepayments with
Yield-Maintenance Amount. The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than $1,000,000 in the case of a partial prepayment, at 100% of
the principal amount so prepaid, and the Yield-Maintenance Amount determined for the prepayment date with respect to such principal amount. The Company will give each Holder of Notes written notice of each optional prepayment under this
Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes
to be prepaid on such date, the principal amount of each Note held by such Holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal
amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Yield-Maintenance Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the
prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each Holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such
Yield-Maintenance Amount as of the specified prepayment date. 
 Section 8.3 Allocation of Partial Prepayments. In
the case of each partial prepayment of the Notes, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts
thereof not theretofore called for prepayment. 
 Section 8.4 Maturity; Surrender, Etc. In the case of each
prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such
principal amount accrued to such date and the applicable Yield- Maintenance Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Yield-
Maintenance Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of
any prepaid principal amount of any Note. 

  
 ANNEX A-20

 (Amended and Restated Note Purchase Agreement) 

 Section 8.5 Purchase of Notes. The Company will not and will not
permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes or
(b) pursuant to Section 13.2(b); provided that if an Affiliate which does not Control and is not Controlled by the Company has so acquired any of the outstanding Notes, such acquisition shall not constitute an Event of
Default. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

 Section 8.6 Yield-Maintenance Amount. 

“Yield-Maintenance Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of
the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Yield-Maintenance Amount may in no event be less than zero. For the purposes of determining the
Yield-Maintenance Amount, the following terms have the following meanings: 
 “Called Principal” means, with respect to any
Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining
Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the
same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 

“Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by
(i) the yields reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may
replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or
(ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such
yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for U.S. Treasury securities having
a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. 
 In the case of each
determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance
with accepted financial practice and (b) interpolating linearly between (1) the applicable U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable U.S. Treasury security
with the maturity closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note. 

  
 ANNEX A-21

 (Amended and Restated Note Purchase Agreement) 

 “Remaining Average Life” means, with respect to any Called Principal, the
number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component
of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect
to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 
 “Remaining Scheduled Payments”
means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made
prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the
amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or 12.1. 

“Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be
prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

Section 8.7 Prepayment in Connection with Asset Sales 

If the Company wants to offer to prepay any Notes in connection with an Asset Sale pursuant to Section 10.10, the
Company will give written notice thereof to each Holder of Notes, which notice shall (i) refer specifically to this Section 8.7 and describe in reasonable detail the Asset Sales giving rise to such offer to prepay the
Notes, (ii) specify the principal amount of each Note being offered to be prepaid, (iii) specify a date upon which the Notes will be prepaid, which shall be not less than 30 days and not more than 60 days after the date of such notice (the
“Disposition Prepayment Date”) and specify the Disposition Response Date (as defined below), and (iv) offer to prepay on the Disposition Prepayment Date the amount specified in (ii) above with respect to each Note together
with interest accrued thereon to the Disposition Prepayment Date. Each Holder of Notes shall notify the Company of such Holder’s acceptance or rejection of such offer by giving written notice of such acceptance or rejection to the Company
(provided, however, that any Holder who fails to so notify the Company shall be deemed to have rejected such offer) on a date at least 5 days prior to the Disposition Prepayment Date (such date 5 days prior to the Disposition Prepayment Date being
the “Disposition Response Date”), and the Company shall prepay on the Disposition Prepayment Date the amount specified in (ii) above plus interest accrued thereon to the Disposition Prepayment Date, but without any
Yield-Maintenance Amount or other premium, with respect to each Note held by the Holders who have accepted such offer in accordance with this Section 8.7. 

  
 ANNEX A-22

 (Amended and Restated Note Purchase Agreement) 

 SECTION 9. AFFIRMATIVE COVENANTS. 

The Company covenants that so long as any of the Notes are outstanding: 

Section 9.1 Compliance with Law. Without limiting Section 10.4, the Company will, and will
cause its Subsidiaries to comply with all laws, ordinances or governmental rules or regulations to which it is subject, including, without limitation, ERISA, the USA Patriot Act and Environmental Laws, and will obtain and maintain in effect all
licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of its properties or to the conduct of its businesses to the extent necessary to ensure that
non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 Section 9.2
Insurance.(a) Maintenance of Insurance. The Company will maintain or cause to be maintained and will cause its Subsidiaries to maintain, with financially sound and reputable insurers, insurance with respect to their respective properties
and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with
respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated. 

  
 ANNEX A-23

 (Amended and Restated Note Purchase Agreement) 

 (b) Evidence of Insurance: Promptly upon request by a Holder or the Collateral Agent,
the Company shall furnish the Holders and the Collateral Agent with approved certification of all required insurance. Such certification shall be executed by each insurer or by an authorized representative of each insurer where it is not practical
for such insurer to execute the certificate itself. Such certification shall identify underwriters, the type of insurance, the insurance limits, and the policy term, and shall specifically list the special provisions enumerated for such insurance
required by this Section 9.2. Upon request, the Company will promptly furnish the Holders and the Collateral Agent with copies of all insurance certificates, binders, and cover notes or other evidence of such insurance
relating to the Collateral. 
 (c) No Duty of Purchaser to Verify: No provision of this Section 9.2 or any
other provision of this Agreement, any other Financing Document or any Lease shall impose on the Holders or the Collateral Agent any duty or obligation to verify the existence or adequacy of the insurance coverage maintained by the Company, nor
shall the Holders or the Collateral Agent be responsible for any representations or warranties made by or on behalf of the Company to any insurance company or underwriter. 

Section 9.3 Maintenance of Properties. The Company will, and will cause its Subsidiaries, Sharyland and Qualified Lessees that are
Affiliates of the Company to, and will use commercially reasonable efforts to cause the other Qualified Lessees to, (a) maintain, preserve and protect
in all material respects all of its respective material properties (including any such properties comprising any material portion of the System) and equipment necessary in the operation of its respective business (taken as a whole) in good, working
order and condition, ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals and replacements thereof. 

Section 9.4 Payment of Taxes and Claims. The Company will, and will cause each of its Subsidiaries to,
file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their
properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of
the Company or any Subsidiary, provided that none of the Company or any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by such Person on a timely basis in
good faith and in appropriate proceedings, and such Person has established adequate reserves therefor in accordance with GAAP on its books or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims in the aggregate could
not reasonably be expected to have a Material Adverse Effect. 
 Section 9.5 Existence, Etc. Except as permitted
under Section 10.2, the Company will, and will cause each of its Subsidiaries, at all times preserve and keep in full force and effect its respective limited liability company, corporate or limited partnership existence and
all rights and franchises of the Company unless (other than with respect to the Company’s existence), in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such limited liability
company, corporate or limited partnership existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect. 

  
 ANNEX A-24 

(Amended and Restated Note Purchase Agreement) 

 Section 9.6 Books and Records; Inspection Rights 

. The Company will, and will cause
each of its Subsidiaries and Sharyland to, and will use commercially reasonable efforts to cause other Qualified Lessees
to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over such Person.
The Company will permit representatives and independent contractors of the Holders of the Notes to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom,
and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Company and at such reasonable times during normal business hours no more than once per calendar year, upon
reasonable advance notice to the Company; provided, however, that when an Event of Default has occurred and is continuing, any Holder of the Notes (or any of its respective representatives or independent contractors) may do any of the
foregoing at the expense of the Company at any time during normal business hours and as often as reasonably desired. 

Section 9.7 Collateral; Further Assurances(a) The Company shall take all actions necessary to insure that the
Collateral Agent, on behalf of the Secured Parties (or in the case of Real Property Collateral, the Trustee named in the Deeds of Trust, for the benefit of the Collateral Agent and the other Secured Parties), has and continues to have in all
relevant jurisdictions duly and validly created, attached and enforceable Liens on the Collateral, including perfected first-priority Liens on Collateral constituting UCC Collateral or Real Property Collateral, in each case, to the extent required
under the Security Documents (including, in accordance with clauses (c) and (d) of this Section 9.7, after-acquired Collateral), subject to no Liens other than Permitted Liens. The Company shall cause the Obligations
to constitute direct senior secured obligations of the Company and to be senior in right of payment and to rank senior in right of security (other than Permitted Liens) with respect to Collateral granted in the Security Documents to all other
Indebtedness of the Company (other than Permitted Secured Indebtedness, with which it shall be pari passu in accordance with the terms of the Collateral Agency Agreement). 

(b) Upon completion of each New Project of a Project Finance Subsidiary, the Company may acquire the equity interests of such Project Finance Subsidiary or cause any such
Project Finance Subsidiary to Transfer the New Project to the Company and upon such acquisition or Transfer, the Company or the Project Finance
Subsidiary, as applicable, shall take all actions necessary to insure
that 
 (w) (w) the New Project becomes a part of the Collateral to the extent required under the
Security Documents and Section 9.7(c), subject to the first priority Lien of the Security Documents (subject to no Liens other than Permitted Liens and rights of holders of Permitted Secured Indebtedness in accordance with the Collateral Agency
Agreement), (x) no Default or Event of Default occurs as a result of such Transfer, (y) the Indebtedness of the Project Finance Subsidiary is either repaid in full at the time of the Transfer or becomes Permitted Secured Indebtedness in
accordance with the Collateral Agency Agreement, and (z) the Project Finance Subsidiary is promptly liquidated or merged with and into the Company or has provided a Guaranty of the Obligations in a manner consistent with Section 9.7(d).

 (c)
If, after the Third Amendment Date, the Company acquires any Real Property Collateral, the Company shall forthwith (and in any event, within
five Business Days of 45 days after the
last day of the fiscal quarter in which such acquisition is consummated or such longer period of time as reasonably agreed by the Required
Holders) deliver to the Collateral Agent a fully executed mortgage or deed of trust over the Company’s 

  
 ANNEX A-25 

(Amended and Restated Note Purchase Agreement) 

 interests in such Real Property Collateral, in form and substance satisfactory to the
Required Holders and the Collateral Agent, together with such surveys, environmental reports and other documents and certificates with respect to such real estate as may be reasonably required by the Required Holders. The Company further agrees to
take all other actions necessary to create in favor of the Trustee named therein for the benefit of the Collateral Agent and the other Secured Parties a valid and enforceable first priority Lien on the Company’s interests in such Real Property
Collateral, free and clear of all Liens except for Permitted Liens and rights of holders of Permitted Secured Indebtedness in compliance with the Collateral Agency Agreement. 

(d) If, after the Third Amendment Date, the Company acquires or creates any new Subsidiary (other than any Subsidiary of the Company that is not organized under the laws of the United States, any state thereof or the District of Columbia, any Project
Finance Subsidiary (except pursuant to Section 9.7(b)) and any other
Subsidiary that is prohibited from providing a Guaranty of the Obligations by any Requirement of Law), the Company shall or cause such Subsidiary forthwith (and in any event, within 30 days of such creation or acquisition (or such longer time as the
Required Holders may agree)): 

(i) execute and deliver to the Collateral Agent a Subsidiary Guaranty; 

(ii) to deliver to the Collateral Agent a certificate of such Subsidiary, substantially consistent with those delivered on the
Closing Date pursuant to Section 4.03(b), with appropriate insertions and attachments; 
 (iii) to
take such actions reasonably necessary or advisable to grant to the Collateral Agent for the benefit of the Secured Parties (or, in the case of Real Property Collateral, the Trustee named in the Deeds of Trust, for the benefit of the Collateral
Agent and the other Secured Parties) a perfected and enforceable first- priority Lien in the Collateral described in the Security Documents with respect to such new Subsidiary, subject to no Liens other than Permitted Liens and rights of holders of
Permitted Secured Indebtedness in compliance with the Collateral Agency Agreement; and 
 (iv) if reasonably requested by the
Collateral Agent, to deliver to the Collateral Agent legal opinions relating to the matters described above, which opinions shall be in form and substance reasonably satisfactory to the Collateral Agent. 

Notwithstanding anything to the contrary herein or in any other Note Document, it is understood and agreed that the Subsidiary Guaranty of any Subsidiary that
is subject to an Asset Sale permitted under Section 10.10 shall be automatically released simultaneously with the release of liens and security interests in connection with such Asset Sale in accordance with the Collateral Agency Agreement
without the need for any further consent from, or action by, any Holder. In addition, in connection with any Asset Sale permitted under Section 10.10, the Holders hereby agree to execute and/or deliver any documents and/or take any other action
reasonably requested by the Company to further evidence or give effect to the release of any Subsidiary Guaranty by any Subsidiary that is the subject of such Asset Sale. 

  
 ANNEX A-26 

(Amended and Restated Note Purchase Agreement) 

 Section 9.8 Material Project Documents.(a) The Company shall at
all times (i) perform and observe all of the covenants under the Material Project Documents to which it is a party and
take reasonable actions to enforce all of its rights thereunder, other than to the extent the same could not reasonably be expected to have a Material Adverse Effect,
(ii) subject to the provisions of clause (b) of this
Section 9.8, maintain the System Leases (other than Leases constituting System Leases only pursuant to clause (5) of the definition thereof) in full force and effect, and (iii) maintain the Leases (other than
the System Leases referred to in the foregoing clause (ii) of this
Section 9.8(a)) to which it or any of its Subsidiaries is a party in full force and effect, except to the extent the same could not reasonably be expected to have
a Material Adverse Effect.. 

  
 ANNEX A-27 

(Amended and Restated Note Purchase Agreement) 

 (b) If the term of a Lease
with the Company or one of its Subsidiaries expires and the Qualified Lessee under
such Lease has either ceased operating the related assets or has ceased paying rent
as required under the applicable Lease, the Company shall, or shall cause a Subsidiary, as applicable, to enter into a supplement or a new Lease
with respect to the related leasehold assets with a Qualified Lessee that provides for rent that, when combined with all other expected revenue, will, in the reasonable judgment of the Company, as of the commencement date of such supplement or new
Lease, generate sufficient revenue to satisfy the requirements of Section 9.9 and will not otherwise result in a materially worse position for the Company as
compared to the terms of the applicable expired Lease. Each such new Lease shall have
a term of at least five years. Notwithstanding the foregoing, if (i) such expired Lease relates to transmission and/or distribution assets that are not generating
significant revenue, (ii) the failure to renew such Lease would not constitute a Material Adverse Effect and (iii) the Company reasonably believes it will generate sufficient revenue and hold sufficient assets (without giving effect to the leasehold assets with respect to such Lease) to satisfy
the requirements of
Section 
9.9, then this
Section 9.8(b)
will not require a supplement or new lease with respect to such leasehold
assets. 

Section 9.9 Financial Ratios(a) The Company shall at all times maintain, on a consolidated basis, a Total Debt to
Capitalization Ratio of not more than 0.65 to 1.00. 
 (b) The Company shall maintain, for each period of four consecutive fiscal quarters,
a Debt Service Coverage Ratio of at least 1.40 to 1.00; provided that for purposes of this Section 9.9(b), the Debt Service Coverage Ratio shall be deemed to be 1.40 to 1.00 for the three calendar quarters ending
December 31, 2009, March 31, 2010 and June 30, 2010. 
 SECTION 10. NEGATIVE COVENANTS. 

The Company covenants that so long as any of the Notes are outstanding: 

Section 10.1 Transactions with Affiliates. The Company will not and will not permit any Subsidiary to enter into
directly or indirectly any transaction or group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate other than
(i) transactions with Project Finance Subsidiaries, as permitted by Section 9.7(b)(ii) and other transactions between or
among the Company and one or more Subsidiaries, or any subset thereof, to the extent permitted under Sections 10.2, 10.6, 10.7, 10.10 and 10.14, (ii)
Leases with Qualified Lessees and transactions relating thereto, (iii) any Qualified Lessee
Affiliate Loan and any Indebtedness permitted under Section 10.6(d)(ii)[reserved] (iii)
[reserved], (iv) payment of customary fees and reasonable out of pocket costs to, and indemnities for the benefit of, directors, officers and employees of the Company and its Subsidiaries in the
ordinary course of business, (v) Investments permitted pursuant to Section 10.7, (vi) transactions entered into in connection with the Cross Valley Project on or prior to the Cross Valley Project Transfer and the Golden Spread Project on or prior to the Golden Spread Project Transfer, (vii) ROFO Transfers[reserved] (vii) Permitted
Affiliate Loans, and (viii) upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtained in a comparable arms- length transaction with a Person
not an Affiliate; provided that any transaction will be deemed to meet the requirements of
this clause (viii) if, (x) prior to a Qualifying IPO, such transaction is on
terms
approved
by
the
holders
of
a
majority
of
the
Capital
Stock
of
InfraREIT
held
by
Persons. 

  
 ANNEX A-28 

(Amended and Restated Note Purchase Agreement) 

 
who do not have a separate material interest in such transaction other than by virtue of their ownership of such Capital Stock,
or by a majority of the directors
nominated by such Persons, and (y) upon the completion of a Qualifying IPO and thereafter, such transaction is on terms approved by a majority of the board of directors (or comparable
governing body) of InfraREIT or an Affiliate thereof who are
“independent”(as such term is defined pursuant to the rules of the primary exchange on which the Capital Stock is
listed for trading), or a majority of the “independent” members of a committee of any such board of directors (or comparable governing
body). 
 Section 10.2 Merger, Consolidation,
Etc. The Company will not nor will it cause or permit any of its Subsidiaries to consolidate with or merge with any other Person or Transfer all or substantially all of its assets in a single transaction or series of transactions to any Person,
except (i) pursuant to the System Leases or any other Lease[reserved], (ii)
subsidiary mergers as permitted pursuant to
Section 9.7(b), (iii) that so long as both before and after giving effect to such merger or consolidation or Transfer of all or substantially all of its assets to another Person no Default or Event of Default exists, the
Company or any Subsidiary may merge or consolidate with another Person, and the Company or any Subsidiary may Transfer all or substantially all of its assets to another Person, so long as, after giving effect to such merger or consolidation, or such
Transfer of all or substantially all of its assets, (A) with respect to any merger or consolidation to which the Company is a party, the Company shall be the surviving entity, (B) with respect to any merger or consolidation to which a
Subsidiary is a party but the Company is not, a Subsidiary (other than a Project Finance Subsidiary) shall be the surviving entity and (C) with respect to any Transfer of all or substantially all of its assets by the Company or a Subsidiary,
the Company or another Subsidiary (other than a Project Finance Subsidiary) shall be the transferee or lessee of such assets (except to the extent permitted by clauses
(i) andclause (ii) of this Section 10.2, (iv) the
FERC
Merger[reserved] or (v) the Company or any Subsidiary may merge or consolidate with another Person or otherwise Transfer assets to another Person in connection with any transaction permitted by Section 10.10 so long as
(A) such transaction does not constitute the Transfer of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole and (B) in the case of a merger or a consolidation to which the Company is a party, the
Company shall survive such merger or consolidation. 
 Section 10.3 Line of Business. The Company will not
and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries taken as a whole, would then be engaged would be substantially changed from the transmission
and distribution of electric power and the provision of ancillary services. 
 Section 10.4 Terrorism Sanctions
Regulations. The Company will not and will not permit any Controlled Entity (a) to become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or any Person that is the target of sanctions
imposed by the United Nations or by the European Union, or (b) directly or indirectly to have any investment in or engage in any dealing or transaction (including, without limitation, any investment, dealing or transaction involving the
proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder to be in violation of any applicable United States (federal or state) anti-terrorism law or regulation applicable to such holder, or
(ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions, or (c) to engage, nor shall any Affiliate of either engage, in any activity that could subject such Person or any holder to sanctions under CISADA or any
similar law or regulation with respect to Iran or any other country that is subject to U.S. Economic Sanctions. 

  
 ANNEX A-29

 (Amended and Restated Note Purchase Agreement) 

 Section 10.5 Liens. The Company will not, nor will it cause or
permit any Subsidiary to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to the Collateral or any other property of the Company or such Subsidiary,
whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, or on any other asset now owned or hereafter acquired by the Company or such Subsidiary,
except (each, a “Permitted Lien”): 
 (a) solely in the case of the Note Parties, Liens created or permitted by the
Financing Documents on the assets of the Note Parties; and 
 (b) (i) solely in the case of a Project Finance Subsidiary, Liens on assets
owned by that Project Finance Subsidiary, (ii) Liens on the Capital Stock in that Project Finance Subsidiary, in each case to secure its Non-Recourse Debt and (iii) Liens in respect of Guaranties
permitted under Section 10.6(c)(iii); 
 (c) Liens created or permitted pursuant to the terms of the Security Documents, including Cash
Collateral (as defined in the Collateral Agency Agreement); 
 (d) Liens for Taxes which are not yet due and payable or the payment of which
is not at the time required by Section 9.4; 
 (e) any attachment or judgment Lien, unless such attachment or
judgment Lien constitutes an Event of Default under Section 11(l) hereof; 
 (f) Liens of a lessor of equipment to
the Company or any Subsidiary on such lessor’s leased equipment (but excluding equipment leased pursuant to a Capital Lease), including any of the foregoing which is evidenced by a protective UCC filing; 

(g) Mechanics’, warehousemen’s, carriers’, workers’, repairers’, landlords’, and other similar liens arising or
incurred in the ordinary course of business and (i) which do not in the aggregate materially detract from the value of property or assets subject to such Liens or materially impair the continued use thereof in the operation of the business or
(ii) which are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing the forfeiture or sale of the property or asset subject to such Liens, or other Liens incurred or deposits made in the
ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, trade contracts,
leases, government contracts, performance and return-of-money bonds and other similar obligations incurred in the ordinary course of business (exclusive of obligations
in respect of the payment for borrowed money); 
 (h) zoning, entitlement, restriction, and other land use and environmental regulations by
Governmental Authorities and encroachments, easements, rights of way, covenants, restrictions or agreements which do not materially interfere with the continued use of any asset as currently used in the conduct of the business; 

  
 ANNEX A-30

 (Amended and Restated Note Purchase Agreement) 

 (i) any encumbrances set forth in any franchise or governing ordinance under which any
portion of the business is conducted which could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; 

(j) all rights of condemnation, eminent domain, or other similar right of any Person; 

(k) any interest of title of a lessor under leases; and 

(l) Liens securing Permitted Secured Indebtedness on a pari passu basis with the Obligations in accordance with the terms of the Collateral
Agency Agreement. 
 Notwithstanding the foregoing, the Company shall not, and shall not permit any Subsidiary, to grant any Liens securing
Indebtedness for borrowed money (other than Non- Recourse Debt incurred by a Project Finance Subsidiary) unless such Indebtedness for borrowed money is secured by Liens securing Permitted Secured Indebtedness
on a pari passu basis with the Obligations in accordance with the terms of the Collateral Agency Agreement. 

Section 10.6 Indebtedness. The Company will not, and will not cause or permit any Subsidiary or Sharyland
to, incur any
Indebtedness, and will use commercially reasonable efforts not to permit any Qualified Lessee or Subsidiaries of Specified Qualified Lessees to incur Indebtedness for borrowed
money, in each case except the following Indebtedness, which may be incurred subject to the requirements of the last paragraph of this section: 

(a) Indebtedness evidenced by the Financing Documents; 

(b) Indebtedness of the Company (i) that is not related to, and does not support, Non-Recourse
Debt of a Project Finance Subsidiary and (ii) if incurred, would not result in a breach of Section 9.9; provided that if the Indebtedness is proposed to be secured by any of the Collateral, then at least five
Business Days (or such shorter period reasonably agreed by the Required Holders) prior to the incurrence of such Indebtedness, the Company shall (x) notify the Holders of its intent to incur such Indebtedness, which notice shall set forth in
reasonable detail (A) the amount and proposed economic terms of such Indebtedness, (B) by type of lender or purchaser and (C) the proposed collateral for such Indebtedness (which proposed collateral may include any or all of the
Collateral) and (y) deliver to the Collateral Agent and the other Secured Parties an executed joinder agreement substantially in the form of Exhibit A to the Collateral Agency Agreement pursuant to which all the proposed holders of such
Indebtedness have become party to the Collateral Agency Agreement; 
 (c) (i) Non-Recourse Debt
incurred by a Project Finance Subsidiary of the Company (including Non-Recourse Debt incurred by such Project Finance Subsidiary prior to being acquired by the Company or a Subsidiary) to fund a New Project,
(ii) any Indebtedness in the form of a pledge of Capital Stock in a Project Finance Subsidiary as security for Non- Recourse Debt of such Project Finance Subsidiary and (iii) Indebtedness in the form
of Guaranties by the Company or any Subsidiary of Indebtedness of any Project Finance Subsidiary, the aggregate amount of which Guaranties shall not exceed $25,000,000 outstanding at any given time; 

  
 ANNEX A-31

 (Amended and Restated Note Purchase Agreement) 

 (d) Indebtedness of any such Qualified Lessee (i) in an aggregate principal amount for such Qualified
Lessee of up to the greater of (A) $5,000,000 and (B) an amount equal to 1% of the sum of, without duplication, (x) the total amount of the Consolidated Net Plant of such Qualified Lessee, plus (y) the total amount of the Consolidated Net Plant of any guarantor(s) of such Qualified
Lessee’s obligations under the applicable Leases, plus (z) the total amount of Leased Consolidated Net Plant, in each case on a senior secured basis and
(ii) in an aggregate principal amount for such Qualified Lessee of up to the greater of (A) $10,000,000 and (B) an amount equal to 1.5% of the sum of, without duplication, (x) the total amount of the Consolidated Net Plant of such Qualified Lessee, plus (y) the total
amount of the Consolidated Net Plant of any guarantor(s) of such Qualified
Lessee’s obligations under the applicable Leases, plus (z) the total amount of Leased Consolidated Net Plant, in each case on an unsecured subordinated basis on terms substantially similar to the terms set forth on Exhibit 2, to the extent
allowed under the Leases to which such Qualified Lessee is a party as a lessee or tenant thereunder;
provided, that for purposes
of this clause (d), all Consolidated Qualified Lessees will be treated as one Qualified
Lessee; 

(d) [reserved]; 
 (e) Indebtedness of the Company to any of its Subsidiaries, which by its terms is expressly
subordinated to the Obligations pursuant to the Subordination Terms, and Indebtedness of any Subsidiary to the Company or any other
Subsidiary of the Company not to exceed $5,000,000 at any one time outstanding and in each case to have a maturity date of less than one year; 

(f) (i) any Qualified
LesseePermitted Affiliate Loan and the aggregate principal amount of which does not exceed
$325,000,000 outstanding at any given time and (ii) other Indebtedness of Qualified
Lesseesowing to Affiliates otherwise acceptable to the Required
Holders; and 
 (g) Indebtedness of Subsidiaries of Specified Qualified Lessees incurred in an aggregate principal amount for each such Specified Qualified Lessee of up to the product of (x) such Specified Qualified Lessee’s Consolidated Net Plant (derived from its most recently prepared consolidated balance sheet, prepared in accordance with GAAP but adjusted to reverse the effects of failed sale-leaseback
accounting in a manner reasonably determined by such Specified Qualified Lessee in good faith) multiplied by (y) the lesser of (A) the sum of such Specified Qualified Lessee’s then-current PUCT-regulated debt-to-equity ratio (expressed as a percentage) and 5% or (B) 65%;
provided that such
Indebtedness must be Non-Recourse Debt to such Specified Qualified Lessee. 

(g) [reserved] 
 Indebtedness of the Company and its Subsidiaries may be incurred under this Section 10.6
only if no Default or Event of Default is, or as a result of such incurrence would be, existing. 
 Section 10.7
Loans, Advances, Investments and Contingent Liabilities. The Company will not make or permit to remain outstanding any loan or advance to, or extend credit other than credit extended in the ordinary course of business to any Person, or own,
purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any Person (collectively, “Investments”), or commit to do any of the foregoing, except (a) Permitted
Investments, (b) ownership, purchase and acquisition of equity interests in 

  
 ANNEX A-32

 (Amended and Restated Note Purchase Agreement) 

 
and capital contributions to Project Finance Subsidiaries of the Company and Wholly-Owned Subsidiaries,
including, without limitation, pursuant to
Section 9.7(b), (c) loans, advances and extensions of credit
(i) to Subsidiary Guarantors and other Wholly-Owned Subsidiaries (other than Project Finance Subsidiaries) not required to provide a Guaranty pursuant to Section 9.7(d) and (ii) to Project Finance Subsidiaries in the form of

  
 ANNEX A-33

 (Amended and Restated Note Purchase Agreement) 

 Guaranties by the Company or any Subsidiary of Indebtedness of any Project Finance Subsidiary, the aggregate
amount of which Guaranties shall not exceed $25,000,000 outstanding at any given time, (d) any
Qualified Lessee Affiliate Loan or (e) Investments made in connection with the Cross Valley Project and the Golden Spread Project prior to the Cross Valley
Project Transfer and the Golden Spread Project Transfer and (f) the ROFO
Transfers.. 
 Section 10.8 No Subsidiaries. The Company shall have no
subsidiaries other than Project Finance Subsidiaries and Wholly-Owned Subsidiaries. 
 Section 10.9 Restricted
Payments. The Company will not, directly or indirectly, make or declare any Distribution unless there does not exist and, after giving effect to the proposed Distribution, there will not exist, a Default or an Event of Default. The Company shall
deliver to the Holders and the Collateral Agent before a Distribution is made a certificate of a Responsible Officer of the Company stating that the foregoing condition has been satisfied and, if requested, providing supporting data and
calculations. 
 Section 10.10 Sale of Assets, Etc. The Company will not, nor will it cause or permit any
Subsidiary, to Transfer, or agree or otherwise commit to Transfer, any of its assets (an “Asset Sale”) except: 
 (a) the Company or a Subsidiary shall lease the System or other transmission and distribution assets and related assets pursuant to a Lease to which the Company or a Subsidiary thereof is a party; 

(a) [reserved]; 
 (b) (i) each Project Finance Subsidiary of the Company may Transfer its assets to the Company
or its Wholly-Owned Subsidiaries in accordance with Section 9.7(b); and (ii) the Company may Transfer, or suffer the Transfer of, its ownership interests in a Project Finance Subsidiary and such Project Finance
Subsidiary may Transfer, or suffer the Transfer of its assets, in each case in connection with and pursuant to the exercise of remedies under the documentation governing Non-Recourse Debt incurred by such
Project Finance Subsidiary; 
 (c) Asset Sales (i) among the Company and the Subsidiary Guarantors (or a subset thereof), (ii) among
Subsidiaries that are not Subsidiary Guarantors and (iii) from Subsidiaries to the Company or a Subsidiary Guarantor; 
 (d) in
connection with an acquisition that is not prohibited under this Agreement, (i) Asset Sales of
operating assets and related assets to a Qualified Lessee and (ii) Asset Sales of property acquired after the
Third Amendment Date that are not electric transmission or distribution assets, in each case (x) which are, in the aggregate, not material in relation to the assets acquired and
(y) upon fair and reasonable terms no less favorable to such Person than would be obtained in a comparable arms-length transaction with a Person not an Affiliate; 

(e) Permitted Liens; 
 (f)
Investments permitted by Section 10.7, transactions permitted by Section 10.2 and Distributions permitted by Section 10.9; 

  
 ANNEX A-34

 (Amended and Restated Note Purchase Agreement) 

 (g) Asset Sales made in
connection with the Cross Valley Project Transfer and the Golden Spread Project
Transfer[reserved]; 

(h)
Asset Sales consisting of goods and inventory from the Company or any Subsidiary to a Qualified Lessee at cost or on such other terms as may be approved by a majority
of the board of directors (or comparable governing body) of InfraREIT or an Affiliate thereof who are “independent” (as
such term is defined pursuant to the rules of the primary exchange on which the Capital Stock of InfraREIT or such Affiliate is listed for trading), or a majority of the
“independent” members of a committee of any such board of directors (or comparable governing
body); 

(h) [reserved]; 
 (i) ROFO
Transfers[reserved]; 

(j) Asset Sales of assets that are obsolete or no longer used or useful in such Person’s business; and 

(k) any Asset Sale so long as (i) in the good faith opinion of the Company or such Subsidiary making such Asset Sale, such Asset Sale is
in exchange for consideration having a Fair Market Value at least equal to that of the property exchanged and (ii) no Default or Event of Default exists and, immediately after giving effect to such Asset Sale, no Default or Event of Default
would exist; provided that: 
 (x) subject to clause (z) below, the sum of the Disposition Value of the property subject to such Asset
Sale under this clause (k), as it may be reduced pursuant to clause (z) below, plus the aggregate Disposition Value of all other property that was the subject of an Asset Sale under this clause (k) during the fiscal year in which such
Asset Sale occurs shall not exceed 10% of Consolidated Total Assets as of the last day of the most recently ended fiscal quarter of the Company, 

(y) subject to clause (z) below, but otherwise notwithstanding anything to the contrary set forth in this
Section 10.10, the aggregate sum of the Disposition Value of the property subject to Asset Sales under this clause (k) after the Fifth Amendment Effective Date (excluding, for the avoidance of doubt, the transactions
consummated pursuant to the Principal Merger Agreement (as defined in the Fifth Amendment)), as it may be reduced pursuant to clause (z) below, shall not exceed 25% of Consolidated Total Assets as of the last day of the most recently ended
fiscal quarter of the Company; and 
 (z) if any Indebtedness Prepayment Application and/or any Property Reinvestment Application has been
made with respect to all or a portion of the Net Proceeds Amount of any Asset Sale within one year after such Asset Sale is consummated, then the Disposition Value of the property subject to such Asset Sale shall be deemed to be reduced dollar-for-dollar by any such (1) Indebtedness Prepayment Application for purposes of determining compliance with clause (x) above and/or (2) Property
Reinvestment Application for purposes of determining compliance with clause (x) or (y) above. 
 Notwithstanding anything to the contrary herein or in
any other Note Document, it is understood and agreed that the liens on and security interests in any Collateral that is subject to an Asset Sale permitted under Section 10.10 shall be automatically released in accordance with the

  
 ANNEX A-35

 (Amended and Restated Note Purchase Agreement) 

 
Collateral Agency Agreement without the need for any further consent from, or action by, any Holder. In addition, in connection with any Asset Sale permitted under Section 10.10, the Holders
hereby agree to execute and/or deliver any documents and/or take any other action reasonably requested by the Company to further evidence or give effect to the release of liens on or security interests in any Collateral that is subject to such Asset
Sale. 
 Section 10.11 Sale or Discount of Receivables. The Company will not nor will it cause or permit any
Subsidiary to sell with recourse, or discount or otherwise sell for less than the face value thereof, any of its notes or accounts receivable. 

Section 10.12 Amendments to Organizational Documents. The Company will not nor will it cause or permit any of its Subsidiaries to, and shall use commercially reasonable efforts not to permit, any Qualified Lessee or any of its
Subsidiaries to, amend, supplement, terminate, replace or waive any provision of its operating agreement or other organization documents after the Third Amendment
Date. Notwithstanding this Section 10.2, the Company, its Subsidiaries, any Qualified
Lessee and its Subsidiaries may, without the consent of the Holders, amend their respective operating agreement or similar organizational documents as may be required to facilitate or
implement any of the following: 
 (a) to reflect (i) the contribution of any new capital or additional capital by new or
existing members or partners of such Person, (ii) the addition of new members or partners of such Person, or (iii) any adjustment, termination, reduction or redemption of equity interests of its members, partners or other holders of equity
interests or the issuance of additional equity interests in such Person; provided, that after giving effect to any such changes, no Event of Default would exist under Sections 10.8, or 1211(no); 

(b) to reflect a change that does not adversely affect any Holders in any material respect, or to cure any ambiguity, or correct or supplement
any provision, not inconsistent with law or with the provisions of this Agreement; 
 (c) to satisfy any requirements, conditions, or
guidelines contained in any order, directive, opinion, ruling or regulation of a federal or state agency or contained in federal or state law; 

(d) to take actions to avoid any material adverse consequences to such Person as a result of any change in law or interpretation of law
applicable to Persons subject to regulation by the PUCT and FERC; and 

  
 ANNEX A-36

 (Amended and Restated Note Purchase Agreement) 

 (e) to effect the dissolution, liquidation, merger or consolidation of any Person that is
not otherwise prohibited under this Agreement. 
 The Company will provide prompt notice to the Holders upon taking any such action under the foregoing
sentence of this Section 10.12. 
 Section 10.13 Sale and Lease-Back. Except for the System Leases, the CREZ Lease and any other Lease,
theThe Company will not, nor will it cause or permit any
Subsidiary to, enter into any arrangement providing for the leasing by the Company or any Subsidiary of real or personal property which has been or is to be Transferred by the Company or such Subsidiary to a lender or investor or to any Person to
whom funds have been or are to be advanced by such lender or investor on the security of such property or rental obligations of the Company or any Subsidiary. 

Section 10.14 ERISA Compliance(a) Relationship of Vested Benefits to Plan Assets.
The Company will not as of the last day of any calendar year permit any Plan to be “at risk” within the meaning of Section 303 of ERISA to the extent such action could reasonably be expected to result in a Material Adverse Effect.
The Company and its ERISA Affiliates will not incur withdrawal liabilities (and will not become subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate
could reasonably be expected to result in a Material Adverse Effect. 
 (b) Valuations. For the purposes of clause (a) above, all
assumptions and methods used to determine the actuarial valuation of vested and unvested employee benefits under any Plan at any time maintained by the Company and the present value of assets of any such Plan shall be reasonably consistent with
those determinations made for purposes of Section 5.13. 
 (c) Prohibited Actions. The Company will not,
nor, as applicable, will any Plan at any time maintained by the Company: 
 (i) engage in any action that could reasonably be
expected to cause the execution and delivery of this Agreement and the issuance and sale of the Notes to result in a non-exempt “prohibited transaction” (as such term is defined in Section 406
of ERISA and Section 4975(c) of the Code); 
 (ii) fail to meet the minimum funding standards of Section 302 of
ERISA or Sections 412 and 430 of the Code, or seek or obtain a waiver thereof or fail to make any required contribution to a Multiemployer Plan; or 

(iii) terminate any such Plan in a manner which could result in the imposition of a Lien on the Property of the Company
pursuant to Section 4068 of ERISA that could reasonably be expected to result in a Material Adverse Effect. 

  
 ANNEX A-37

 (Amended and Restated Note Purchase Agreement) 

 Section 10.15 No Margin Stock. Anything herein contained to the contrary
notwithstanding, the Company will not, nor will it permit any Subsidiary to, make or authorize any investment in, or otherwise purchase or carry, any margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal
Reserve System of the United States) that violates the provisions, or for any purpose that violates the provisions, of Regulation U of the Board of Governors of the Federal Reserve System of the United States. 

Section 10.16 Project
Documents.(a) The Company will not, and will not
permit any Subsidiary to, amend, modify, supplement, replace, renew, extend, terminate or waive any provision of any Lease to which the Company or such Subsidiary is party, or consent to any amendment, modification, supplement, replacement, renewal,
extension, termination or waiver of any such Lease except (i) the consummation of the FERC Lease Assumptions in connection with the FERC Merger,
(ii) to the extent the same could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect and (iii) if the Company reasonably believes, after giving effect thereto, the Company will generate sufficient revenue and hold sufficient assets to satisfy the requirements of
Section 
9.9.
[Reserved]. 

(b) The Company shall use commercially reasonable efforts to ensure that no
Specified Qualified Lessee enters into any lease of transmission or distribution facilities other than (i) the Leases (including maintaining or entering into new
Leases or replacement Leases and amending or modifying Leases to the extent not prohibited under this Agreement) and (ii) any other leases consented to by
Required Holders. 
 Section 10.17
Regulation.(a) The Company shall not be or become, and shall use commercially reasonable efforts not to permit any Specified Qualified Lessee to be or become, subject to FERC jurisdiction as a
public utility under the FPA; provided, however, that the Company shall not be in default of the forgoing negative covenant if the Company or any Specified
Qualified Lessee becomes subject to FERC jurisdiction under the FPA solely as a result of a change to the FPA or in FERC’s interpretation thereof or regulations thereunder, if the
Company or such Specified Qualified Lessee takes all necessary actions to comply with applicable FERC requirements and
the operation of the System is uninterrupted; and.

 (b) The Company shall not, and shall use commercially reasonable
efforts to cause any Specified Qualified Lessee not to violate in any material respect any regulation or order of the Public Utility Commission of Texas applicable to it. 

(c) None of theThe Company nor
any Specified Qualified Lessee shall not own, operate or control any electrical generating, transmitting or distribution facility, nor effect or control any sale of electricity, outside of the ERCOT balancing area authority except (i) as permitted
by FERC, as set forth in its declaratory order issued in Docket no. EL07-93-000 or (ii) interconnected transmission or distribution assets or systems located
substantially in the State of Texas or deriving a majority of their revenue from customers within the State of Texas. 

Section 10.18 Swaps. The Company will not, nor will it permit any Subsidiary to, enter into any Swap Contracts,
except that the Company and its Project Finance Subsidiaries may enter into Swap Contracts solely to hedge interest rate risk and not for speculative purposes. 

  
 ANNEX A-38

 (Amended and Restated Note Purchase Agreement) 

 Section 10.19 Additional Financial Covenants. If the Company shall
at any time enter into one or more agreements pursuant to which Indebtedness in an aggregate principal amount greater than $25,000,000 shall be outstanding and such agreement contains one or more financial covenants which are more restrictive on the
Company and its Subsidiaries than the financial covenants contained in Section 9.9 of this Agreement, then such more restrictive financial covenants and any related definitions (the “Additional Financial
Covenants”) shall automatically be deemed to be incorporated into Section 9.9 of this Agreement by reference from the time such other agreement becomes binding upon the Company until such time as such other
Indebtedness is repaid in full and all commitments related thereto are terminated; provided, that if at the time of any such repayment or the termination of any such commitment a Default or Event of Default shall exist under this Agreement,
then such Additional Financial Covenants shall continue in full force and effect under this Agreement so long as such Default or Event of Default continues to exist. So long as such Additional Financial Covenants shall be in effect, no modification
or waiver of such Additional Financial Covenants shall be effective unless the Required Holders shall have consented thereto pursuant to Section 17.1 hereof. Promptly but in no event more than 5 Business Days following the
execution of any agreement providing for Additional Financial Covenants, the Company shall furnish each Holder with a copy of such agreement. Upon written request of the Required Holders, the Company will enter into an amendment to this Agreement
pursuant to which this Agreement will be formally amended to incorporate the Additional Financial Covenants on the terms set forth herein. 

Section 10.20 Burdensome Agreements . The Company will not enter into or permit any Subsidiary Guarantor or
Subsidiary of a Subsidiary Guarantor to enter into any Contractual Obligation that limits the right (a) of such Subsidiary to make Distributions to the Company or any Subsidiary Guarantor or to otherwise transfer property to the Company or any
Subsidiary Guarantor, (b) of any Subsidiary of the Company to guarantee the Indebtedness of the Company or (c) of the Company or any Subsidiary Guarantor to create, incur, assume or suffer to exist Liens on property of such Person, in each
case except for (i) restrictions arising under any Requirement of Law, (ii) customary restrictions and conditions contained in any agreement relating to the sale or other disposition of assets not prohibited under this Agreement pending
the consummation of such sale or other disposition, (iii) this Agreement, the other Note Documents, Permitted Liens (other than Liens permitted under Section 10.5(k)), any document or instrument evidencing or granting
any such Permitted Liens and the agreements listed on Schedule 10.20; (iv) any Contractual Obligation relating to Indebtedness permitted pursuant to Section 10.6 (including Liens permitted pursuant to
Section 10.5) to the extent, in the good faith judgment of the Company, such limitations and requirements described in clauses (a), (b) or (c) above (x) are on customary market terms for Indebtedness of such type at
the time entered into, so long as the Company has determined in good faith that such restrictions would not reasonably be expected to impair in any material respect the ability of the Note Parties to meet their ongoing payment obligations under the
Note Documents, or (y) are not materially more restrictive, taken as a whole with respect to the Company and the Subsidiaries than the restrictions in the Note Documents, (v) with respect to clause (c), any negative pledge incurred or
provided in favor of any holder of Indebtedness permitted under Section 10.6(c) solely to the extent any such negative pledge relates to the property financed by or the subject of such Indebtedness, (vi) non-assignment provisions in franchise agreements, licenses, easements, leases, indemnities or other agreements and (vii) 

  
 ANNEX A-39

 (Amended and Restated Note Purchase Agreement) 

 restrictions on any property or any Person contained in any asset or stock sale agreement or other similar
agreements entered into with respect to such property or Person to the extent (x) the sale or other disposition of such property or Person is not prohibited by this Agreement and (y) such restrictions relate only to the property or Person
to be sold or otherwise disposed of. 
 SECTION 11. EVENTS OF DEFAULT. 

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: 

(a) the Company defaults in the payment of any principal or Yield- Maintenance Amount, if any, on any Note when the same becomes due and
payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or 
 (b) the Company defaults in the payment
of any interest on any Note, fees or other amounts for more than five days after the same becomes due and payable; or 
 (c) the Company
defaults in the performance of or compliance with any term contained in Section 7.1(d), Section 9.9 or Section 10; or 

(d) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections
11(a), (b) and (c)) or in any other Note Document (other than those referred to in another paragraph of this Section 11) and such default is not remedied within 30 days after the earlier of (i) a
Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from the Collateral Agent or Holder of a Note (any such written notice to be identified as a “notice of
default” and to refer specifically to this Section 11(d)); or 
 (e) any representation or warranty made in
writing by or on behalf of the Company or by any officer of the Company in this Agreement or any other Note Document or in any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any
material respect on the date as of which made; or 

(f) [reserved]; or 
 (f) with respect to any Lease to which the Company or a Subsidiary thereof is a party (other than
Leases pursuant to which the Company
recognized revenue, in the aggregate, that constituted 10% or less of the total consolidated revenue of the Company and its Subsidiaries (other than Project Finance Subsidiaries) as set forth on the face of the consolidated statements of
operations for the four consecutive fiscal quarter period that ended on the date of the financial statements most recently delivered pursuant to
Section 
7.1), (i) any such Lease is declared to be null and void or is otherwise unenforceable, or any party thereto claims that any such agreement is unenforceable
(unless, within 90 days after such declaration or claim, replaced by a Lease that complies with the provisions of
Section 
10.16), (ii) one or more payment defaults in an amount in excess of $10,000,000 in the aggregate occurs across all such Leases, after giving effect to any cure periods specified therefor
or (iii) any default or event of default (other than those referred to in clause
(i) or (ii) of this
Section 11(f)) occurs under any such Lease that could reasonably be expected to have a Material Adverse Effect and such failure continues for more than 90 days; or 

  
 ANNEX A-40

 (Amended and Restated Note Purchase Agreement) 

 (g) (i) the Certificate of Conveniences and Necessity (#30192,     #30026, 

(g) #30114 and #30191) (i) any
Certificate of Conveniences and Necessity issued or transferred by the
Public Utility Commission of Texas to Sharyland and, prior to the FERC Merger, the FERC Operator,
the Company authorizing the ownership and operation of the System is terminated without being timely replaced, revoked or otherwise is not in
effect; or (ii) except as could not reasonably be expected to result in a Material Adverse Effect, any other Required Permit is terminated without being timely replaced (if the terminated Permit continues to be a Required Permit), revoked or
otherwise is not in effect; provided, however, that the termination without immediate renewal of any franchise agreement pursuant to which the Qualified Lessee operating
the applicable portion of the System is authorized to operate the System and collect fees for services shall not constitute an Event of Default if the parties to the franchise agreement continue to perform in accordance with the terms of such agreement notwithstanding the termination;
or 
 (h) any Security Document or any other security document entered into pursuant to Section 9.7 ceases
to give the Collateral Agent perfected first priority Liens (subject to Permitted Liens) purported to be created thereby in a material portion of the Collateral, taken as a whole, for any reason other than as expressly permitted hereunder or
thereunder (including by amendment, waiver and/or consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of the Obligations; or any Note Document, at any time after its execution and delivery and for any reason
other than as expressly permitted hereunder or thereunder (including by amendment, waiver and/or consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of all the Obligations, ceases to be in full force and
effect; or any Note Party contests in any manner the validity or enforceability of any Note Document; or any Note Party denies that it has any further liability or obligation under any Note Document or purports to revoke, terminate or rescind any
Note Document, other than, for each of the foregoing, as expressly permitted hereunder or thereunder (including by amendment, waiver and/or consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of the
Obligations; or 
 (i) without limiting clause (h), (i) the Company or any
Specified Qualified Lessee is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that
is outstanding in an aggregate principal amount of at least, in the case of the Company or Sharyland,
$10,000,000 or, in the
case of any
other Specified Qualified Lessee, $2,000,000, in each case beyond any period of grace provided with respect
thereto, or (ii) the Company or any Specified Qualified Lessee is in default in the performance of or compliance
with any term of any evidence of any Indebtedness (including any mortgage, indenture or other agreement relating thereto), which Indebtedness, in the case of the Company or
Sharyland, is in an aggregate outstanding principal amount of at least $10,000,000 (for each such Person individually)
or, in the case of any other Specified Qualified Lessee, is an amount that
could reasonably be expected to result in a Material Adverse Effect, and as a consequence of such default or condition one or more Persons are entitled to declare such Indebtedness to be due
and payable before its stated maturity or before its regularly scheduled dates of payment, (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of
Indebtedness to convert such Indebtedness into equity interests), Indebtedness of the Company or Sharyland in an
aggregate outstanding principal amount of at least $10,000,000 (for each such Person individually) has become or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iv) a default
or an event of default occurs under the 2009 Note Agreement or the RBC Agreement, and such failure continues for more than any cure period specified therefor and has not otherwise been waived; or 

  
 ANNEX A-41 

(Amended and Restated Note Purchase Agreement) 

 (j) the Company or
Sharyland or, to the extent the same
could reasonably be expected to result in a Material Adverse Effect, any other Qualified Lessee (i) is generally not paying, or admits in writing its inability to pay, its debts as they
become due, (ii) files, or consents by answer or otherwise to the filing against it or, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy,
insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or 

(k) a court or Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company,
or any Subsidiary, Sharyland or, to the extent the same could reasonably be expected to result in a Material Adverse Effect, any other Qualified
Lessee, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or
approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
winding-up or liquidation of any such Person or any such petition shall be filed against any such Person and such petition shall not be dismissed within 60 days; or 

(l) a final judgment or judgments for the payment of money is rendered against the Company or a Qualified Lessee, in the case of the Company or Sharyland, aggregating in excess of $10,000,000 or $2,000,000, respectively, or, in the case of any other Qualified Lessee, to the extent the same could reasonably be expected to result in a Material Adverse Effect, other than, in each case, judgments payable by the Company or such Qualified
Lessee, rendered in connection with the condemnations in favor thereof, and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are
not discharged within 60 days after the expiration of such stay; or 
 (m) if (i) any Plan shall fail to satisfy the minimum
funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under Section 412 of the Code, (ii) a notice of intent to terminate any
Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or
any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) any Plan shall be “at- risk” within the meaning of Section 303 of ERISA as of the last day of any
calendar year, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit
plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase
the liability of the Company thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse
Effect; or 

  
 ANNEX A-42

 (Amended and Restated Note Purchase Agreement) 

 (n) Hunt Family Members
cease to Control Sharyland, or any Person other than a Qualified Lessee shall be the lessee under any lease with respect to the
System[reserved]; or 

(o) (i) InfraREIT PartnersOncor shall cease to own or control, directly or indirectly, 90% of the outstanding
equity interest of the Company; or (ii) Hunt Family Members cease to own and control,
directly or indirectly, at least 5% of the outstanding equity interests of InfraREIT Partners, unless, in the case of clause (ii), (x) the general partner of InfraREIT Partners has become a publicly held company, or (y) the Company has total assets on its balance sheet valued at $1,000,000,000 or greater..

 As used in Section 11(m), the terms “employee benefit plan” and “employee welfare benefit
plan” shall have the respective meanings assigned to such terms in section 3 of ERISA. 
 SECTION 12. REMEDIES ON DEFAULT, ETC. 

Section 12.1 Acceleration. (a) If an Event of Default with respect to the Company described in
Section 11(j) or (k) (other than an Event of Default described in clause (i) of Section 11(j) or described in clause (vi) of Section 11(j) by virtue of
the fact that such clause encompasses clause (i) of Section 11(j)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 

(b) If any other Event of Default has occurred and is continuing, any Holder or Holders of more than 51% in principal amount of the Notes at
the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 

(c) If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any
Holder or Holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable. 

Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith
mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Yield-Maintenance Amount determined in
respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each Holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a
Yield-Maintenance Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances. 

  
 ANNEX A-43

 (Amended and Restated Note Purchase Agreement) 

 Section 12.2 Other Remedies. If any Default or Event of Default
has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the Holder of any Note at the time outstanding may proceed to protect
and enforce the rights of such Holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the
terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 

Section 12.3 Rescission. At any time after any Notes have been declared due and payable pursuant to
Section 12.1(b) or (c), the Holders of not less than 51% in principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the
Company has paid all overdue interest on the Notes, all principal of and Yield-Maintenance Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and
Yield-Maintenance Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due
solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been
waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3
will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 

Section 12.4 No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay on the part of any
Holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such Holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Note upon any Holder
thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under
Section 15, the Company will pay to the Holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such Holder incurred in any enforcement or collection under this
Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements. 
 SECTION 13.
REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES. 
 Section 13.1 Registration of Notes. The Company shall keep at
its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each Holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes
shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and Holder thereof for all purposes hereof, and the Company
shall not be affected by any notice or knowledge to the contrary. The Company shall give to any Holder of a Note that is an Institutional Investor, promptly upon request therefor, a complete and correct copy of the names and addresses of all
registered Holders of Notes. In addition to and not in limitation of any representations contained herein, each Holder acknowledges and agrees that the Notes have not been registered under the Securities Act and may not be transferred except
pursuant to registration or an exemption therefrom and in compliance with Section 13.2(b) hereof. 

  
 ANNEX A-44

 (Amended and Restated Note Purchase Agreement) 

 Section 13.2 Transfer and Exchange of Notes. (a) Subject to
compliance with Section 13.2(b), upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), for registration of transfer or exchange
(and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered Holder of such Note or such Holder’s attorney duly authorized in writing and accompanied by the
relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or
more new Notes (as requested by the Holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such Holder may request
and shall be substantially in the form of Exhibit 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest
shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than
$1,000,000, provided that if necessary to enable the registration of transfer by a Holder of its entire holding of Notes, one Note may be in a denomination of less than $1,000,000. Any transferee, by its acceptance of a Note registered in its name
(or the name of its nominee), shall be deemed to have made the representations set forth in Section 6.1 and Section 6.2. 

(b) Each Holder hereby agrees that it will not offer for sale or sell any of its Notes or disclose any Confidential Information to any
prospective transferee of the Notes, other than to an Affiliate, or to another Holder without first delivering written notice to the Company (a “Right of First Offer Notice”) of its intent to sell such Notes and disclose such
Confidential Information. Such Right of First Offer Notice shall contain a reasonably detailed description of the proposed terms of such sale, including, without limitation, the proposed purchase price (the “Proposed Purchase
Price”) for such Notes and the names of up to ten prospective purchasers. If the Company so desires it may, within 5 Business Days of the receipt of such Right of First Offer Notice, inform such Holder in writing of its intent to purchase,
or have an Affiliate or Institutional Investor designated by the Company purchase, such Notes (a “Purchase Notice”) from the Holder delivering such Right of First Offer Notice at the Proposed Purchase Price, provided, however, that
if at such time a Default or Event of Default shall have occurred and be continuing, the Company shall not purchase, and shall not allow any Affiliate or Institutional Investor designated by the Company to purchase, the Notes of the Holder
delivering such Right of First Offer Notice. The aggregate principal amount of the Notes specified in such Purchase Notice shall be purchased by the Company, or such Affiliate or Institutional Investor, for the Proposed Purchase Price, together with
accrued interest on such Notes to the purchase date, on the date specified by the Company in such Purchase Notice, which shall be not more than 30 days following delivery of such Purchase Notice. If a Holder does not receive a Purchase Notice from
the Company within 5 Business Days after the delivery of a Right of First Offer Notice to the Company, such Holder shall have the right to sell its Notes identified in such Right of First Offer Notice to one or more of the prospective purchasers
identified in such Right of First Offer 

  
 ANNEX A-45

 (Amended and Restated Note Purchase Agreement) 

 
Notice for a price which is not less than the Proposed Purchase Price identified in such Right of First Offer Notice for a period of 120 days from the date of such Right of First Offer Notice. In
the event that the prospective purchasers identified by a Holder in a Right of First Offer Notice shall decline to purchase the Notes within such 120 day period, then the Holder may identify up to 10 additional Institutional Investors through a new
Right of First Offer Notice. 
 Section 13.3 Replacement of Notes. Upon receipt by the Company at the address and
to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall
be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 

(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the Holder of such Note is, or is
a nominee for, an original Purchaser or another Holder of a Note with a minimum net worth of at least $100,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or

 (b) in the case of mutilation, upon surrender and cancellation thereof, 

within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from
the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 

SECTION 14. PAYMENTS ON NOTES. 

Section 14.1 Place of Payment. Subject to Section 14.2, payments of principal, Yield-
Maintenance Amount, if any, and interest becoming due and payable on the Notes shall be made in New York City, New York at the principal office of JPMorgan Chase Bank National Association in such jurisdiction. The Company may at any time, by notice
to each Holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction.

 Section 14.2 Home Office Payment. So long as any Purchaser or its nominee shall be the Holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Yield- Maintenance Amount, if any, and interest by the method and at
the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose,
without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser
shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to
Section 14.1. Prior to any sale or other disposition of any Note held by a Purchaser 

  
 ANNEX A-46

 (Amended and Restated Note Purchase Agreement) 

 
or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note
to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect
transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 14.2. 

SECTION 15. EXPENSES, ETC. 

Section 15.1 Transaction Expenses. Whether or not the transactions contemplated hereby are consummated, the Company
will pay all costs and expenses (including reasonable attorneys’ fees of one firm of special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other Holder of a Note in
connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective), including, without limitation:
(a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative
demand issued in connection with this Agreement or the Notes, or by reason of being a Holder of any Note, but only to the extent such subpoena or legal proceeding arises out of matters related to the Company, (b) the costs and expenses,
including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or in connection with any work-out or restructuring of the transactions contemplated hereby and
by the Notes and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO provided. The Company will pay, and will save each Purchaser and each
other Holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other Holder in connection with its purchase of the Notes). 

Section 15.2 Survival. The obligations of the Company under this Section 15 will survive
the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement. 

SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or
transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent Holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser
or any other Holder of a Note; provided that no representation or warranty shall be deemed to be made as of any time other than the date of execution and delivery of this Agreement or such other document, certificate, instrument or agreement
containing such representation or warranty. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this
Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter
hereof. 

  
 ANNEX A-47

 (Amended and Restated Note Purchase Agreement) 

 SECTION 17. AMENDMENT AND WAIVER. 

Section 17.1 Requirements. This Agreement and the Notes may be amended, and the observance of any term hereof or of
the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of
Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing, and (b) no such amendment or waiver
may, without the written consent of the Holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any
prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Yield-Maintenance Amount on, the Notes, (ii) change the percentage of the principal amount of the Notes the
Holders of which are required to consent to any such amendment or waiver, or (iii) amend any of Section 8, 11(a), 11(b), 12, 17 or 20. 

Section 17.2 Solicitation of Holders of Notes. 

(a) Solicitation. The Company will provide each Holder of the Notes (irrespective of the amount of Notes then owned by it) with
sufficient information, sufficiently far in advance of the date a decision is required, to enable such Holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions
hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each Holder of outstanding Notes promptly
following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite Holders of Notes. 
 (b)
Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any Holder of
Notes as consideration for or as an inducement to the entering into by any Holder of Notes of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or
other credit support concurrently provided, on the same terms, ratably to each Holder of Notes then outstanding even if such Holder did not consent to such waiver or amendment. 

Section 17.3 Binding Effect, etc. Any amendment or waiver consented to as provided in this
Section 17 applies equally to all Holders of Notes and is binding upon them and upon each future Holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or
waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the
Holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any Holder of such Note. As used herein, the term “this Agreement” and references thereto shall mean this
Agreement as it may from time to time be amended or supplemented. 

  
 ANNEX A-48

 (Amended and Restated Note Purchase Agreement) 

 Section 17.4 Notes Held by Company, etc. Solely for the purpose of
determining whether the Holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the
taking of any action provided herein or in the Notes to be taken upon the direction of the Holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its
Affiliates shall be deemed not to be outstanding. 
 SECTION 18. NOTICES. 

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a
confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with
charges prepaid). Any such notice must be sent: 
 (i) if to any Purchaser or its nominee, to such Purchaser or nominee at
the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing, 

(ii) if to any other Holder of any Note, to such Holder at such address as such other Holder shall have specified to the
Company in writing, and 

(iii)
if to the Company, to the Company at 

Sharyland
Distribution & Transmission Services, L.L.C. 

1616 Woodall Rogers
Freeway 

Dallas, TX 75202 

Attn: 
Treasurer 

Email: 
treasury@oncor.com 

    
        Kevin.Fease@oncor.com 
 (iii) if to the Company, to the Company at 1900 N. Akard Street, Dallas, TX
75201-2300, facsimile: (214) 855-6965 to the
attention of W. Kirk Baker, or at such other address as the Company shall have specified to the Holder of each Note in writing. 

Notices under this Section 18 will be deemed given only when actually received. 

SECTION 19. REPRODUCTION OF DOCUMENTS. 

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may
hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be

  
 ANNEX A-49

 (Amended and Restated Note Purchase Agreement) 

 
reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees
and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not
such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company
or any other Holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 

  
 ANNEX A-50

 (Amended and Restated Note Purchase Agreement) 

 SECTION 20. CONFIDENTIAL INFORMATION. 

For the purposes of this Section 20, “Confidential Information” means Information delivered to any
Purchaser by or on behalf of the Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement, provided that such term does not include information that: (a) other than as a result of disclosure by any
Purchaser or its employees or agents in violation of this Section 20 was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) other than as a result of disclosure by any
Purchaser or its employees or agents in violation of this Section 20 subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) other than
as a result of disclosure by any Purchaser or its employees or agents in violation of this Section 20 otherwise becomes known to such Purchaser other than through disclosure by the Company or (d) constitutes financial
statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. “Information” means information concerning the Company or its Subsidiaries, irrespective of its source or form of
communication, furnished by or on behalf of the Company or any of its Subsidiaries, including without limitation notes, analyses, compilations, studies or other documents or records prepared by any Purchaser, which contain or reflect or were
generated from information supplied by or on behalf of the Company or its Subsidiaries. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to
protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates
(to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information
substantially in accordance with the terms of this Section 20, (iii) any other Holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation
therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which it offers to purchase any security of the
Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state regulatory authority having jurisdiction over
such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other
Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in
connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in
the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes and this Agreement. Each Holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the
benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any Holder of a Note of information required to be delivered to such Holder
under this Agreement or requested by such Holder (other than a Holder that is a party to this Agreement or its nominee), such Holder will enter into an agreement with the Company embodying the provisions of this Section 20. 

  
 ANNEX A-51

 (Amended and Restated Note Purchase Agreement) 

 SECTION 21. SUBSTITUTION OF PURCHASER. 

Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the Notes that it has agreed to purchase
hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of
the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall
be deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the Notes then held by
such Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to
such Affiliate, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original Holder of the Notes under this Agreement. 

SECTION 22. MISCELLANEOUS. 

Section 22.1 Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf
of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent Holder of a Note) whether so expressed or not. 

Section 22.2 Payments Due on Non-Business Days. Anything in this Agreement
or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of
principal of or Yield-Maintenance Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest
payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the
additional days elapsed in the computation of interest payable on such next succeeding Business Day. 
 Section 22.3
Accounting Terms. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all
computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP. For purposes of determining compliance with any financial covenants contained in
this Agreement, any election by the Company to measure an item of Indebtedness using fair value (as permitted by Statement of Financial Accounting Standards No. 159 or any similar accounting standard) shall be disregarded and such determination
shall be made as if such election had not been made. 

  
 ANNEX A-52

 (Amended and Restated Note Purchase Agreement) 

 Section 22.4 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 

Section 22.5 Construction, etc. Each covenant contained herein shall be construed (absent express provision to the
contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein
refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. For the avoidance of doubt, all Schedules and Exhibits
attached to this Agreement shall be deemed to be a part hereof. 
 Section 22.6 Counterparts. This Agreement may
be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto. 
 Section 22.7 Governing Law. This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that
would permit the application of the laws of a jurisdiction other than such State. 
 Section 22.8 Jurisdiction and
Process; Waiver of Jury Trial. (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York,
over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise,
any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient forum. 
 (b) The Company consents to process being
served by or on behalf of any Holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, return receipt requested, to it at its address specified in Section 18 or at such other address of which such Holder shall then have been notified pursuant to said Section. The Company agrees that
such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid
personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service. 

  
 ANNEX A-53

 (Amended and Restated Note Purchase Agreement) 

 (c) In addition to and notwithstanding the provisions of
Section 22.8(b) above, the Company hereby irrevocably appoints CT Corporation System as its agent to receive on its behalf and its property service of copies of the summons and complaint and any other process which may be
served in any action or proceeding. Such service may be made by mailing or delivering a copy of such process to the Company, in care of the process agent at 111 Eighth Avenue, 13th Floor, New York, New York 10011, and the Company hereby irrevocably
authorizes and directs the process agent to accept such service on its behalf. If for any reason the process agent ceases to be available to act as process agent, the Company agrees immediately to appoint a replacement process agent satisfactory to
the Required Holders. 
 (d) Nothing in this Section 22.8 shall affect the right of any Holder of a Note to serve
process in any manner permitted by law, or limit any right that the Holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in
one jurisdiction in any other jurisdiction. 
 (e) The parties hereto hereby waive trial by jury in any action brought on or with respect to
this Agreement, the Notes or any other document executed in connection herewith or therewith. 
 Section 22.9
Transaction References. The Company and the Holders shall not refer to the other on an internet site or in marketing materials, press releases, published “tombstone” announcements or any other print or electronic medium, except with
the referenced party’s prior written consent, which may be withheld at its sole discretion. 
 * * * * * 

  
 ANNEX A-54

 (Amended and Restated Note Purchase Agreement) 

 DEFINED TERMS 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: 

“2009 Note Agreement” means the Note Purchase Agreement, dated December 31, 2009, among the Company and the holders of
2029 Notes, issued thereunder, as the same may be amended, restated, supplemented or otherwise modified from time to time. 
 “2029
Notes” means the Company’s 7.25% Senior Notes due December 30, 2029, issued under the 2009 Note Agreement. 

“Additional Financial Covenants” shall have the meaning given to it in Section 10.19 hereof. 

“Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly
through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person and, with respect to the Company, shall include any Person beneficially owning or holding, directly or indirectly, 10% or more of
any class of voting or equity interest of the Company or any corporation of which the Company beneficially owns or holds, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests; provided, however, that this definition shall at all times exclude owners or investors in InfraREIT Partners, L.P., except for Hunt Family Members. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. 

“Agreement” is defined in the introductory paragraph of this Agreement. 

“Amortization Schedule” is defined in Section 8.1(a). 

“Anti-Terrorism Order” means Executive Order No. 13,224 of September 24, 2001, Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended. 

“Approved Accountant” is defined in Section 7.1(b)(A). 

“Blocked Person” means (i) an OFAC Listed Person, (ii) an agent, department, or instrumentality of, or a Person
otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC Sanctions Program, or
(iii) a Person otherwise blocked, subject to sanctions under or engaged in any activity in violation of U.S. Economic Sanctions. 

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

  
 SCHEDULE
B-1 
 (To Annex A) 

 “Capital Lease” means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP. 

“Capital Stock” of any Person shall mean any and all shares, interests, rights to purchase, warrants, options, participation,
patronage capital or other equivalents of or interest in (however designated) equity of such Person, including any preferred stock, any limited or general partnership interest and any limited liability company membership interest. 

“Cash Flow” means, for any period, the sum of the following (without duplication): (i) all cash paid toOperating Cash Flow of the Company during such period under the Leases, (ii) all cash distributions
received by the Company from Project Finance Subsidiaries of the Company during such period, (iii) all interest and investment earnings, if any, paid to the Company during such period on amounts on deposit in the account created under the Deposit
Agreement, (iv) revenues, if any, received by or on behalf of the Company during such period under any insurance policy as business interruption insurance proceeds, (v) direct cash equity investments made by TDC in the Company during such
period (excluding equity contributed to a Project Finance Subsidiary) in an amount not greater than the amount necessary to cause the Company to be in compliance with the financial covenants set forth in Section 9.9 (each
such investment, an “Equity Cure”); provided, however, that during any period of four consecutive fiscal quarters, “Cash Flow” shall include an Equity Cure in no more than two of such quarters and
(vi) proceeds of any borrowing made after the date hereof to the extent used to finance the payment of bullet or balloon installments of Indebtedness for borrowed money. 

“Cash Flow Available for Debt Service” for any period, means (i) Cash Flow received during such period minusplus (ii)
 (A) all O&M Costsinterest
expense paid during such period
andminus
(Biii) if an Equity Cure has been made in any fiscal quarter during the period for which Cash Flow Available for Debt Service is calculated, the lesser of the aggregate amount of (x) such Equity Cure during such
period and (y) the aggregate amount of cash distributions paid by the Company during such period. 
 “CISADA”
means the Comprehensive Iran Sanctions, Accountability and Divestment Act. 
 “Closing” is defined in Section 3. 

“Closing Date” means July 13, 2010. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated
thereunder from time to time. 
 “Collateral” means, collectively, the collateral described in each of the Security
Documents. 
 “Collateral Agency Agreement” means the Second Amended and Restated Collateral Agency Agreement, dated as of
the Third Amendment Date, among the Collateral Agent, the Company, the Holders and the holders of the other Permitted Secured Indebtedness from time to time party thereto (as the same may be amended, restated, amended and restated, supplemented,
joined or otherwise modified from time to time). 

  
 SCHEDULE
B-2 
 (To Annex A) 

 “Collateral Agent” means The Bank of New York Mellon Trust Company, N.A., a
national association, acting in its capacity as collateral agent for itself and the other Secured Parties, or its successors in such capacity appointed pursuant to the terms of the Collateral Agency Agreement. 

“Company” means Sharyland Distribution & Transmission Services, L.L.C., a Texas limited liability company, or any
successor that becomes such in the manner prescribed in Section 10.2. 
 “Confidential
Information” is defined in Section 20. 
 “Consolidated Net Plant” means, with respect
to any Person, as of the date of determination, the net plant set forth on the face of the consolidated balance sheet of such Person or absent such amount on the consolidated balance sheet, the total plant of such Person on a consolidated basis
minus accumulated depreciation set forth in the footnotes of the consolidated financial statements, in each case for the fiscal quarter ended on the date of the last financial statements delivered pursuant to Section 7.1.

 “Consolidated Qualified Lessee” shall mean any
Qualified Lessee that is consolidated into the financial statements of another Qualified Lessee. 

“Consolidated Total Assets” means, at any time, the total assets of the Company and its Subsidiaries which would be shown on a
consolidated balance sheet of the Company and its Subsidiaries as of such time prepared in accordance with GAAP. 
 “Contractual
Obligation” shall mean as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. 
 “Controlled
Entity” means (i) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (ii) if the Company has a parent company, such parent company and its Controlled Affiliates. 

“CREZ
Lease” shall mean (A) prior
to the effectiveness of the CREZ Lease Amendment and Restatement, the
Amended and Restated Lease Agreement (CREZ Assets) dated as of April 30, 2013, between SP, as lessor, and Sharyland, as lessee, and (B) upon the effectiveness of the
CREZ Lease Amendment and Restatement, the CREZ Lease Amendment and Restatement, as such lease may be amended, restated, supplemented or otherwise modified from time to time, or any new lease entered into in replacement thereof, in accordance with
Section 9.8(b)
and/or 

10.12 of this Agreement, as
applicable. 

  
 SCHEDULE
B-3 
 (To Annex A) 

“CREZ Lease Amendment and Restatement” shall mean the Second Amended and Restated Lease Agreement (CREZ Assets), between SP, as lessor, and Sharyland, as lessee, with respect to the CREZ Project.

 “CREZ Project” shall
mean the five transmission
lines, four substations and other facilities in Texas identified and awarded to Sharyland by the Public Utility
Commission of Texas (the “PUCT”
) in Docket Number 37902. 

“Cross Valley Project” means the approximately 49 mile transmission line in South Texas near the Mexican border, known as the
“North Edinburg to Loma Alta 345 kV single- circuit transmission
line” project, subsequently, renamed as the “North Edinburg to Palmito 345 kV double-circuit transmission line” project, which is built on double-circuit capable structures and the Palmito substation located on
the eastern terminus of the Cross Valley Project. The Cross Valley Project is part of
a 100 mile transmission line, which is jointly developed and permitted by Sharyland and Electric Transmission Texas. 
 “Cross Valley Project Transfer” shall
mean the sale and Transfer of all of the Capital Stock of CV Project Entity, L.L.C., a Project Finance Subsidiary of the Company, to Cross Valley Partnership, L.P., a Person Controlled by one or more Hunt Family Members, for a purchase price at
least equal to the Cross Valley Project’s rate base cost at such
time. 
 “Debt Service” for any period, the aggregate
(without duplication) of (i) all amounts of interest on the Notes and in respect of other Indebtedness of the Company required to be paid during such period, plus (ii) all amounts of principal on the Notes and in respect of other
Indebtedness of the Company or required to be paid during such period, excluding any optional prepayments of principal during such period, plus (iii) all other premiums, fees, costs, charges, expenses and indemnities due and payable to the
Holders or the other Secured Parties and holders of other Indebtedness of the Company or and agents acting on their behalf during such period. 

“Debt Service Coverage Ratio” means, for each period of four consecutive fiscal quarters, the quotient of (i) Cash Flow
Available for Debt Service for such period to (ii) Debt Service for such period. If, during any period, the Company and/or any Subsidiary enters into a transaction or series of related transactions not prohibited by this Agreement (including by
waiver, consent or amendment given or made in accordance with Article XVII) pursuant to which the Company and/or any Subsidiary acquires or disposes of any assets with a fair market value greater than $1,000,000, the Debt Service Coverage Ratio
shall be calculated on a pro forma basis after giving effect to such transaction or series of related transactions as a whole (including any related incurrence, repayment or assumption of Indebtedness), and such transaction or series of related
transactions (including any related incurrence, repayment or assumption of Indebtedness) shall be deemed to have occurred as of the first day of the applicable period. 

“Deeds of Trust” means (i) the Amended and Restated First Lien Deed of Trust, Security Agreement and Fixture Filing
(Texas) and each First Lien Deed of Trust, Security Agreement, Assignment of Rents and Leases and Fixture Filing (Texas) by and from the Company, as grantor, to Peter M. Oxman, as trustee, for the benefit of the Collateral Agent and the other
Secured Parties, dated as of July 13, 2010, in each case as the same may be amended, restated, supplemented or otherwise modified from time to time and (ii) each other deed of trust by and from the Company, as grantor, for the benefit of
the Collateral Agent and the other Secured Parties entered into from time to time. 
 “Default” means an event or condition
the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default. 

  
 SCHEDULE
B-4 
 (To Annex A) 

 “Default Rate” means that rate of interest per annum from time to time
equal to the greater of (i) 8.47% per annum, and (ii) 2% over the rate of interest publicly announced by The Bank of New York Mellon from time to time in New York as its “base” or “prime” rate. 

“Deposit Agreement” means the Amended and Restated Deposit Account Control Agreement, dated as of the Third Amendment Date,
among the Company, the Collateral Agent and Bank of America, N.A. 
 “Designated Jurisdiction” means any country or
territory to the extent that such country or territory itself is the subject of any Sanction. 
 “Development Agreement” means
that certain Development Agreement to be entered into among Hunt Transmission Services,
L.L.C., Sharyland, InfraREIT and/or InfraREIT Partners in connection with one or more New Projects, pursuant to which Hunt Transmission Services, L.L.C. has granted InfraREIT a right of first offer related to the New Projects
identified therein, as amended from time to time in accordance with
its terms. 

“Disclosure Documents” is defined in Section 5.3. 

“Disposition Value” means, at any time, with respect to any property (a) in the case of property that does not
constitute Subsidiary Stock, the book value thereof, valued at the time of such disposition in good faith by the Company, and (b) in the case of property that constitutes Subsidiary Stock, an amount equal to (x) the book value of all
assets of the Subsidiary that issued such Subsidiary Stock multiplied by (y) the percentage of all of the outstanding Capital Stock of such Subsidiary represented by such Subsidiary Stock subject to an Asset Sale (assuming, in making such
calculations, that all Securities convertible into such Capital Stock are so converted and giving full effect to all transactions that would occur or be required in connection with such conversion), determined at the time of the disposition thereof,
in good faith by the Company. 
 “Distributions” means any dividend or other distribution (whether in cash, securities or
other property) with respect to any Capital Stock of any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance,
acquisition, cancellation or termination of any such Capital Stock or on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent Person thereof), or any option, warrant or other right to acquire
any such dividend or other distribution or payment. 
 “Environmental Laws” means any and all Federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including but not limited to those related to Hazardous Materials. 

“ERCOT” means the Electric Reliability Council of Texas or any successor thereto. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect. 

  
 SCHEDULE
B-5 
 (To Annex A) 

 “ERISA Affiliate” means any trade or business (whether or not incorporated)
that is treated as a single employer together with the Company under section 414 of the Code. 
 “Event of Default” is
defined in Section 11. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended from time to time. 
 “Fair Market Value” shall mean, at any time and with respect to any property, the sale value
of such property that would be realized in an arm’s-length sale at such time between an informed and willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell).

 “FERC” means the Federal Energy Regulatory Commission, or any successor agency to its duties and responsibilities. 

“FERC
Lease” shall mean (A) prior to the effectiveness of the FERC Lease Amendment and Restatement, the Second Amended and Restated Lease Agreement, dated as of July 1, 2012, between FERC Owner and FERC Operator and (B) upon the effectiveness of the FERC Lease
Amendment and Restatement, the FERC Lease Amendment and Restatement, as such lease may be amended, restated, supplemented or otherwise modified from time to time, or any new lease entered into in replacement thereof, in accordance with
Section 9.8(b)
and/or 10.12
of this Agreement, as applicable. 

“FERC Lease Amendment and Restatement” shall mean the Third Amended and Restated Lease Agreement (Stanton Transmission Loop Assets) between
FERC Owner, as lessor, and FERC Operator, as lessee. 
 “FERC Lease Assumptions” shall mean the anticipated assumptions of the FERC Lease in connection with the FERC Merger
(i) by the Company as the lessor thereunder, as successor in interest to FERC Owner and (ii) by Sharyland of the FERC Lease as the lessee, as successor in interest to the FERC
Operator. 

“FERC
Merger” shall mean the anticipated transaction or series of
transactions pursuant to which SDTS FERC L.L.C. will merge into the Company and SU FERC L.L.C. will merge into Sharyland. 

“FERC
Operator” shall mean (A) prior to the FERC Merger, SU FERC, L.L.C., a Subsidiary of Sharyland, and (B) upon the
completion of the FERC Merger, Sharyland. 
 “FERC Owner” shall mean
(A) prior to the FERC Merger, SDTS FERC, L.L.C., a Subsidiary of the Company, and
(B) upon the completion of the FERC Merger, the Company. 

“Fifth Amendment” shall mean that certain Fifth Amendment to Note Purchase Agreement, Direction and Waiver, dated as of
November 1, 2017, among the Company and the Holders party thereto. 
 “Fifth Amendment Effective Date” shall mean _________November 1, 2017. 
 “Financing Documents” means, collectively, this Agreement, the 2009
Note Agreement, the Notes, the 2029 Notes, the RBC Agreement, the Security Documents, any other documents, agreements or instruments entered into in connection with any of the foregoing and any other documents, agreements or instruments from time to
time constituting “Financing Agreements” under the Collateral Agency Agreement. 

  
 SCHEDULE
B-6 
 (To Annex A) 

 “Force Majeure Event” means any claim of force majeure by any Person under
any Material Project Document, which would allow such Person to avoid all or any material part of its obligations thereunder and any other fire, explosion, accident, strike, slowdown or stoppage, lockout or other labor dispute (whether pending or,
to the Company’s knowledge threatened), drought, storm, hail, earthquake, embargo, act of God or of the public enemy, or other casualty (whether or not covered by insurance), that could reasonably be expected to result in a Material Adverse
Effect. 
 “Fourth Amendment Date” means September 28, 2015. 

“FPA” means the Federal Power Act, 16 U.S.C. §§791 et seq., as amended, and the regulations of the FERC thereunder.

 “GAAP” means generally accepted accounting principles as in effect in the United States of America. In the event that
any “Accounting Change” (as defined below) shall occur and such change results in a change in the method of calculation of financial covenants, ratios, standards or terms in this Agreement, then the Company and the Holders agree to enter
into negotiations in order to amend such provisions of this Agreement so as to reflect equitably such Accounting Changes with the desired result that the criteria for evaluating the financial condition of the Company and Sharyland shall be the same after such Accounting Changes as if such Accounting Changes had not been made. Until such time as
such an amendment shall have been executed and delivered by the Company and the Holders, all financial covenants, ratios, standards and terms in this Agreement shall continue to be calculated or construed as if such Accounting Changes had not
occurred. “Accounting Changes” refers to changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of
Certified Public Accountants or, if applicable, the SEC. 

“Golden Spread Project” shall mean a new 345 kilovolt transmission line that will be approximately 55 miles long and will
connect the Golden Spread Electric Cooperative, Inc. Antelope-Elk Energy Center in Hale County, approximately 1.6 miles north of the City of Abernathy on County Road P, to the proposed White River Station that
will be built by Sharyland in Floyd County, approximately 9 miles northwest of the City of Floydada and 1.1 miles east of the intersection of County Road 231 and County Road 200 and the Abernathy substation that is located in the western portion of
the transmission line.

 “Golden Spread Project Transfer” shall mean the sale and Transfer of all of the Capital Stock of GS Project Entity to a Person
Controlled by one or more Hunt Family Members for a purchase price at least equal to the Golden Spread Project’s rate base cost at such time. 

“Good Utility Practices” means “Good Utility Practice” as defined from time to time by the Public Utility
Commission of Texas. 
 “Governmental Authority” means 

(a) the government of: 

(i) the United States of America or any State or other political subdivision thereof, or 

  
 SCHEDULE
B-7 
 (To Annex A) 

 (ii) any other jurisdiction in which the Company conducts all or any part of
its business, or which asserts jurisdiction over any properties of the Company, or 
 (b) any entity exercising executive, legislative,
judicial, regulatory or administrative functions of, or pertaining to, any such government, or 
 (c) ERCOT, or 

(d) the Texas Regional Entity. 

“GS Project
Entity” means a Project Finance Subsidiary of the Company created to finance and develop the Golden Spread Project. 

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of
negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any Indebtedness of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through
an agreement, contingent or otherwise, by such Person: 
 to purchase such Indebtedness or any property constituting security therefor; 

(a) to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working
capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such Indebtedness; 

(b) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such Indebtedness of the
ability of any other Person to make payment of the Indebtedness; or 
 (c) otherwise to assure the owner of such Indebtedness against loss
in respect thereof. 
 The amount of any Guaranty shall be deemed to be an amount equal to the stated or determinable amount of the related primary
obligation (or, if less, the maximum amount for which such Guaranty is made) or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. In any
computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor. 

“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to
health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of
which is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or
similar restricted, prohibited or penalized substances. 

  
 SCHEDULE
B-8 
 (To Annex A) 

 “Holder” means, with respect to any Note the Person in whose name such Note
is registered in the register maintained by the Company pursuant to Section 13.1. 
 “Hunt Family Members” means
(i) Ray L. Hunt; (ii) the spouse of Ray L. Hunt and each of his children
and siblings; (iii) the spouse and lineal descendants of any Person identified in the foregoing clause (ii); (iv) any trust or account primarily for the benefit of
any Person or Persons identified in the foregoing clauses (i), (ii) or (iii); (v) any corporation, partnership or other entity in which any of the Persons identified
in the foregoing clauses (i), (ii), (iii) or (iv) are the beneficial owners of substantially all of the shares of capital stock, membership interests, partnership
interests or other equity interests and options or warrants to acquire, or securities convertible into, capital stock, membership interests, partnership interests, or other equity securities of an entity; and (vi) the personal representative or guardian of any of the Persons identified in the foregoing clauses (i), (ii) and (iii) upon such
Person’s death for purposes of the administration of such Person’s estate or upon such
Person’s disability or incompetency for purposes of protection and management of
the assets of such Person. 
 “Indebtedness” with respect
to any Person means, at any time, without duplication, its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock; 

(a) its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary
course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 

(b) (i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and (ii) all liabilities
which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases;
provided, however, that for purposes
of this definition (including with respect to clauses (i) and (ii) hereof), the System Leases, any other Lease and any similar lease shall not be treated as a
capital lease;

 (c) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or
not it has assumed or otherwise become liable for such liabilities); 
 (d) all its liabilities in respect of letters of credit or
instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money);
provided,
 however,
 that for purposes of this definition, any surety bonds or indemnification agreements entered into by Sharyland (with respect to which the Company or a subsidiary thereof has a reimbursement or backstop obligation) in connection with condemnation
proceedings shall be
excluded; 

(e) the aggregate Swap Termination Value of all Swap Contracts of such Person; and 

(f) any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (f) hereof.

  
 SCHEDULE
B-9 
 (To Annex A) 

 
Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) through (g) to the extent such Person remains legally liable in respect
thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. 
 “Indebtedness Prepayment
Application” means, with respect to any Transfer of property constituting an Asset Sale, the payment by the Company or any Subsidiary of cash in an amount equal to the Net Proceeds Amount (or portion thereof) with respect to such Asset Sale
applied to repay or retire Permitted Secured Indebtedness; provided, that with respect to any such revolving Permitted Secured Indebtedness, the amount of the Indebtedness Prepayment Application with respect thereto shall be deemed to be equal to
the amount of any such repayment or retirement to the extent that there has been a commitment reduction in respect thereof; provided further that in the course of making the initial payment (or initial offer in respect of such payment) the Company
shall offer to prepay each outstanding Note in accordance with Section 8.7 in a principal amount which is at least equal to the Ratable Portion for such Note. “Ratable Portion” for any Note means an amount equal to the product of
(x) the Net Proceeds Amount (or portion thereof) being so applied to the payment of Permitted Secured Indebtedness multiplied by (y) a fraction the numerator of which is the outstanding principal amount of such Note and the denominator of
which is the aggregate principal amount of Permitted Secured Indebtedness of the Company and its Subsidiaries outstanding at such time; provided that the outstanding principal amount of any revolving Permitted Secured Indebtedness will not be
included in such denominator except to the extent an Indebtedness Prepayment Application is being made with respect thereto in accordance with the preceding sentence. 

“InfraREIT”
shall mean InfraREIT, L.L.C., a Delaware limited liability company, and its
successors. 
 “InfraREIT Partners” shall mean InfraREIT
Partners, LP, a Delaware limited partnership. 
 “Initial NPA” is defined in the recitals hereto. 

“Institutional Investor” means (a) any Purchaser of a Note, (b) any Holder of a Note holding (together with one or
more of its Affiliates) more than 5% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any
insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any Holder of any Note. 

“Investments” has the meaning given to it in Section 10.7. 

“Investment Grade Credit Rating” means with respect
to any Person, a rating of the long-term unsecured debt securities of such Person
(or if such rating is unavailable, issuer rating) equal to or higher than (1)
“BBB-” (or the equivalent) with a stable or better outlook by Standard & Poor’s
Financial Services LLC, or (2) “Baa3” (or the equivalent) with a stable or better outlook by Moody’s Corporation; provided, that if such Person has a rating from both Standard & Poor’s
Financing Services LLC and Moody’s Corporation, then the applicable rating shall
be deemed to be the lower of the two. 

  
 SCHEDULE
B-10 
 (To Annex A) 

“Leased Consolidated Net Plant” shall mean that portion of the Consolidated Net Plant of the lessor of a Lease between such lessor and
a Qualified Lessee that is the subject of such Lease. 
 “Leases”
 means (i) the System Leases, the CREZ Lease, the FERC Lease and any other leases of transmission and distribution and related assets to a Qualified Lessee under which the Company or any
Subsidiary of the Company is a party as a lessor and (ii) any lease of transmission and distribution and related assets pursuant to which Sharyland is the lessee
and a Subsidiary of Sharyland or another Person Controlled by one or more Hunt Family Members is the lessor; provided, no such lease will qualify as a
“Lease”
 hereunder if each of the three following criteria apply; (x) Sharyland is the
lessee, (y) cash rental payments have become due and payable pursuant thereto and
(z) none of the Company, a Subsidiary of the Company or a Subsidiary of Sharyland is the lessor.

 “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other
encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such
Person, in each case, in the nature of a security interest of any kind or nature whatsoever. 
 “Material Adverse Effect”
means a material adverse effect upon and/or material adverse developments with respect to (a) the operations, business, assets, properties, liabilities or financial condition of the Company and its Subsidiaries (taken as a whole); (b) the
ability of the Note Parties (taken as a whole) to perform their obligations under the Note Documents; (c) the legality, validity or enforceability of this Agreement or any other Note Document or the rights or remedies of the Collateral Agent or
the Holders hereunder or thereunder or (d) the validity, perfection or priority of the Collateral Agent’s Liens on any material Collateral. 

“Material Project Document” means (i) any contract or agreement that is related to the ownership, operation,
maintenance, management service, repair or use of the System entered into by the Company or any Subsidiary subsequent to the Third Amendment Date that involves full payments or obligations of the Company or any Subsidiary in excess of $5,000,000 in
any calendar year, and (ii) System Leases, but shall exclude any documents subject to Section 10.12 herein. 

“Maturity Date” means September 30, 2030. 

“Member
” means a
member
of the
Company. 

“McAllen
Lease” shall mean (A) prior to the effectiveness of the McAllen Lease Amendment and Restatement, the Second
Amended and Restated Master System Lease Agreement, dated as of July 1, 2012, between Company, as lessor, and Sharyland, as lessee, and (B) upon the effectiveness of the McAllen Lease Amendment and Restatement, the McAllen Lease Amendment and Restatement, as such lease may be amended, restated, supplemented or otherwise modified from time to time, or any
new lease entered into in replacement thereof, in accordance with Section 9.7(b) and/or 10.12 of this Agreement, as applicable. 

“McAllen Lease Amendment and Restatement” shall mean the Third Amended and Restated Master System Lease Agreement (McAllen System), between the
Company, as lessor, and Sharyland, as lessee. 

“Moody’s” means Moody’s Investors Service, Inc. 

  
 SCHEDULE
B-11 
 (To Annex A) 

 “Multiemployer Plan” means any Plan that is a “multiemployer
plan” (as such term is defined in section 4001(a)(3) of ERISA). 
 “NAIC” means the National Association of Insurance
Commissioners or any successor thereto. 
 “Net Proceeds Amount” means, with respect to any Transfer of any assets by any
Person, an amount equal to the difference of (a) the aggregate amount of the consideration (if not cash, valued at the Fair Market Value of such consideration at the time of the consummation of such Transfer) allocated to such Person in respect
of such Transfer, net of any applicable taxes incurred in connection with such Transfer, minus (b) all ordinary and reasonable out-of-pocket costs and expenses
actually incurred by such Person in connection with such Transfer. 
 “New Project” shall mean any transmission or
distribution project, including any such project acquired or built by a Project Finance Subsidiary, any
“Footprint Project” (as defined in the Leases) that the Company or a Subsidiary of the Company funds pursuant to a Lease
and any such project that InfraREIT or a Subsidiary thereof acquires pursuant to the Development Agreement, including, for the avoidance of doubt, the Cross Valley Project and the Golden Spread
Project.. 

“Non-Recourse Debt” means Indebtedness of a Project Finance Subsidiary or a Subsidiary of
Sharyland, as the case may be, that, if secured, is secured solely by a pledge of collateral owned by such
Project Finance Subsidiary or such Subsidiary of Sharyland, as the case may be, and the Capital Stock in such Project
Finance Subsidiary or such Subsidiary of Sharyland, as the case may be, and for which no Person other than such
Project Finance Subsidiary or such Subsidiary of Sharyland, as the case may be, is personally liable. 

“Notes” is defined in Section 1. 

“Note Documents” means this Agreement, the Notes, the Security Documents, the Subsidiary Guaranties and any amendment,
waiver, supplement or other modification to any of the foregoing. 
 “Note Parties” means the Company and each Subsidiary
that is a party to a Note Document, as applicable. 

“O&M
Costs” means actual cash management and operation costs of the
Company, taxes payable by the Company, insurance premiums, consumables, fees and
expenses of, and other amounts owing to, the Collateral Agent and the depositary
under the Deposit Agreement, and other costs and expenses in connection with the management or operation of the Company, but exclusive in all cases of (a) non-cash charges,
including depreciation or obsolescence charges or reserves therefor, amortization of intangibles or other bookkeeping entries of a similar nature,  
 (b) all
other payments of Debt Service and Yield-Maintenance Amounts, if any, (c) costs of repair or replacement paid with insurance proceeds and (d) development costs related to any Project Finance Subsidiary. 

  
 SCHEDULE
B-12 
 (To Annex A) 

 “Obligation” means any loan, advance, debt, liability, and obligation of
performance, howsoever arising, owed by the Company to the Collateral Agent or the Holders of any kind or description (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, pursuant to the terms of this Agreement, any Note or any of the other Note Documents, including all principal, interest, Yield-Maintenance Amounts, fees, charges, expenses,
attorneys’ fees and accountants fees payable or reimbursable by the Company under this Agreement or any of the other Note Documents. 

“OFAC” means the Office of Foreign Assets Control, United States Department of the Treasury. 

“OFAC Listed Person” means a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons
published by OFAC. 
 “OFAC Sanctions Program” shall mean any economic or trade sanction that OFAC is responsible for
administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx. 

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose
responsibilities extend to the subject matter of such certificate. 

“Oncor”
means Oncor Electric Delivery Company LLC, a Delaware limited liability company, and its successors. 

“Operating Cash
Flow” means, with respect to any Person, for any period, the operating cash flow of such Person,
as determined in accordance with GAAP, as set forth on the most recently delivered statement of cash flows of such Person
(which,
 for the avoidance of doubt, shall be calculated net of interest expense of such Person for such period). 
 “Payment Date” means September 30, 2010 and the 30th day of December,
March, June and September thereafter up to the Maturity Date, and the Maturity Date. 
 “PBGC” means the Pension Benefit
Guaranty Corporation referred to and defined in ERISA or any successor thereto. 
 “Permit” means any action, approval,
consent, waiver, exemption, variance, franchise, order, permit, authorization, right or license of or from a Governmental Authority, provided that interests or estates in real property, shall not be considered Permits. 

  
 SCHEDULE
B-13 
 (To Annex A) 

“Permitted
 Affiliate Loan” means,
without duplication, loans made by Oncor or any of its Subsidiaries to the Company or a Subsidiary thereof
from time to time on an unsecured
basis; provided that
(a) such loans are subordinated to the Obligations (and under the 2009 Note Agreement and the TDC Note
Agreement) pursuant to the Subordination Terms
and (b) after giving effect to any
such loan, the Company shall
be in pro forma compliance with the financial covenants contained in Section 9.9 of this
Agreement. 

“Permitted Investment” means any (a) marketable direct obligation of the United States of America, (b) marketable
obligation directly and fully guaranteed as to interest and principal by the United States of America, (c) demand deposit with Bank of America N.A., or time deposit, certificate of deposit and banker’s acceptance issued by any member bank
of the Federal Reserve System which is organized under the laws of the United States of America or any state thereof or any United States branch of a foreign bank, in each case whose equity capital is in excess of $500,000,000 and whose long-term
debt securities are rated “A” or better by S&P and “A2” or better by Moody’s, (d) commercial paper or tax exempt obligations given the highest rating by Moody’s and S&P, (e) obligations of a commercial
bank described in clause (c) above, in respect of the repurchase of obligations of the type as described in clauses (a) and (b) hereof, provided that such repurchase obligation shall be fully secured by obligations of the type described in
said clauses (a) and (b) and the possession of such obligation shall be transferred to, and segregated from other obligations owned by, any such bank, (f) instrument rated “AAA” by S&P and “Aaa” by Moody’s
issued by investment companies and having an original maturity of 180 days or less, (g) eurodollar certificates of deposit issued by any bank described in clause (c) above, and (h) marketable security rated not less than “A-1” by S&P or not less than “Prime-1” by Moody’s. In no event shall Permitted Investments include any obligation, certificate of deposit,
acceptance, commercial paper or instrument which by its terms matures (A) more than 180 days after the date of investment, unless a bank meeting the requirements of clause (c) above shall have agreed to repurchase such obligation,
certificate of deposit, acceptance, commercial paper or instrument at its purchase price plus earned interest within no more than 90 days after its purchase thereunder or (B) after the next Payment Date. 

“Permitted Lien” is defined in Section 10.5. 

“Permitted Secured Indebtedness” has the meaning given to it in the Collateral Agency Agreement. 

“Person” means an individual, partnership, corporation, cooperative corporation, limited liability company, association,
trust, unincorporated organization, business entity or Governmental Authority. 
 “Plan” means an “employee benefit
plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or
required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability. 

“Pledge Agreement” means the Amended and Restated Assignment of Membership Interests and Pledge Agreement, dated as of the
Third Amendment Date, by TDC, with respect to its membership interests in the Company, to the Collateral Agent. 

  
 SCHEDULE B-14 

(To Annex A)

 “Preferred Stock” means any class of capital stock of a Person that is
preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person. 

  
 SCHEDULE B-15 

(To Annex A)

 “Project Finance Subsidiary” means a special purpose Subsidiary of a Person
created to develop a New Project and to finance such New Project solely with Non-Recourse Debt and equity (including, for the avoidance of
doubt, CV Project Entity, L.L.C.which shall exclude any Subsidiary that has become a Subsidiary of the
Company
in accordance with
Section 9.7(b)). 

“property” or “properties” means, unless otherwise specifically limited, real or personal property of any
kind, tangible or intangible, choate or inchoate. 
 “Property Reinvestment Application” means, with respect to any
Transfer of assets constituting an Asset Sale, the application of all or any portion of the Net Proceeds Amount with respect to such Transfer to the acquisition by the Company or any of its Subsidiaries of assets to be used in the principal business
of the Company or any of its Subsidiaries. For avoidance of doubt, to the extent consideration received by the Company or any of its Subsidiaries in an Asset Sale is not cash but constitutes assets to be used in the principal business of the BorrowerCompany or any of its Subsidiaries, the Net Proceeds Amount in respect of such consideration received shall be considered a Property Reinvestment Application. 

“PTE” is defined in Section 6.2(a). 

“Purchaser” is defined in the first paragraph of this Agreement. 

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning of
such term as set forth in Rule 144A(a)(1) under the Securities Act. 

“Qualified
Lessee” means Sharyland and/or any other utility that is (x) approved or authorized by the applicable public
utility commission or similar regulatory authority to operate and/or lease the transmission and/or distribution assets of the Company or any Subsidiary and (y) a party to a then-effective lease agreement with the Company or a Subsidiary thereof pursuant to
which such utility leases and operates such entity’s transmission and/or distribution
assets. 

“Qualified Lessee Affiliate Loan” means loans made
by InfaREIT Partners or a Subsidiary thereof to Qualified Lessees from time to time in an aggregate principal amount not to exceed $10,000,000 at any time outstanding
as long as the use of proceeds of such loans is limited to the acquisition or financing of equipment or other assets used in the Qualified Lessee’s operation or lease of transmission or distribution assets from the Company or a Subsidiary thereof pursuant to
a Lease. 

“Qualifying
IPO” means an initial public offering of the Capital Stock of InfraREIT pursuant to a registration statement filed with the SEC.

 “RBC” means Royal Bank of Canada, a Canadian banking institution. 

“RBC Agreement” means that certain Third Amended and Restated Credit Agreement, dated as of the Third Amendment Date, among
the Company, as borrower, the lenders from time to time party thereto and RBC, administrative agent, as the same may be amended, restated, supplemented and otherwise modified from time to time. 

“Real Property Collateral” means any fee owned real property (other than easements and rights of way) with a fair market
value in excess of $3,000,000. 

  
 SCHEDULE
B-16 
 (To Annex A) 

 “Related Fund” means, with respect to any Holder of any Note, any fund or
entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such Holder, the same investment advisor as such Holder or by an Affiliate of such Holder or such investment advisor. 

“Required Holders” means, at any time, the Holders of at least 51% in principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Company or any of its Affiliates). 
 “Required Permit” is defined in
Section 5.12(a). 
 “Requirements of Law” means as to any Person, the certificate of
incorporation or formation and by-laws or partnership or operating agreement or other organizational or governing documents of such Person, and any local, state or Federal law, regulation, rule, ordinances or
determination, interpretation or order of an arbitrator or a court or other Governmental Authority, and any Required Permit, in each case applicable to or binding upon such Person or any of its properties or its business or to which such Person or
any of its properties or its business is subject. 
 “Responsible Officer” means any Senior Financial Officer and any other
officer of the Company with responsibility for the administration of the relevant portion of this Agreement. 
 “Restricted Payment
Conditions” is defined in Section 10.9. 

“ROFO
Transfer” shall mean the sale and Transfer to Persons Controlled by one or more Hunt Family Members of any assets located in the Texas Panhandle related to the CREZ Project that are categorized as
ROFO Projects under the Development Agreement with an aggregate fair market value not to exceed $5,000,000. 

“Sanctions” means any international economic sanction administered or enforced by the United States Government (including
without limitation, OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority. 

“SEC” shall mean the Securities and Exchange Commission of the United States, or any successor thereto. 

“Secured Parties” means the Collateral Agent, the Holders and the other Secured Parties (as defined in the Collateral Agency
Agreement) from time to time. 
 “Securities” or “Security” shall have the meaning specified in
Section 2(1) of the Securities Act. 
 “Securities Act” means the Securities Act of 1933, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect. 
 “Security Agreement” means the
Amended and Restated Security Agreement, dated as of the Fourth Amendment Date, among the Company and the Collateral Agent. 

“Security Documents” means (i) the Collateral Agency Agreement, Security Agreement, the Deeds of Trust, the Pledge
Agreement and the Deposit Agreement Agreement and (ii) other security documents entered into pursuant to Section 9.7 and any other security documents, financing statements and the like filed or recorded in connection
with the foregoing. 

  
 SCHEDULE
B-17 
 (To Annex A) 

 “Senior Financial Officer” means the chief financial officer, principal
accounting officer, treasurer or comptroller of the Company or a Qualified Lessee, as applicable. 
 “Sharyland” means
Sharyland Utilities, L.P., a Texas limited partnership. 

“SP” shall
mean Sharyland Projects, L.L.C., a Project Finance Subsidiary. 
 “Specified Qualified Lessee” shall
mean Sharyland and any Qualified Lessee (a) (i) without an Investment Grade Credit Rating or (ii) whose obligations under the applicable Leases are not guaranteed by an entity with an Investment Grade Rating
and (b) whose business is limited to the leasing of transmission and/or
distribution assets from the Company or any of its Subsidiaries or Affiliates. 

“Stanton/Brady/Celeste Lease” shall mean
(A) prior to the effectiveness of the Stanton/Brady/Celeste Lease Amendment and Restatement, the Amended and Restated Lease Agreement (Stanton/Brady/Celeste
Assets), dated as of July 1, 2012, between the Company, as lessor, and Sharyland, as lessee, and (B) upon the effectiveness of the Stanton/Brady/Celeste Lease Amendment and Restatement, the Stanton/Brady/Celeste Lease Amendment and Restatement, as such lease may be amended restated,
supplemented or otherwise modified from time to time, or any new lease entered into in replacement thereof, in accordance with
Section 9.7(b)
and/or 10.12
of this Agreement, as applicable. 

“Stanton/Brady/Celeste Lease Amendment and Restatement” shall mean the Second Amended and Restated Lease Agreement (Stanton/Brady/Celeste Assets), between the
Company, as lessor, and Sharyland, as lessee. 
 “Structuring Fee” is defined in Section 4.7. 

“Subordination Terms
” means the
terms set forth in Exhibit 2 to the Agreement. 

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such
first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions)
of such second Person and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries
(unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Company and, prior to the
completion of the FERC Merger, shall include the FERC Owner. Prior to the completion of the FERC Merger, all references herein to a Subsidiary of Sharyland shall include the FERC Operator. 

“Subsidiary Guaranty” means each Guaranty provided by the Subsidiary Guarantors pursuant to
Section 9.7(d), if any, substantially in the form of Exhibit 3 to the Agreement. 
 “Subsidiary
Guarantor” means any Subsidiary of the Company that is a guarantor under a Guaranty pursuant to Section 9.7(d). 

  
 SCHEDULE
B-18 
 (To Annex A) 

 “Subsidiary Stock” means, with respect to any Person, the Capital Stock of
any Subsidiary of such Person. 
 “SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.

 “Swap Contract” means (a) any and all interest rate swap transactions, basis swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward foreign exchange transactions,
cap transactions, floor transactions, currency options, spot contracts or any other similar transactions or any of the foregoing (including, but without limitation, any options to enter into any of the foregoing), and (b) any and all
transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., or any International
Foreign Exchange Master Agreement. 
 “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance
therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to- market values(s)
for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts. 

“Synthetic Lease” means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any
property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal income tax purposes, other than any such lease under which
such Person is the lessor. 
 “System” means the Company’s and/or any Subsidiary’s (other than a Project Finance
Subsidiary’s) integrated electrical transmission and distribution facilities located primarily in the State of Texas (which, as of
the effective date of the Sixth Amendment to this Agreement, consists of approximately 675 line miles (or approximately 1,225 circuit miles) of 345
kV transmission lines,
approximately 350 line/circuit miles of 138 kV transmission lines, and approximately 50 transmission stations which are
located in 33 counties of Texas, primarily in the Panhandle and West Texas regions) and the systems and other property
necessary to operate the transmission and distribution facilities, and all improvements to and expansions of such facilities, and each New Project (upon its completion) owned by the Company or a Subsidiary thereof; provided that, for the
purposes hereof, “System” shall not be deemed to include any easements held by the Company or any Subsidiary. 
 “System Leases” means (1) the
McAllen Lease, (2) the Stanton/Brady/Celeste Lease, (3) upon the
effectiveness thereof, the Lease Agreement (ERCOT Transmission Assets) between the Company, as lessor, and Sharyland, as lessee, (4) upon the completion of the
FERC Merger, the FERC Lease and (5) any and all other Leases and supplements thereto in connection with the System and the transmission and distribution
facilities ancillary thereto and any easements associated therewith, in the case of each of the foregoing clauses (1) through (5) as amended, restated, supplemented or otherwise modified from time to time, or any new lease entered into in replacement thereof, in accordance with Section 9.8 and/or 10.16 of this Agreement, as applicable. 

  
 SCHEDULE
B-19 
 (To Annex A) 

 “Taxes” shall mean all present or future taxes, levies, imposts, duties,
deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“TDC” means Transmission and Distribution Company, L.L.C., a Texas limited liability company. 

“TDC Note Agreement” means the Note Purchase Agreement, dated the Closing Date, among TDC and the purchasers named therein.

 “Third Amendment Date” means December 10, 2014. 

“Total Debt” means, with respect to the Company, all Indebtedness of the Company on a consolidated basis; provided,
however, that for purposes of calculating the Company’s Total Debt to Capitalization Ratio, the Company’s Total Debt shall exclude
(a) Non-Recourse Debt of a Project
Finance Subsidiary of the Company and,
(b) that portion of the Swap Termination Value defined in clause (b) of the definition of “Swap Termination Value” and shall include Indebtedness of Sharyland on a consolidated basis (excluding Non-Recourse Debt of a Project Finance Subsidiary
of
Sharyland)(c) any Permitted Affiliate
Loan. 
 “Total Debt to Capitalization Ratio” means
(a) the Company’s Total Debt, divided by (b) the sum of (i) Total Debt plus (ii) the Company’s capitalization, as shown on the Company’s balance sheet
plus (iii) if positive, Sharyland’s capitalization, as shown on its balance sheet. In connection with any transaction or series of related transactions not
prohibited by this Agreement (including by waiver, consent or amendment given or made in accordance with Article XVII) pursuant to which the Company or any Subsidiary makes any acquisition or disposition of assets with a fair market value greater
than $1,000,000, the Total Debt to Capitalization Ratio shall be calculated on a pro forma basis after giving effect to such transaction or series of related transactions as a whole (including any related incurrence, repayment or assumption of
Indebtedness). 
 “Transaction Documents” means, collectively, the Note Documents and the Leases to which the Company or a Subsidiary thereof is a party. 

“Transfer” means, with respect to any item, the sale, exchange, conveyance, lease, transfer or other disposition of such
item. 
 “UCC” shall mean, with respect to any jurisdiction, the Uniform Commercial Code as in effect in such jurisdiction.

 “UCC Collateral” means the Collateral that is of a type in which a valid security interest can be created under Article
8 or Article 9 of the UCC as in effect in New York. 

  
 SCHEDULE
B-20 
 (To Annex A) 

 “U.S. Economic Sanctions” shall mean United States economic sanctions,
including but not limited to, the Trading with the Enemy Act, the International Emergency Economic Powers Act, CISADA or any similar law or regulation with respect to Iran or any other country, the Sudan Accountability and Divestment Act, any OFAC
Sanctions Program, or any economic sanctions regulations administered and enforced by the United States or any enabling legislation or executive order relating to any of the foregoing. 

“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 

“Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent of all of the voting interests of which are
owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time. 
 “Yield-Maintenance
Amount” is defined in Section 8.6. 

  
 SCHEDULE
B-21 
 (To Annex A) 

 RULES OF INTERPRETATION 

 

	1.	 The singular includes the plural and the plural includes the singular; and words in the masculine, neuter or
feminine gender shall be read and construed as though in either of the other genders where the context so requires. 

  

	2.	 The word “or” is not exclusive. 

 

	3.	 A reference to any law includes any amendment or modification to such law, and all regulations, rulings and
other laws and regulations promulgated under such law. 

  

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

 

	5.	 Accounting terms have the meanings assigned to them by GAAP (as defined in the applicable Financing Agreement),
as applied by the accounting entity to which they refer. 

  

	6.	 The words “include,” “includes” and “including” are not limiting.

  

	7.	 A reference in a document to an Article, Section, Exhibit, Schedule, Annex or Appendix is to the Article,
Section, Exhibit, Schedule, Annex or Appendix of such document unless otherwise indicated. Exhibits, Schedules, Annexes or Appendices to any document shall be deemed incorporated by reference in such document. 

 

	8.	 References to “knowledge” or words of similar import refer to the actual knowledge of the current
officers of the relevant Person, without any duty of investigation unless otherwise indicated. 

  

	9.	 References to any document, instrument or agreement (a) shall include all exhibits, schedules and other
attachments thereto, (b) shall include all documents, instruments or agreements issued or executed in replacement thereof, and (c) shall mean such document, instrument or agreement, or replacement or predecessor thereto, as amended,
modified and supplemented from time to time and in effect at any given time. 

  

	10.	 The words “hereof,” “herein” and “hereunder” and words of similar import when
used in any document shall refer to such document as a whole and not to any particular provision of such document. 

  

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

  

	12.	 The section and subsection headings in a document are for convenience of reference only and shall neither be
deemed to be a part of such document nor modify, define, expand or limit any of the terms or provisions thereof. 

  

	13.	 References to agreements or other contractual obligations shall, unless otherwise specified, be deemed to refer
to such agreements or contractual obligations as amended, supplemented, restated or otherwise modified from time to time. 

  
 SCHEDULE
B-22 
 (To Annex A)

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