Document:

EX-10.1

 Exhibit 10.1 

Sixteenth Amended and Restated Rent Supplement 

(McAllen Lease) 
 December 31,
2018 
 This Sixteenth Amended and Restated Rent Supplement (this “Sixteenth Amended Supplement”) between Sharyland
Distribution & Transmission Services, L.L.C. (“Lessor”) and Sharyland Utilities, L.P. (“Lessee”) is executed and delivered on December 31, 2018 to memorialize supplements to the McAllen Lease (as
defined below), effective as of January 1, 2019. Capitalized terms used herein that are not otherwise defined will have the meanings assigned to them in the McAllen Lease. 

WHEREAS, Lessor and Lessee are Parties to a Third Amended and Restated Master System Lease Agreement (McAllen System) dated December 1,
2014 (as amended from time to time in accordance with its terms, the “McAllen Lease”); 
 WHEREAS, on February 28,
2018, the Parties executed a Fifteenth Amended and Restated Rent Supplement (McAllen Lease) effective as of January 1, 2018 (the “Fifteenth Amended Supplement”); 

WHEREAS, the Parties wish to amend and restate the Fifteenth Amended Supplement pursuant to Section 3.2(b) of the McAllen Lease; and 

WHEREAS, the Parties intend to memorialize in this Sixteenth Amended Supplement the Incremental CapEx the Parties expect during 2019. 

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

 

					
	 2010
	  	$	 2,195,000	 
	 2011
	  	$	 504,000	 
	 2012
	  	$	 1,262,963	 
	 2013
	  	$	16,391,255	 
	 2014
	  	$	46,042,142	 
	 2015
	  	$	 2,431,198	 
	 2016
	  	$	 914,401	 
	 2017
	  	$	 928,457	 
	 2018
	  	$	1,368,925	* 
		  	$	 10	** 
	 (Total 2018)
	  	$	1,368,935	*** 
		  	  
	  
	 
	 2019
	  	$	2,308,270	# 
		  	$	5,462,437	## 
	 (Total 2019)
	  	$	7,770,706	### 
		  	  
	  
	 

  

	*	 Represents the amount of distribution Incremental CapEx that the Parties expected to be placed in service in
2018, with an expected weighted average in-service date of December 1, 2018 (“2018 Distribution CapEx”). Rent supplements with respect to this distribution Incremental CapEx were agreed
to and memorialized as part of the Fourteenth Amended and Restated Rent Supplement (McAllen Lease) dated December 31, 2017 (“Fourteenth Amended Supplement”). 

  
 1 

MCALLEN LEASE 

	**	 Represents the aggregate amount of transmission Incremental CapEx the Parties expected to be placed in service
in 2018. Rent supplements with respect to this transmission Incremental CapEx were agreed to and memorialized as part of the Fourteenth Amended Supplement. Of the 2018 transmission Incremental CapEx, $0 was expected to be in service as of the
balance sheet date reflected in Lessee’s first 2018 Regulatory Order (“First 2018 CapEx”), $0 was expected to be in service as of the balance sheet date reflected in Lessee’s second 2018 Regulatory Order
(“Second 2018 CapEx”) and an aggregate of $10 was expected to be placed in service throughout the remainder of 2018 (“2018 Stub-Year CapEx”) and included in the first 2019 Regulatory Order. The Parties
expected the First 2018 CapEx, Second 2018 CapEx and 2018 Stub-Year CapEx, collectively, to have a weighted average in-service date of June 1, 2018. A “Regulatory Order” is defined as
either (i) the PUCT’s approval of Lessee’s application for updated wholesale transmission rates or (ii) final resolution or settlement of a rate case applicable to Lessee’s transmission rates. Pursuant to the Fourteenth
Amended Supplement, the Parties expected the first 2018 Regulatory Order to be effective on June 1, 2018, the second 2018 Regulatory Order to be effective on September 1, 2018, and the first 2019 Regulatory Order to be effective on
May 1, 2019. The Parties have agreed that any Rent Validation with respect to First 2018 CapEx, Second 2018 CapEx or 2018 Stub-Year CapEx will use the actual effective dates of the applicable Regulatory Order (to the extent known), but will
otherwise be determined in accordance with Section 3.2(c) of the McAllen Lease 

	***	 Represents the total amount of transmission and distribution Incremental CapEx that the Parties expected to be
placed in service in 2018. 

	#	 Represents the amount of distribution Incremental CapEx that the Parties expect to be placed in service in
2019, with an expected weighted average in-service date of March 1, 2019. 

	##	 Represents the amount of transmission Incremental CapEx that the Parties expect to be placed in service in
2019, with an expected weighted average in-service date of March 1, 2019. 

	###	 Represents the total amount of transmission and distribution Incremental CapEx that the Parties expect to be
placed in service in 2019 (“2019 CapEx”). 

 Lessee CapEx: 

 

				                       	
	 2010
	  	$	666,488	 
	 2011
	  	$	121,897	 
	 2012
	  	$	263,733	 
	 2013
	  	$	 68,303	 
	 2014
	  	$	 89,405	 
	 2015
	  	$	168,289	 
	 2016
	  	$	 0	 
	 2017
	  	$	 0	 
	 2018
	  	$	 0	 
	 2019
	  	$	 0	 

 Base Rent: 

					
	 2010
	  	$	 5,260,447	 
	 2011
	  	$	 5,453,529	 
	 2012
	  	$	 5,521,881	 
	 2013
	  	$	 6,566,290	 
	 2014
	  	$	 8,445,964	 
	 2015
	  	$	11,818,692	 
	 2016
	  	$	11,860,813	 
	 2017
	  	$	11,118,502	 
	 2018
	  	$	9,345,546	* 
	 2019
	  	$	9,712,472	** 

  

	*	 The amount of 2018 Base Rent included in the Fifteenth Amended Supplement was $9,345,546, including 2018 Base
Rent payments of $777,867 on the 15th day of each month beginning on March 15, 2018 through July 15, 2018 (with respect to January 2018 through May 2018), $779,459 on the 15th day of each month beginning on August 15, 2018 through October 15, 2018 (with respect to June 2018 through August 2018), with the increase in monthly Base Rent reflecting 2017 Stub-Year
CapEx and First 2018 CapEx and commencing June 1, 2018, which was the expected effective date of Lessee’s first 2018 Regulatory Order, and $779,459 on the 15th day of each month
beginning on November 15, 2018 through February 15, 2019 (with respect to September 2018 through December 2018), with the increase in monthly Base Rent reflecting Second 2018 CapEx and commencing September 1, 2018, which was the
expected effective date of Lessee’s second 2018 Regulatory Order. 

  
 2 

MCALLEN LEASE 

	**	 Lessee will make a monthly 2019 Base Rent payment of $793,153 on the 15th day of each month beginning on March 15, 2019 through June 15, 2019 (with respect to January 2019 through April 2019). Lessee will then make a monthly 2019 Base Rent payment of $793,153 on
the 15th day of each month beginning on July 15, 2019 through September 15, 2019 (with respect to May 2019 through July 2019), with the increase in monthly Base Rent reflecting 2018
Stub-Year CapEx and commencing May 1, 2019, which was the expected effective date of Lessee’s first 2019 Regulatory Order included in the Fourteenth Amended Supplement. Lessee will then make a 2019 Base Rent payment of $832,081 on the 15th day of each month beginning on October 15, 2019 through February 15, 2020 (with respect to August 2019 through December 2019). 

Percentage Rent Percentages: 
  

					
	 2010
	  	 	36.993	% 
	 2011
	  	 	36.972	% 
	 2012
	  	 	36.923	% 
	 2013
	  	 	37.0	% 
	 2014
	  	 	36.9	% 
	 2015
	  	 	37.2	% 
	 2016
	  	 	32.1	% 
	 2017
	  	 	31.2	% 
	 2018
	  	 	30.3	% 
	 2019
	  	 	29.9	% 

 Annual Percentage Rent Breakpoints: 
  

					
	 2010
	  	$	 5,260,447	 
	 2011
	  	$	 5,453,529	 
	 2012
	  	$	 5,521,881	 
	 2013
	  	$	 6,566,290	 
	 2014
	  	$	 8,445,964	 
	 2015
	  	$	11,818,692	 
	 2016
	  	$	12,616,219	 
	 2017
	  	$	11,897,593	 
	 2018
	  	$	10,156,546	* 
	 2019
	  	$	10,158,502	** 

  

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

	**	 The 2019 Annual Percentage Rent Breakpoint reflects the same assumptions as the 2018 Annual Percentage Rent
Breakpoint, in addition to the assumptions set forth above regarding the timing of the first 2019 Regulatory Order, as well as the amount of 2018 Stub-Year CapEx and 2019 CapEx. 

  
 3 

MCALLEN LEASE 

 Revenues Attributable to Lessee CapEx: 

 

					
	 2010
	  	$	 60,546	 
	 2011
	  	$	249,481	 
	 2012
	  	$	289,945	 
	 2013
	  	$	345,693	 
	 2014
	  	$	355,744	 
	 2015
	  	$	360,527	 
	 2016
	  	$	206,130	 
	 2017
	  	$	 97,925	 
	 2018
	  	$	 73,431	 
	 2019
	  	$	 45,266	 

  

			
	 TCOS Allocation:
	  	
		  	before June 20, 2013: 100%
		  	between June 20, 2013 and October 17, 2013: 27.8%
		  	between October 17, 2013 and February 25, 2014: 11.8%
		  	between February 25, 2014 and May 1, 2014: 8.2%
		  	between May 1, 2014 and October 3, 2014: 8.6%
		  	between October 3, 2014 and March 31, 2015: 12.0%
		  	between April 1, 2015 and October 31, 2015: 11.9%
		  	between November 1, 2015 and June 13, 2016: 10.6%
		  	between June 14, 2016 and September 22, 2016: 9.8%
		  	between September 23, 2016 and April 13, 2017: 8.5%
		  	between April 14, 2017 and October 25, 2017: 8.0%
		  	between October 26, 2017 and November 9, 2017: 7.5%
		  	between November 10, 2017 and May 31, 2018: 5.9%
		  	between June 1, 2018 and August 31, 2018: 5.9%
		  	between September 1, 2018 and April 1, 2019: 5.7%
		  	between May 1, 2019 and July 31, 2019: 5.4%
		  	starting August 1, 2019: 5.3%

 Term of Rent Supplement: Expires 12/31/19 

  
 4 

MCALLEN LEASE 

 The Parties have executed this Sixteenth Amended Supplement to the McAllen Lease as of the date set forth
above. 
  

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

  

MCALLEN LEASEEX-10.2

 Exhibit 10.2 

Tenth Amended and Restated Rent Supplement 

(ERCOT Transmission Lease) 

December 31, 2018 
 This
Tenth Amended and Restated Rent Supplement (this “Tenth Amended Supplement”) between Sharyland Distribution & Transmission Services, L.L.C. (“Lessor”) and Sharyland Utilities, L.P.
(“Lessee”) is executed and delivered on December 31, 2018, to memorialize supplements to the ERCOT Transmission Lease (as defined below), effective as of January 1, 2019. Capitalized terms used herein that are not
otherwise defined will have the meanings assigned to them in the ERCOT Transmission Lease. 
 WHEREAS, Lessor and Lessee are Parties to a
Lease Agreement (ERCOT Transmission Assets) dated December 1, 2014 (as amended from time to time in accordance with its terms, the “ERCOT Transmission Lease”); 

WHEREAS, on February 28, 2018, the Parties executed a Ninth Amended and Restated Rent Supplement (ERCOT Transmission Lease) effective as
of January 1, 2018 (the “Ninth Amended Supplement”); 
 WHEREAS, the Parties wish to amend and restate the Ninth
Amended Supplement pursuant to Section 3.2(b) of the ERCOT Transmission Lease; and 
 WHEREAS, the Parties intend to memorialize in
this Tenth Amended Supplement the Incremental CapEx the Parties expect during 2019. 
 NOW THEREFORE, in consideration of the premises and
for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties hereto agree to the following: 

1.    The Ninth Amended Supplement is hereby amended and restated in its entirety as set forth below. 

2.    The ERCOT Transmission Lease, except as supplemented by this Tenth Amended Supplement, shall remain in full force and
effect. 
 Incremental CapEx: 
  

					
	 2014
	  	$	18,470,677	 
	 2015
	  	$	22,517,350	 
	 2016
	  	$	 9,050,252	 
	 2017
	  	$	 4,217,866	 
	 2018
	  	$	 759,766	* 
	 2019
	  	$	4,861,790	** 

  

	*	 Represents the aggregate amount of Incremental CapEx the Parties expected to be placed in service in 2018. Rent
supplements with respect to this Incremental CapEx were agreed to and memorialized as part of the Eighth Amended and Restated Rent Supplement (ERCOT Transmission Lease) dated December 31, 2017 (“Eighth Amended Supplement”). Of
the 2018 Incremental CapEx, $0 was expected to be in service as of the balance sheet date reflected in Lessee’s first 2018 Regulatory Order (“First 2018 CapEx”), $0 was expected to be in service as of the balance sheet date
reflected in Lessee’s second 2018 Regulatory Order (“Second 2018 CapEx”), and an aggregate of $759,766 was expected to be placed in service throughout the remainder of 2018 (“2018 Stub-Year CapEx”) and included
in the first 2019 Regulatory Order. The Parties expected the First 2018 CapEx, Second 2018 CapEx and 2018 Stub-Year CapEx, collectively, to have a weighted average in-service date of November 1, 2018. A
“Regulatory Order” is defined as either (i) the PUCT’s approval of Lessee’s application for updated wholesale transmission rates or (ii) final resolution or settlement of a rate case applicable to Lessee’s
transmission rates. Pursuant to the Eighth Amended Supplement, the Parties expected the first 2018 Regulatory Order to be effective on June 1, 2018, the second 2018 Regulatory Order to be effective on September 1, 2018 and the first 2019
Regulatory Order to be effective on May 1, 2019. The Parties have agreed that any Rent Validation with respect to First 2018 CapEx, Second 2018 CapEx or 2018 Stub-Year CapEx will use the actual effective dates of the applicable Regulatory Order
(to the extent known), but will otherwise be determined in accordance with Section 3.2(c) of the ERCOT Transmission Lease. 

	**	 Represents the amount of Incremental CapEx the Parties expect to be placed in service in 2019, with a weighted
average in-service date of September 1, 2019 (“2019 CapEx”). 

  
 1 

ERCOT TRANSMISSION LEASE 

 Lessee CapEx: 
  

					
	 2014
	  	$	0	 
	 2015
	  	$	0	 
	 2016
	  	$	0	 
	 2017
	  	$	0	 
	 2018
	  	$	0	 
	 2019
	  	$	0	 

 Base Rent: 
  

					
	 2014
	  	$	 484,276	 
	 2015
	  	$	2,477,452	 
	 2016
	  	$	4,601,290	 
	 2017
	  	$	4,855,027	 
	 2018
	  	$	5,056,079	* 
	 2019
	  	$	4,974,428	** 
	 2020
	  	$	4,881,768	 
	 2021
	  	$	4,708,024	 
	 2022
	  	$	4,540,132	 

  

	*	 The amount of 2018 Base Rent included in the Ninth Amended Supplement was $5,056,079, including 2018 Base Rent
payments of $421,208 on the 15th day of each month beginning on March 15, 2018 through July 15, 2018 (with respect to January 2018 through May 2018), $421,434 on the 15th day of each month beginning on August 15, 2018 through October 15, 2018 (with respect to June 2018 through August 2018), with the increase in monthly Base Rent reflecting 2017 Stub-Year
CapEx and First 2018 CapEx and commencing June 1, 2018, which was the expected effective date of Lessee’s first 2018 Regulatory Order, and $421,434 on the 15th day of each month
beginning on November 15, 2018 through February 15, 2019 (with respect to September 2018 through December 2018), with the increase in monthly Base Rent reflecting Second 2018 CapEx and commencing September 1, 2018, which was the
expected effective date of Lessee’s second 2018 Regulatory Order. 

	**	 Lessee will make a monthly 2019 Base Rent payment of $406,435 on the 15th day of each month beginning on March 15, 2019 through June 15, 2019 (with respect to January 2019 through April 2019). Lessee will then make a 2019 Base Rent payment of $414,015 on the 15th day of each month beginning on July 15, 2019 through September 15, 2019 (with respect to May 2019 through July 2019), with the increase in monthly Base Rent reflecting 2018 Stub-Year CapEx
and commencing May 1, 2019, which was the expected effective date of Lessee’s first 2019 Regulatory Order included in the Eighth Amended Supplement. Lessee will then make a 2019 Base Rent payment of $421,328 on the 15th day of each month beginning on October 15, 2019 through February 15, 2020 (with respect to August 2019 through December 2019). 

  
 2 

ERCOT TRANSMISSION LEASE 

 Percentage Rent Percentages: 

 

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

 Annual Percentage Rent Breakpoints: 
  

					
	 2014
	  	$	 484,276	 
	 2015
	  	$	2,477,452	 
	 2016
	  	$	4,664,546	 
	 2017
	  	$	4,879,227	 
	 2018
	  	$	5,056,079	* 
	 2019
	  	$	4,937,862	** 
	 2020
	  	$	4,794,596	** 
	 2021
	  	$	4,624,802	** 
	 2022
	  	$	4,460,124	** 

  

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

	**	 The 2019-2022 Annual Percentage Rent Breakpoint reflects the same assumptions as the 2018 Annual Percentage
Rent Breakpoint, in addition to the assumptions set forth above regarding the timing of the first 2019 Regulatory Order, as well as the amount of 2018 Stub-Year CapEx and 2019 CapEx. 

Revenues Attributable to Lessee CapEx: 
  

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

  

	TCOS 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 12, 2016: 3.6% 

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

between September 23, 2016 and April 13, 2017: 3.6% 

between April 14, 2017 and October 25, 2017: 3.6% 

between October 26, 2017 and November 9, 2017: 3.7% 

between November 10, 2017 and May 31, 2018: 2.9% 

between June 1, 2018 and August 31, 2018: 2.9% 

between September 1, 2018 and April 30, 2019: 2.8% 

between May 1, 2019 and July 31, 2019: 2.7% 

starting August 1, 2019: 2.6% 

Term of Rent Supplement:    Expires 12/31/22 

  
 3 

ERCOT TRANSMISSION LEASE 

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

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

  
 4 

ERCOT TRANSMISSION LEASE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]