Sar ES 1858 Peter Zanoni CITY MANAGER PO Box 9277 Corpus Christ ‘Texas 78469-9277 Phone 361-826-3220 Fax 361-826-3839 Petera@ectexas.com worw eetexas.com zoe February 11, 2020 SQH Sports & Entertainment, Inc. Via CMRRR# Attn: Derrick Hegmon 16035 University Oak San Antonio, Texas 78249 Re: Written Notice of Termination of Ground Lease Agreement, as amended, between City of Corpus Christi and SQH Sports & Entertainment, Inc. for Event of Default (the “Lease") Dear Mr. Hegmon: This letter serves as written notice that the City of Corpus Christi is terminating the Lease effective 12:01 a.m. February 11, 2020 for Event of Default pursuant to Section 15.2 of the Lease. As of close of business on February 10, 2020, the Tenant (SQH Sports & Entertainment, Inc.) failed to timely demonstrate to the satisfaction of the City Manager, after written notice and expiration of the 30-day cure period, that Tenant has full funding for construction of the Improvements as well as full funding for any additional public improvements needed for operation of the complex. The Tenant has committed an Event of Default as defined in Section 15.1 of the Lease. Therefore, the City of Corpus Christi is terminating the Lease for Event of Default effective 12:01 a.m. February 11, 2020. Sincerely, Peter Zanoni City Manager Copy: Regular US Mail Copy: Attorney Bryan Stone via email bstone@umhlaw.com Copy: R. Bryan Stone, Attorney Upton, Mickits & Heymann, L.L-P. 802 N. Carancahua, Suite 450 Corpus Christi, Texas 78401