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R-2022-126 - 4/14/2022 RESOLUTION NO. R-2022-126 WHEREAS, the City of Round Rock ("City") and KR CC, Inc. ("Tenant") entered into that certain Convention Center Operating Lease, dated as of April 26, 2018 (the "Operating Lease"), pursuant to which the City leases to Tenant, and Tenant leases from the City the Convention Center and the Convention Center Parcel during the Leasehold Tenn; and WHEREAS, Tenant and KR Acquisitions, LLC ("Subtenant") entered into that certain Sublease of Convention Center Operating Lease dated as of April 26, 2018 ("Sublease"), pursuant to which the Tenant subleases to Subtenant, and Subtenant leases from the Tenant the Subleased Premises(as defined in the Sublease); and WHEREAS, pursuant to the Operating Lease, the City and Tenant desire to amend the Operating Lease as set forth herein, such amendment to be binding upon the City, Tenant and Subtenant,Now Therefore BE IT RESOLVEDCOUNCIL OF THE CITY OF ROUND ROCK,TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City the First Amendment to Operating Lease Agreement, a copy of same being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551,Texas Government Code, as amended. CII I Ili2 20222,°416.05 P84 28-Q RESOLVED this 14th day of April,2022. CRAIG , ORG Mayor City of Round ockMa, Texas ATTEST: M""AA N S. iKS, ty Clerk 2 EEXHIBIT "Alp MENT Thi$FIRST AMENDMENT TO OPERATING LEASE AGREEMENT(this "Amendment")is made and entered into as of .,,............. __ Date"), m. ., ,2022(the" ectiveEff between CITY OF ROUND ROCK,TEXAS,a home rule city and municipal corporation(the and KR CC,INC.,a Delaware corporation("Ienanf),and acknowledged and agreed to by KR ACQUISITIONS,LLC,a Delaware limited liability company("&btenanf'). RECITALS AThe City and Tenant entered into that certain Convention Center Operating Lease, dated as of April 26,2018 (the"ORgratin&LeaW'),pursuant to which the City leases to Tenant, and Tenant leases from the City the Convention Center and the Convention Center Parcel during the Leasehold Tenn. B. Tenant and Subtenant entered into that certain Sublease of Convention Center Operating Lease dated as of April 26,2018("autile ase'),pursuant to which the Tenant subleases to Subtenmt,and Subtenant leases from the Tenant the Subleased Premises(as defined in the Sublease). C. Pursuant to the Operating Lease,the City and Tenant desire to amend the Operating Lease as set forth herein,such amendment to be binding upon the City,Tenant and Subtenant. NOW THEREFORE,for good and valuable consideration,the receipt and adequacy of is are hereby acknowledged,the parties agree as follows: 1. Defined Terms. Terms utilized but not defined herein shall have the meanings set forth in the Operating Lease. 2. Section 16.1 of the Operating Lease is hereby deleted in its entirety and replaced as follows: 16.1 Right to Obtain Leasehold Mortgages. Notwithstanding anything to the contrary contained in this Agreement,Tenant shall have the right, out the City's consent,to execute and deliver one or more Leasehold Mortgages encumbering the Leasehold Estate or the direct or indirect ownership interests in Tenant at any time and from time to time;provided,that no such Leasehold Mortgage shall encumber the Fee Estate.The City shall not be required to join in or subordinate the Fee Estate and no such Leasehold Mortgage shall extend to or affect the Fee Estate. Each Leasehold Mortgage shall provide that the Leasehold Mortgagee shall send to the City copies of all notices of material default sent to Tenant in connection with the Leasehold Mortgage or the debt secured thereby,provided that the failure to provide any such notice shall not affect the validity of the mortgage in any manner. 3. Successors and Assigns. This Amendment shall bind and inure to the benefit of the parties and their respective heirs,successors and assigns. 002330-0022-170'TW-ACTTVF.460557tl 9 3 VIOM 1124 AM 2 4. Govemin2 Law. This Amendment is govemed by Texas law. (Signatures appear on thefall owing pages) 0023$04022.,17079�ACTIVE46035719.3 4110M 1124 AM 3 IN WITNESS WHEREOF,the City and Tenant have entered into this Amendment as of the day and year furt above written. CITY: CITY OF ROUND ROCK,TEXAS a home rule city and municipal corporation By:....................................................................­..................................................................................................... Name: Title: ACKNOWLEDGEMENT STATE OF TEXAS § COUNTY OF WILLIAMSON § This instrument was acknowledged before me on the- day of 2022,by as of the CITY OF ROUND ROCK,TEXAS,a home rule city and municipal corporation. Notary Public State of Texas Printed Name My Commission Expires: 002330.0022-V 7070-ACTWE 46065719 3 41W22 1 L24 AM 4 KR CC, Delaware corporation i4 M Y�d�i--, r e' Title: ACKNOWLEDGEMENT r STATE OF WISCONSIN § COUNTY F SAUK § Mar This instrumcnt was acknowledgedbefore a on the-O o W 2022, y r of CC,INC., l a rati n. ....... . Notaryu is State of las?(l My commiNO n m, 0023. 2m1a®19-A 1VE.4SOiSI1O.3. 411912211,24 AM ACKNOWLEDGED AND AGREED TO BY: KR ACQUISITIONS,LLC, Delaware limited liability N e: fty Title: STATEr!!AIKNOWLEDGEMENT S4 r COUNTY OF SAUK § fy i s e o a efor o IE day o w y of KR a ela ae limited liability ctm-pt�'n—y Notary Public State of„4." *' `A My Commission w„ ✓ UNOTAny rue .. 6 41h 211'.24 AM