Document:

EX-10.3

 Exhibit 10.3 

Fourteenth Amended and Restated Rent Supplement 

(CREZ Lease) 
 December 31,
2018 
 This Fourteenth Amended and Restated Rent Supplement (this “Fourteenth 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 CREZ 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 CREZ Lease. 

WHEREAS, Lessor and Lessee are Parties to a Fourth Amended and Restated CREZ Lease Agreement dated November 9, 2017 (as amended from time
to time in accordance with its terms, the “CREZ Lease”); 
 WHEREAS, on February 28, 2018, the Parties executed a
Thirteenth Amended and Restated Rent Supplement (McAllen Lease) effective as of January 1, 2018 (the “Thirteenth Amended Supplement”); 

WHEREAS, the Parties wish to amend and restate the Thirteenth Amended Supplement pursuant to Section 3.2 of the CREZ Lease; and 

WHEREAS, the Parties intend to memorialize in this Fourteenth 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 Thirteenth Amended Supplement is hereby amended and restated in
its entirety as set forth below. 
 2.    The CREZ Lease, except as supplemented by this Fourteenth Amended Supplement,
shall remain in full force and effect. 
 Incremental CapEx: 
  

					
	 2013
	  	$	466,424,280	 
	 2014
	  	$	198,982,000	 
	 2015
	  	$	 3,493,096	 
	 2016
	  	$	 3,906,367	 
	 2017
	  	$	 44,499,993	 
	 2018
	  	$	86,778,539	* 
		  	$	 0	** 
	 (Total 2018)
	  	$	86,778,539	*** 
		  	  
	  
	 
	 2019
	  	$	 3,283,251	# 
		  	$	 0	## 
	 (Total 2019)
	  	$	3,283,251	### 
		  	  
	  
	 

  

	*	 Represents the aggregate amount of Incremental CapEx related to the Panhandle Assets (“Panhandle
CapEx”) that 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 Twelfth Amended and Restated Rent Supplement (CREZ Lease) dated
December 31, 2017 (“Twelfth Amended Supplement”). Of the 2018 Panhandle CapEx, an aggregate of $27,181,110 was expected to be in service as of the balance sheet date reflected in Lessee’s first 2018 Regulatory Order
(“First 2018 CapEx”), an aggregate of $43,170,873 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
$16,426,556 was expected to be placed in service throughout the remainder of 2018 (“2018 Stub-Year CapEx”) and to be 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 April 1, 2018. Pursuant to the Twelfth 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. 

  
 1 

CREZ LEASE 

	**	 Represents the aggregate amount of Incremental CapEx related to the Acquired Transmission Assets
(“Acquired Assets CapEx”) that 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 Twelfth Amended Supplement. Of the 2018
Acquired Assets CapEx, $0 was expected to be in service as of the balance sheet date reflected in Lessee’s first 2018 Regulatory Order, $0 was expected to be in service as of the balance sheet date reflected in Lessee’s second 2018
Regulatory Order, and $0 was expected to be placed in service throughout the remainder of 2018 and included in the first 2019 Regulatory Order 

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

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

	##	 Represents the amount of Acquired Assets CapEx that the Parties expect to be placed in service in
2019.

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

 Lessee CapEx: 
  

					
	 2013
	  	$	0	 
	 2014
	  	$	0	 
	 2015
	  	$	0	 
	 2016
	  	$	0	 
	 2017
	  	$	0	 
	 2018
	  	$	0	 
	 2019
	  	$	0	 

 Total Base Rent by Lease Year: 
  

					
	 2013
	  	$	 21,758,233	 
	 2014
	  	$	 67,335,947	 
	 2015
	  	$	 68,524,342	 
	 2016
	  	$	 66,118,564	 
	 2017
	  	$	 70,772,369	 
	 2018
	  	$	114,025,481	* 
	 2019
	  	$	117,332,082	** 
	 2020
	  	$	114,529,218	 

  

	*	 The amount of 2018 Base Rent included in the Thirteenth Amended Supplement was $114,025,481, including 2018
Base Rent payments of $9,129,533 on the 15th day of each month beginning on March 15, 2018 through July 15, 2018 (with respect to January 2018 through May 2018), $9,526,450 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 $9,949,617 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 $9,669,059 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 $9,830,160
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 Twelfth Amended Supplement. Lessee will then make a 2019 Base Rent payment of $9,833,073 on the 15th day of each month beginning on October 15, 2019 through February 15, 2020 (with respect to August 2019 through December 2019). 

Monthly Transition Costs Payment:    $8,662* 
  

	*	 Lessee will make a monthly Transition Costs Payment of $8,662 on the 15th day of each month beginning on January 15, 2018 through December 15, 2019 (with respect to November 2017 through October 2019). 

  
 2 

CREZ LEASE 

 Percentage Rent Rates: 
  

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

 Annual Percentage Rent Breakpoints: 
  

					
	 2013
	  	$	21,758,233	 
	 2014
	  	$	67,335,947	 
	 2015
	  	$	68,524,342	 
	 2016
	  	$	66,109,550	 
	 2017
	  	$	64,404,829	 
	 2018
	  	$	68,832,414	* 
	 2019
	  	$	73,106,965	** 
	 2020
	  	$	71,266,440	** 

  

	*	 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 2017 Stub-Year CapEx, First 2018 CapEx and Second 2018 CapEx. 

	**	 The 2019 and 2020 Annual Percentage Rent Breakpoints reflect 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: 
  

					
	 2013
	  	$	0	 
	 2014
	  	$	0	 
	 2015
	  	$	0	 
	 2016
	  	$	0	 
	 2017
	  	$	0	 
	 2018
	  	$	0	 
	 2019
	  	$	0	 

  

			
	TCOS Allocation:	  	between June 20, 2013 and October 17, 2013: 65.3%
		  	between October 17, 2013 and February 25, 2014: 84.8%
		  	between February 25, 2014 and May 1, 2014: 83.3%
		  	between May 1, 2014 and October 3, 2014: 80.9%
		  	between October 3, 2014 and March 31, 2015: 75.8%
		  	between April 1, 2015 and October 31, 2015: 72.7%
		  	between November 1, 2015 and June 13, 2016: 65.6%
		  	between June 14, 2016 and September 22, 2016: 56.8%
		  	between September 23, 2016 and April 13, 2017: 49.0%
		  	between April 14, 2017 and October 25, 2017: 46.5%
		  	between October 26, 2017 and November 9, 2017: 46.3%
		  	between November 10, 2017 and May 31, 2018: 36.3%
		  	between June 1, 2018 and August 31, 2018: 35.8%
		  	between September 1, 2018 and April 30, 2019: 37.2%
		  	between May 1, 2019 and July 31, 2019: 40.3%
		  	starting August 1, 2019: 39.1%

 Allocated Other Revenue: None 

Term of Rent Supplement: Expires 12/31/20 

  
 3 

CREZ LEASE 

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

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

  
 4 

CREZ LEASEEX-10.4

 Exhibit 10.4 

Second Amended and Restated Rent Supplement 

(Permian Lease) 
 December 31,
2018 
 This Second Amended and Restated Rent Supplement (this “Second 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 Permian 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 Permian Lease. 

WHEREAS, Lessor and Lessee are Parties to a Permian Lease Agreement dated December 31, 2017 (as amended from time to time in accordance
with its terms, the “Permian Lease”); 
 WHEREAS, on February 28, 2018, the Parties executed a First Amended and
Restated Rent Supplement (Permian Lease) effective as of December 31, 2017 (the “First Amended Supplement”); 

WHEREAS, the Parties wish to amend and restate the First Amended Supplement pursuant to Section 3.2 of the Permian Lease; and 

WHEREAS, the Parties intend to memorialize in this Second 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 First Amended Supplement is hereby amended and restated in its
entirety as set forth below. 
 2.    The Permian Lease, except as supplemented by this Second Amended Supplement, shall
remain in full force and effect. 
 Incremental CapEx: 
  

					
	 2018
	  	$	10,025,211	* 
		  	$	58,071,834	** 
	 (Total 2018)
	  	$	68,097,045	*** 
		  	  
	  
	 
	 2019
	  	$	 994,262	# 
		  	$	59,422,355	## 
	 (Total 2019)
	  	$	60,416,617	### 
		  	  
	  
	 

  

	*	 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 May 1, 2018. Rent supplements with respect to this distribution Incremental CapEx were agreed to and memorialized as part of the Rent Supplement
(Permian Lease) dated December 31, 2017 (“Effective Date Rent Supplement”). 

	**	 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 Effective Date Rent Supplement. Of the 2018 transmission Incremental CapEx, an aggregate of $446,511 was expected to be in
service as of the balance sheet date reflected in Lessee’s first 2018 Regulatory Order (“First 2018 CapEx”), an aggregate of $7,255,992 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 $50,369,331 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 September 1, 2018. Pursuant to the
Effective Date Rent 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. 

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

  
 1 

PERMIAN LEASE 

	#	 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 February 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 April 1, 2019. 

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

 Lessee CapEx: N/A 

Base Rent: 
  

					
	 2018
	  	$	53,812,844	* 
	 2019
	  	$	60,572,554	** 
	 2020
	  	$	64,881,382	 

  

	*	 The amount of 2018 Base Rent included in the First Amended Supplement was $53,812,844, including 2018 Base Rent
payments of $4,451,115 on the 15th day of each month beginning on March 15, 2018 through July 15, 2018 (with respect to January 2018 through May 2018), $4,464,736 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 Prior Stub-Year
CapEx (as defined in the First Amended Supplement) and First 2018 CapEx and commencing June 1, 2018, which was the expected effective date of Lessee’s first 2018 Regulatory Order, and $4,540,766 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 $4,486,438 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 $5,014,222 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 Effective Date Rent Supplement. Lessee will then make a monthly 2019 Base Rent payment of $5,516,827
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: 
  

					
	 2018
	  	 	0	% 
	 2019
	  	 	0	% 
	 2020
	  	 	0	% 

 Annual Percentage Rent Breakpoints: N/A 

Revenues Attributable to Lessee CapEx: N/A 
 TCOS
Allocation: N/A 
 Allocated Other Revenue: N/A 

Term of Rent Supplement: Expires 12/31/20 

  
 2 

PERMIAN LEASE 

 The Parties have executed this Second Amended Supplement to the Permian 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

  
 PERMIAN
LEASE

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