Document:

EX-10.8

 Exhibit 10.8 

FIRST AMENDMENT 
 to

 Lease Agreement (ERCOT Transmission Assets) 

and 
 Seventh Amended and
Restated Rent Supplement 
 November 9, 2017 

This First Amendment (this “First Amendment”) to the Lease Agreement (ERCOT Transmission Assets) and the Seventh Amended and
Restated Rent Supplement between Sharyland Distribution & Transmission Services, L.L.C. (“Lessor”) and Sharyland Utilities, L.P. (“Lessee”) is effective as of November 9, 2017. Capitalized terms used
herein that are not otherwise defined will have the meanings assigned to such terms in the ERCOT Transmission Lease (as defined below). 

WHEREAS, Lessor and Lessee are Parties to a Lease Agreement (ERCOT Transmission Assets) dated as of December 1, 2014 (as amended from
time to time in accordance with its terms, the “ERCOT Transmission Lease”); 
 WHEREAS, on February 22, 2017, the
Parties executed the Seventh Amended and Restated Rent Supplement (ERCOT Transmission Lease) effective as of January 1, 2017 (the “Seventh Amended Supplement”); and 

WHEREAS, the Parties now desire to amend the ERCOT Transmission Lease and the Seventh Amended Supplement as set forth herein. 

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt of which is hereby acknowledged,
the Parties hereby agree as follows: 
 1. Amendment of ERCOT Transmission Lease. 

 

	 	a.	Section 4.13 of the ERCOT Transmission Lease is hereby amended and restated in its entirety as follows: 

4.13 Financing. 

(a) Lessee acknowledges that Lessor has advised Lessee that Lessor has obtained financing secured by, among other things, the ERCOT
Transmission Assets and this Agreement. In connection with such financing, Lessor made certain representations, warranties and covenants set forth in that certain (i) Amended and Restated Note Purchase Agreement entered into by Lessor and dated
as of September 14, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “2009 Note Purchase Agreement”), a copy of which has been provided to and reviewed by Lessee; (ii) Amended and
Restated Note Purchase Agreement entered into by Lessor and dated as of July 13, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “2010 Note Purchase Agreement”), a copy of which has been
provided to and reviewed by Lessee; (iii) Note Purchase Agreement entered into by Lessor and dated as of December 3, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “2015 Note Purchase
Agreement”), a copy of which has been provided to and reviewed by Lessee; (iv) Third Amended and Restated Credit Agreement entered into by Lessor and dated as of December 10, 2014 (as amended, restated, amended and restated,
supplemented or otherwise 

  

					
		  		  	ERCOT TRANSMISSION LEASE

 
modified from time to time, the “2014 Credit Agreement”), a copy of which has been provided to and reviewed by Lessee; (v) Amended and Restated Credit Agreement entered into
by Lessor and dated as of December 3, 2015 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “2015 Credit Agreement”), a copy of which has been provided to and reviewed by
Lessee; and (vi) Term Loan Credit Agreement entered into by Lessor and dated as of June 5, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”),
a copy of which has been provided to and reviewed by Lessee. 
 (b) Lessee agrees with Lessor that, to the extent not otherwise covered by
the terms of this Agreement, Lessee hereby makes on a continuous and ongoing basis the same representations and warranties to Lessor as Lessor makes to the Lender (as defined in the 2014 Credit Agreement) in Sections 6.3 (Disclosure), 6.5
(Financial Condition; Financial Instruments), 6.6 (Compliance with Laws, Other Instruments, Etc.), 6.7 (Governmental Authorizations, Etc.), 6.8 (Litigation; Observance of Agreements, Statutes and Orders), 6.9
(Taxes), 6.10 (Title to Property; Leases), 6.11 (Insurance), 6.12 (Licenses, Permits, Etc.; Material Project Documentation), 6.16 (Foreign Assets and Control Regulations, Etc.), 6.17 (Status under Certain
Statutes), 6.18 (Environmental Matters), 6.19 (Force Majeure Events; Employees) and 6.20 (Collateral) of the 2014 Credit Agreement (or equivalent provisions), to the extent that such representations and warranties relate to
(i) Lessee, whether in its capacity as Lessee or otherwise, including, without limitation, Lessee’s status or operations as a public utility, or (ii) Lessee’s ownership of the ERCOT Transmission Assets on or before the date
hereof. 
 (c) Lessee agrees with Lessor that, to the extent not otherwise covered by the terms of this Agreement, Lessee hereby makes on a
continuous and ongoing basis the same representations and warranties to Lessor as Lessor makes to the Lender (as defined in the Term Loan Agreement) in Sections 6.3 (Disclosure), 6.5 (Financial Condition; Financial Instruments), 6.6
(Compliance with Laws, Other Instruments, Etc.), 6.7 (Governmental Authorizations, Etc.), 6.8 (Litigation; Observance of Agreements, Statutes and Orders), 6.9 (Taxes), 6.10 (Title to Property; Leases), 6.11
(Insurance), 6.12 (Licenses, Permits, Etc.; Material Project Documentation), 6.16 (Foreign Assets and Control Regulations, Etc.), 6.17 (Status under Certain Statutes), 6.18 (Environmental Matters), 6.19 (Force
Majeure Events; Employees) and 6.20 (Collateral) of the Term Loan Agreement (or equivalent provisions), to the extent that such representations and warranties relate to (i) Lessee, whether in its capacity as Lessee or otherwise,
including, without limitation, Lessee’s status or operations as a public utility, or (ii) Lessee’s ownership of the ERCOT Transmission Assets on or before the date hereof. 

(d) Lessee covenants and agrees with Lessor that: 

(i) during the term of the 2009 Note Purchase Agreement, Lessee will comply with the covenants set forth in Sections 9.08
(Material Project Documents), 10.04 (Terrorism Sanctions Regulations), 10.10 (Sale of Assets, Etc.), 10.11 (Sale or Discount of Receivables), 10.12 (Amendments to Organizational Documents), 10.16 (Project
Documents) and 10.17 (Regulation) of the 2009 Note Purchase Agreement; 
 (ii) during the term of the 2010 Note
Purchase Agreement, Lessee will comply with the covenants set forth in Sections 9.8 (Material Project Documents), 10.4 (Terrorism Sanctions Regulations), 10.10 (Sale of Assets, Etc.), 10.11 (Sale or Discount of
Receivables), 10.12 (Amendments to Organizational Documents), 10.16 (Project Documents) and 10.17 (Regulation) of the 2010 Note Purchase Agreement; 

(iii) during the term of the 2015 Note Purchase Agreement, Lessee will comply with the covenants set forth in Sections 9.8
(Material Project Documents), 10.4 (Terrorism Sanctions Regulations), 10.6 (Sale of Assets, Etc.), 10.9 (Regulation), 10.10 (Amendments to Organizational Documents) and 10.11 (Project Documents) of the 2015
Note Purchase Agreement; 

  

					
		  		  	ERCOT TRANSMISSION LEASE

 (iv) during the term of the 2014 Credit Agreement, Lessee will comply with the
covenants set forth in Sections 7.10 (Material Project Documents), 8.4 (Terrorism Sanctions Regulations), 8.10 (Sale of Assets, Etc.), 8.11 (Sale or Discount of Receivables), 8.12 (Amendments to Organizational
Documents), 8.16 (Material Projects Documents) and 8.17 (Regulation) of the 2014 Credit Agreement (or equivalent provisions); 

(v) during the term of the 2015 Credit Agreement, Lessee will comply with the covenants set forth in Sections 6.10 (Material
Project Documents), 7.4 (Terrorism Sanctions Regulations), 7.10 (Sale of Assets, Etc.), 7.11 (Sale or Discount of Receivables), 7.12 (Amendments to Organizational Documents), 7.16 (Project Documents) and 7.17
(Regulation) of the 2015 Credit Agreement (or equivalent provisions); and 
 (vi) during the term of the Term Loan
Agreement, Lessee will comply with the covenants set forth in Sections 7.10 (Material Project Documents), 8.4 (Terrorism Sanctions Regulations), 8.10 (Sale of Assets, Etc.), 8.11 (Sale or Discount of Receivables), 8.12
(Amendments to Organizational Documents), 8.16 (Material Projects Documents) and 8.17 (Regulation) of the Term Loan Agreement (or equivalent provisions); 

in each case to the extent that such covenants relate to (x) Lessee, whether in its capacity as Lessee or otherwise, including, without limitation,
Lessee’s status or operations as a public utility, or (y) Lessee’s ownership of the ERCOT Transmission Assets on or before the date hereof. 

(e) Lessee may not lease, or agree or otherwise commit to lease, any transmission or distribution facilities other than pursuant to a Lease.
Further, Lessee shall not permit Persons other than Hunt Family Members to acquire any interest in Lessee, directly or indirectly, in a manner that would result in a Change of Control of Lessee. 

(f) The Parties agree to amend, alter or supplement this Section 4.13, Section 6.2 or Exhibit B hereto from time to time,
including through the delivery of a representation letter from Lessee or other form to which the Parties may agree, to give effect to the obligations under Lessor’s then-current Debt Agreements, including the credit arrangements of any
successor to Lessor’s interest in this Agreement. Provided that the obligations or restrictions on Lessee are not materially increased from those provided for by Lessor’s then-current credit arrangements, such an amendment to this
Agreement shall become automatically effective upon the delivery by Lessor to Lessee of a revised version of Section 4.13 and copies of the pertinent portions of the applicable Debt Agreements referenced therein. 

 

	 	b.	The definition of “Change in Control” in Appendix A of the ERCOT Transmission Lease is hereby deleted in its entirety and the following new definition is added, in the appropriate alphabetical order, to
Appendix A of the ERCOT Transmission Lease: 

 “Change of Control” means Hunt Family Members cease to possess,
directly or indirectly, the power to direct or cause the direction of the management or policies of Lessee, whether through the ability to exercise voting power, by contract or otherwise. 

 

	 	c.	The following definitions in Appendix A of the ERCOT Transmission Lease are hereby amended and restated in their entirety as follows: 

  

					
		  		  	ERCOT TRANSMISSION LEASE

 “2009 Note Purchase Agreement” has the meaning set forth in Section 4.13(a). 

“2010 Note Purchase Agreement” has the meaning set forth in Section 4.13(a). 

“Debt Agreements” means the 2009 Note Purchase Agreement, the 2010 Note Purchase Agreement, the 2015 Note Purchase Agreement, the
2014 Credit Agreement, the 2015 Credit Agreement, the Term Loan Agreement and any other financing arrangement or agreement pursuant to which Lessor incurs Indebtedness from time to time. 

“Footprint Projects” means T&D Projects that (i) are located in the ERCOT Service Territory, (ii) are added as part of
an existing transmission substation that comprises a part of the ERCOT Transmission Assets or hang from transmission towers that comprise a part of the ERCOT Transmission Assets or (iii) constitute Reclassified Projects; provided that
such T&D Projects are funded by expenditures that are or are expected to be capitalized under GAAP and are within the items described in Section 1.1(b)(i)-(v) (specifically excluding Section 1.1(b)(vi)). 

“Reclassified Projects” means any T&D Project that does not otherwise meet the definition of Footprint Project but Lessee and
Lessor jointly agree, in their sole discretion, to classify such T&D Project as a Footprint Project based upon such factors that the Parties deem relevant, including (i) the expected Rate Base of the T&D Project, it being understood
that the Parties generally expect that only T&D Projects with an expected Rate Base of less than $25 million could constitute a Reclassified Project; (ii) whether the T&D Project is physically connected to the ERCOT Transmission
Assets; and (iii) whether the T&D Project is necessary to serve distribution customers situated in the ERCOT Service Territory. 
  

	 	d.	The following new definitions are added, in the appropriate alphabetical order, to Appendix A of the ERCOT Transmission Lease to read as follows: 

“2014 Credit Agreement” has the meaning set forth in Section 4.13(a). 

“2015 Credit Agreement” has the meaning set forth in Section 4.13(a). 

“2015 Note Purchase Agreement” has the meaning set forth in Section 4.13(a). 

“ERCOT Service Territory” means (i) the distribution service territory, if any, of the ERCOT Transmission Assets, as in
existence at the time of determination hereunder and (ii) the distribution service territory, if any, of the ERCOT Transmission Assets, as in existence immediately prior to the consummation of the Exchange Transaction. 

“Exchange Transaction” means the transaction contemplated by the Agreement and Plan of Merger among Lessor, Lessee, Oncor and
certain other parties thereto, pursuant to which, on or around the date hereof, Lessor is disposing of certain transmission and distribution assets that are subject to the Stanton/Brady/Celeste Lease and McAllen Lease and, in exchange therefor, is
acquiring certain transmission assets and cash from Oncor. 
 “Oncor” means Oncor Electric Delivery Company LLC. 

“Term Loan Agreement” has the meaning set forth in Section 4.13(a). 

  

					
		  		  	ERCOT TRANSMISSION LEASE

 2. Amendment of Seventh Amended Supplement. The table in the Seventh Amended Supplement
titled “ERCOT Transmission Rate Allocation” is hereby amended by deleting the table in its entirety and replacing the same with the following: 
  

			
	ERCOT Transmission Rate	  	
	Allocation	  	before October 3, 2014: 0%
		  	 between October 3, 2014 and March 31, 2015: 2.1%

between April 1, 2015 and October 31, 2015: 2.1%

between November 1, 2015 and June 13, 2016: 3.6%

between June 13, 2016 and September 22, 2016: 4.1%

between September 23, 2016 and April 30, 2017: 3.6%

between May 1, 2017 and November 9, 2017: 3.6%
 between
November 10, 2017 and February 28, 2018: 2.8%
 starting March 1, 2018: 2.8%

 3. Continuing Effect. Except as expressly amended by this First Amendment, the provisions of each of the
ERCOT Transmission Lease and the Seventh Amended Supplement are and shall remain in full force and effect. 
 [Signatures on Following
Page] 

  

					
		  		  	ERCOT TRANSMISSION LEASE

 The Parties have executed this First Amendment as of the date set forth above. 

 

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

  

					
		  		  	ERCOT TRANSMISSION LEASEEX-10.9

 Exhibit 10.9 

Execution Version 

FIRST AMENDMENT 
 to

 Development Agreement 

November 9, 2017 

This First Amendment (this “First Amendment”) to the Development Agreement by and among Hunt Transmission Services, L.L.C.
(“Hunt”), Sharyland Utilities, L.P. (“Sharyland”), InfraREIT Partners, LP (the “Operating Partnership”), InfraREIT, Inc. (the “REIT” and, together with the Operating Partnership and
all direct and indirect subsidiaries of the REIT, “InfraREIT”) is effective as of November 9, 2017. Hunt, Sharyland, the Operating Partnership and the REIT are sometimes referred to in this First Amendment individually as a
“Party” or collectively as the “Parties.” Capitalized terms used herein that are not otherwise defined will have the meanings assigned to such terms in the Development Agreement (as defined below). 

WHEREAS, the Parties previously entered into that certain Development Agreement, dated as of January 29, 2015 (the “Development
Agreement”); 
 WHEREAS, on or around the date hereof, pursuant to an Agreement and Plan of Merger among Sharyland
Distribution & Transmission Services, L.L.C., a subsidiary of the REIT and the Operating Partnership (“SDTS”), Sharyland, Oncor Electric Delivery Company LLC (“Oncor”) and certain other parties thereto,
SDTS is disposing of certain transmission and distribution assets and, in exchange therefor, is acquiring certain transmission assets and cash from Oncor; and 

WHEREAS, in connection therewith, the Parties now desire to amend the Development Agreement as set forth herein. 

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt of which is hereby acknowledged,
the Parties hereby agree as follows: 
 1. Amendment of Development Agreement. 

 

	 	a.	The following definitions in Article I of the Development Agreement are hereby amended and restated in their entirety as follows: 

“Footprint Projects” means T&D Projects that (a) are located in the distribution service territory of an electric
distribution utility that is leasing T&D Assets from a REIT Entity that are being used in that distribution service territory, (b) constitute a Transmission Addition to the transmission assets owned by a REIT Entity, (c) connect or are
otherwise added to transmission lines or other property that comprise a part of the Acquired STL Assets or (d) are Reclassified Projects. For purposes of the definition of Footprint Projects, the distribution service territory in part
(a) of the definition and the transmission assets in part (b) of the definition will be deemed to include (i) the Legacy Service Territory and (ii) the distribution service territory and transmission assets of any T&D
Projects acquired by the REIT Entities after the date of this Agreement; provided, however, that to the extent that Hunt or an Affiliate thereof is actively developing a T&D Project in the distribution service territory of any T&D
Projects or Operating T&D Assets acquired by the REIT after the date of this Agreement at the time of such acquisition (including any ROFO Project), the T&D Project being actively developed by Hunt or such Affiliate will not be characterized
as a 

 
Footprint Project. For avoidance of doubt, if a REIT Entity acquires a ROFO Project or other T&D Assets, then any such acquisition will expand the definition of Footprint Project hereunder
such that, after the related T&D Project is acquired by a REIT Entity, Transmission Additions to any such T&D Assets will constitute Footprint Projects. 
  

	 	b.	The following new definitions are added, in the appropriate alphabetical order, to Article I of the Development Agreement to read as follows: 

“Acquired STL Assets” means the assets acquired by SDTS in the Exchange Transaction, together with Footprint Projects that
add to, expand or alter the Acquired STL Assets. 
 “Exchange Transaction” means the transaction contemplated by the
Agreement and Plan of Merger among SDTS, Sharyland, Oncor and certain other parties thereto, pursuant to which SDTS is disposing of certain transmission and distribution assets that are subject to lease by Sharyland and, in exchange therefor, is
acquiring certain transmission assets and cash from Oncor. 
 “Legacy Service Territory” means Sharyland’s
distribution service territory as in existence immediately prior to the consummation of the Exchange Transaction. 

“Oncor” means Oncor Electric Delivery Company LLC. 

“Reclassified Project” means any T&D Project that does not otherwise meet the definition of Footprint Project but Hunt
and the REIT jointly agree, in their sole discretion, to classify such T&D Project as a Footprint Project based upon such factors that the Parties deem relevant, including: (a) the expected rate base of the T&D Project, it being
understood that the Parties generally expect that only T&D Projects with an expected rate base of less than $25 million could constitute a Reclassified Project; (b) whether the T&D Project is physically connected to the T&D
Assets owned by a REIT Entity; and (c) whether the T&D Project is necessary to serve distribution customers situated in either the service territories associated with the assets owned by the REIT Entities or the Legacy Service Territory..

 2. Continuing Effect. Except as expressly amended by this First Amendment, the provisions of the Development Agreement are and
shall remain in full force and effect. 
 [Signatures on Following Page] 

 The Parties have executed this First Amendment as of the date set forth above. 

 

			
	HUNT TRANSMISSION SERVICES, L.L.C.
		
	By:	 	/s/ Hunter L. Hunt
	Name:	 	Hunter L. Hunt
	Title:	 	President
	
	SHARYLAND UTILITIES, L.P.
		
	By:	 	/s/ Greg Wilks
	Name:	 	Greg Wilks
	Title:	 	Chief Financial Officer
	
	INFRAREIT PARTNERS, LP
		
		 	By: InfraREIT, Inc., its general partner
		
	By:	 	/s/ Brant Meleski
	Name:	 	Brant Meleski
	Title:	 	Chief Financial Officer
	
	INFRAREIT, INC.
		
	By:	 	/s/ Brant Meleski
	Name:	 	Brant Meleski
	Title:	 	Chief Financial Officer

 FIRST AMENDMENT TO DEVELOPMENT
AGREEMENT

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