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105781 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 RESOLUTION NO. 10,578 40 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT WITH JEFFERSON AND VERNITA ARNETTE FOR THE LEASING OF CERTAIN OFFICE SPACE FOR AN ALERT CENTER LOCATED AT 1813 WRIGHT AVENUE; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. 248 WHEREAS, on May 3, 1993, the City entered into a Lease agreement to lease office space from Jefferson and Vernita Arnette for the Wright Avenue Alert Center; and WHEREAS, this Lease Agreement expired on May 3, 1996; and WHEREAS, the City has continued to lease the office space for the Wright Avenue Alert Center from the Amettes on a month -to -month basis; and WHEREAS, the City desires to enter into a new Lease agreement with Jefferson and Vernita Arnette for the leasing of office space located at 1813 Wright Avenue for the Wright Avenue Alert Center. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1: The City Manager is authorized to enter into a Lease Agreement %with Jefferson and Vernita Arnette for the leasing of approximately one thousand seven hundred (1700) square feet of certain office space located at 1813 Wright Avenue for the Wright Avenue Alert Center. SECTION 2: The initial primary term of this Lease Agreement will be for a period of three (3) years, with one (1) extension or renewal option of three (3) years. SECTION 3: The City agrees to pay to Jefferson and Vernita Arnette, subject to budgetary approval and annual appropriation, annual rent in the initial primary tern of the Lease in the amount of 55,400.00, payable quarterly. SECTION 4: Eniergeni.y. It is hereby found and determined by the Board of Directors of the City of Little Rock that the ability to provide effective services is essential to the City. Therefore, an emergency is hereby declared to exist, and this Ordinance, being necessary for the preservation of the public peace, health and 0 0 245 1 safety, shall be in full force and effect immediately upon passage and approval by 2 the Board of Directors. 3 4 PASSED: June 15, 1999 5 6 ATTEST: 7 e 8 Aa 1' 1 9 Robbie Hancock, City Cleric 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 APPROVED AS TO LEGAL FORM: Thomas M. Carpenter City Attorney APPROVED: &A, 41 Jim 6jiley, Mayor 0 0 LEASE THIS LEASE ( "Lease ") is entered into this _ day of June, 1999, by and between Jefferson Arnette, Jr. and Vernita Arnette, existing under the laws of the State of Arkansas and having their principal residence in Little Rock, Arkansas as duly authorized agents for themselves as Landlord (collectively the "Landlord ") and City of Little Rock, as Tenant ( "Tenant "): That for and in consideration of the terms, covenants and conditions herein contained, the parties hereby covenant and agree as follows: 1. DEMISED PREMISES. Landlord does hereby let, lease and demise to Tenant, and Tenant does hereby lease from Landlord, the following described property, to -wit (the "Demised Premises "): 1813 Wright Avenue; W 82' ofN 12' of Lot 20; the W82' ofLots 21 & 22; the W 82' of a strip adjacent to the North side of Lot 22, Block 1, Moore and Penzels Addition; consisting of approximately 1700 square feet, together with all and singular the improvements, appurtenances, rights, privileges and easements in any way pertaining thereto including, but not limited to, the right to use in common with Landlord and other tenants, such entrance ways, restrooms, parking facilities and other similar or related facilities as may exist in and about the real estate development of which the Demised Premises is a part and are generally available to all tenants (the "Project "). 2. TERM / RIGHT TO EXTEND. (a) It is agreed that said lease shall be for a period of three (3) years commencing on June 1, 1999, and expiring May 31, 2002. (b) Tenant, if not in default at the time of giving notice, shall have the option to extend the term of this lease for one (1) additional term of three (3) years from and after the expiration of the initial term hereof, upon the same terms, covenants, agreements and conditions as herein set forth, except that the rent payable during any option period shall be mutually agreed upon at the time of exercise of the option. Such election shall be exercised as follows: At least sixty (60) days prior to the expiration of the original term of this Lease, Tenant shall notify Landlord in writing of its election to so exercise; thereupon, such notice of election to exercise shall be, by reference, a part hereof. Should Tenant fail to exercise the option, or should Tenant fail to exercise any subsequent option after having exercised one or more of such option, then Tenant shall have no further right to exercise any option hereunder. 0 0 3. DELIVERY OF POSSESSION. 251 It is mutually agreed that Landlord will endeavor to deliver possession of the Demised Premises to Tenant on the date specified hereinabove in paragraph two. 4. AMERICANS WITH DISABILITIES ACT. Landlord agrees to deliver the Demised Premises to Tenant in full compliance with the Americans With Disabilities Act ( "ADA" ), and regulations promulgated pursuant thereto. Landlord further agrees to indemnify and hold harmless Tenant during the primary lease term, and any renewal terms, if exercised, against any and all cost and expense required to bring the Demised Premises into compliance with the ADA and implementing regulations. 5. RENT. It is agreed that Tenant is to pay Landlord a total sum of five thousand four hundred dollars ($5,400) annually, or four hundred fifty dollars ($450) per month, commencing with an initial quarterly payment of one thousand three hundred fifty dollars ($1,350), payable in advance on the first day of each quarter throughout said term of this lease, except as herinabove specified. 6. USE. Tenant agrees that the Demised Premises shall be used for general office use and for no other purpose whatever (the "Permitted Use "). Tenant further covenants and agrees to comply with all valid laws, statutes, ordinances, regulations and legal requirements governing the use of the Demised Premises and that Tenant will not permit or suffer the Demised Premises to be used for any illegal business or occupation. In addition, Tenant agrees that Tenant shall not allow or permit any nuisance in, on or about the Demised Premises nor suffer waste thereon; that no fire or bankruptcy sales may be conducted within the Demised Premises without the previous written consent of Landlord; that Tenant shall not use the sidewalks adjacent to the Demised Premises for business purposes without the previous written consent of Landlord; that Tenant shall keep its display window in the Demised Premises electrically lighted during such period of time as windows throughout a major portion of the Project are kept lighted; and that Tenant shall keep the Demised Premises, the exterior and interior portions of all windows, doors, and all other glass or plate glass fixtures in a neat and clean condition. Landlord agrees that Tenant shall have, in common with other tenants of the Project, use of such automobile parking facilities for use of Tenant's customers, invitees, licensees and employees, as well as others doing business in the Project. Tenant agrees that it shall require its employees to observe reasonable regulations with respect to the parking of employees' cars as may from time to time be promulgated and furnished to Tenant by Landlord. Tenant will not permit its patrons, invitees, licensees, guests or customers to mill around, congregate or loiter, sit on the sidewalk or on cars, play, litter or drink alcoholic beverages in the parking lot, sidewalk, or other common areas in the Project. In the event Tenant fails to -2- 0 0 252 adequately enforce the provisions of this or any other covenant herein contained, Landlord may, upon twenty -four (24) hours notice to Tenant, employ personnel adequate in the judgement of Landlord to enforce said covenant(s), and Tenant shall reimburse Landlord any expenses incurred therefore as additional rental for the Demised Premises. 7. IMPROVEMENTS AND ALTERATIONS. (a) Tenant will not make any alterations, changes or improvements to the Demised Premises without Landlord's prior written consent. If consent is given, then the cost of such alterations, additions or improvements shall be paid by Tenant. Upon the termination of this lease, Landlord shall have the right to retain the Demised Premises as altered, changed or improved by Tenant. (b) All of the rights, title, and interest of Landlord in and to the leasehold improvement; and any or all property hereunder, shall pass to and vest in Landlord, Landlord's heirs, devises, successors, or assigns. 8. MAINTENANCE AND REPAIRS. (a) Upon the expiration of this lease, in course or by breach of any of its provisions, Tenant will restore the Demised Premises to Landlord in as good condition as when possession was taken by Tenant, ordinary wear and tear excepted. (b) Landlord agrees, at its sole cost and expense, to maintain all parts of the Demised Premises, in good repair and condition, and will take all action and make all structural and nonstructural, mechanical and nonmechanical repairs which might be required to keep all parts of the Demised Premises in good repair and condition. Said maintenance includes, but is not limited to, the plumbing, heating and air conditioning units, fixtures, floors, plaster, plate glass and glass, and all necessary painting throughout the term of this lease. Landlord further agrees, at its sole cost and expense, to keep in good order, condition and repair, the roof, foundations and structural portions of the Demised Premises, except for any damage thereof caused by an act or negligence of Tenant, its customers, employees, invitees, agents, licensees, or contractors. (c) Landlord shall maintain the Demised Premises in compliance with applicable laws, statutes, ordinances and regulations, including, but not limited to, the ADA and regulations promulgated pursuant thereto. 9. LANDSCAPE. Landlord shall, at its sole cost and expense, maintain and landscape the grounds and parking lot of the Demised Premises. -3- 10. FIXTURES. 253 All trade fixtures installed by the Tenant, or acquired by the Tenant independently of this Lease, shall remain the Tenant's property and may be removed by the.Tenant at the expiration or termination of this Lease; provided, however, that Tenant shall restore the Demised Premises and repair any damage thereto caused by such removal. 11. SIGNS. No sign, picture advertisement, or notice, except on the glass of the doors or windows or on the front building facade, shall be displayed on any part of the outside of the project or on or about the Demised Premises without the prior written consent of the Landlord, such consent not being unreasonably withheld. Upon termination of this lease, Tenant will remove any sign, advertisement or notice painted on or affixed to the Demised Premises, and restore the place it occupied to the condition which existed as of the Effective Date of this Lease. 12. UTILITIES. Tenant will be responsible for all utility services used in and from the Demised Premises, and shall pay for all charges imposed for said use of utility services. 13. TAXES. (a) Landlord shall pay all ad valorem real estate taxes and assessments due to improvement districts or governmental bodies which may be levied, assessed or charged against the Demised Premises. (b) Tenant shall be responsible for all taxes attributable to the personal property of Tenant on the Demised Premises and for all license, privilege, use, and occupation taxes, levied, assessed or charged Tenant on account of the Permitted Use of the Demised Premises. 14. INSURANCE. (a) Landlord will maintain, at its sole cost and expense, the following insurance: (1) Insurance against loss by fire, lighting and other risks which at the time are included under "extended coverage" endorsements, in amounts sufficient to prevent Landlord or Tenant from becoming a Co- Insurer of any loss, but in any event in amounts not less than 1001/6 of the actual replacement value of the Demised Premises, less depreciation, exclusive of foundations and excavations.- -4- 0 0 (b) Tenant will maintain, at its sole cost and expense, the following insuranc2 5 (1) Workers' Compensation insurance to the extent required by the laws of the State of Arkansas. (2) Property insurance on the Tenant's contents within the Demised Premises. (c) Such insurance shall be written by companies of nationally recognized financial standing legally qualified to issue such insurance and shall name as insured parties both Landlord and Tenant as their interest may appear. (d) Landlord shall deliver to Tenant and Mortgagee original or duplicate policies or certificates of insurers, satisfactory to Tenant and to Mortgagee, evidencing the existence of all insurance which is required to be maintained by Landlord hereunder, such delivery to be made (i) promptly after the execution and delivery of the Lease, and (ii) not less than thirty (30) days prior to the expiration of any such insurance. (e) Tenant agrees to use and occupy the Demised Premises at its own risk, and that the Landlord shall have no responsibility or liability for any loss of, or damage to, fixtures or other personal property of Tenant. (0 Tenant agrees that Landlord shall not be responsible or liable to Tenant, or to those claiming by, through or under Tenant, for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises, or any part of the Project adjacent to or connected with the Demised Premises, or any part of the building of which the Demised Premises are a part, or otherwise, or for any loss or damage resulting to Tenant or those claiming by, through or under Tenant, or its or their property, from the bursting, stopping or leaking of water, gas, sewer, steam pipes, or floods or other inundation of water. 15. DEFAULT. Tenant or Landlord shall be in default under the provisions of this Lease upon the happening of any of the following events; provided that for any default involving the payment of money, the defaulting party shall be notified in writing of such default and shall have the opportunity to cure such default within ten (10) business days after receipt of such notice; and, provided further, that for any default or breach not involving the payment of money, the defaulting party shall be notified in writing of such default and shall have the opportunity to cure the default within twenty (20) business days after receipt of such notice. (a) Failure to pay the rentals provided for herein at the times, in the amounts and in the manner set forth when the same become due; or -5- • • 2J- (b) Failure to keep or perform any of the covenants, terms, conditions or agreements on the part of Tenant or Landlord herein to be kept or performed; or (c) If any proceedings in bankruptcy or insolvency be filed against Tenant, or if any writ of attachment or writ of execution be levied upon the interest herein of Tenant, and such proceedings or levy shall not be released or dismissed within sixty (60) calendar days thereafter, or if any sale of the leasehold interest hereby created, or any part thereof, should be made under any execution or other judicial process, or if Tenant shall make any assignment for the benefit of creditors or shall voluntarily institute bankruptcy or insolvency proceedings. Upon default and after time to cure has expired, Landlord may (a) take possession of the Demised Premises and lease the same for the account of Tenant upon such terms as might be acceptable to Landlord, and apply the proceeds received from such leasing, after paying the expenses thereof, toward the payment of the rent which Tenant is herein obligated to pay and collect the balance thereof from Tenant; or (b) take possession of the Demised Premises and collect from Tenant all damages sustained by reason of any such breach or default; or (c) pursue any remedy or remedies which may be available to Landlord at law or in equity. Notwithstanding any other provision of the Lease, whenever curing of a default requires more than payment of money, and said default cannot reasonably be cured within the time otherwise permitted, and where Tenant has commenced curing said default and is diligently pursuing same, then Tenant shall be entitled to reasonable time extensions to permit the completion of the curing of such default, and any default that is cured shall not thereafter be grounds for re -entry or for termination of the Lease by Landlord; provided, however, that acceptance of rent by Landlord shall not be deemed a waiver of any preceding breach of any obligation hereunder by Tenant, other than the failure to pay the particular rental so accepted, and the waiver of any breach of any covenant or condition by Landlord or Tenant shall not constitute a waiver of any other breach regardless of knowledge thereof 16. REMEDIES UPON DEFAULT. The Landlord or Tenant shall, during the primary lease term, or any extension or renewal term thereof, have the option to terminate this Lease in the event a default by either party has not been cured within the time periods set forth in paragraph 15 of this Lease. 17. FORCE MAJEURE. Any provision contained herein to the contrary notwithstanding, the Landlord and Tenant shall be excused for the period of delay in the performance of any and all of their obligations under this Lease, and shall not be considered in default, when prevented from so performing by a cause or causes beyond the control of the Landlord or Tenant including, but not limited to, all labor disputes, civil commotion, war, fire or other casualty, shortage of supplies and materials or act of God. no 0 0 18. ASSIGNMENT/ SUBLET. 256 Tenant shall not encumber, assign, or otherwise transfer the Lease, any right or interest in the Lease, or any right or interest in the Demised Premises, or any of the improvements that may now or hereafter be constructed, installed or placed upon the Demised Premises, nor shall Tenant sublet the Demised Premises, or any part thereof, or allow any other persons, other than the agents, employees and servants of Tenant, to occupy or use the Demised Premises or any part thereof, without the prior written consent of Landlord, such consent not being unreasonably withheld. A consent of Landlord to one assignment, subletting, occupation or use by another person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. 19. CONDEMNATION. If the whole of the Demised Premises shall be taken or condemned by a competent authority for any public use or purpose, then the term of this Lease shall cease on the day prior to the taking of possession by such authority, or on the day prior to the vesting of title in such authority, whichever first occurs, and rent hereunder shall be paid to and adjusted as of that day. If only a portion of the Demised Premises shall be so taken, but such taking shall work such a major change in the character of the Demised Premises as to prevent Tenant from using the same for the Permitted Use, then Tenant may cancel and terminate the Lease by giving written notice to such effect to Landlord within fifteen (15) calendar days after the date of any taking or vesting of title. In the event Tenant fails to give such notice, Tenant shall be deemed to have elected to remain in possession and occupation of the remaining portion of the Demised Premises, and all of the terms and conditions of the Lease shall remain in full force and effect, except that the rent reserved to be paid hereunder shall be equitably adjusted taking into account the amount and value of the remaining space. The entire award of damages or compensation for the part of the Demised Premises taken, or the amount paid pursuant to private purchase in lieu thereof, whether such condemnation or sale be total or partial, shall belong to and be the property of the Landlord. Tenant hereby assigns to Landlord any and all such award or purchase price. Nothing herein contained shall be deemed or construed to prevent Tenant from claiming in any condemnation proceeding the value of any trade or other fixtures installed on the Demised Premises by Tenant. 20. DAMAGE OR DESTRUCTION. In the event of a substantial destruction of the Demised Premises, the Lease may be terminated on notice from Landlord to Tenant, or Landlord may elect to rebuild for the use of Tenant, and in that event, Landlord shall notify Tenant within sixty (60) calendar days after said destruction, and shall then proceed with all reasonable diligence, delay due to adjustment of insurance loss and other unavoidable delays excepted, to restore the Demised Premises; and the Lease shall continue in full force and effect, except that, there shall be a proportionate abatement of the rent payable by Tenant during the time the Demised Premises is untenable, or in part untenable. Substantial destruction as herein used means destruction which will cost 30% or more of the value of the -7- 0 0 2 J'/ improvements prior to destruction to restore such improvements. In the event of a partial destruction of the Demised premises, Landlord shall repair the Demised Premises for the use of Tenant, and the Lease shall continue in full force and effect, except that, there shall be a proportionate abatement in the rent payable by Tenant during the time the Demised Premises is untenable, or in part untenable. Partial destruction as herein used means destruction which will cost less than 30% of the value of the improvements prior to destruction, to repair or restore such improvements. 21. SUBORDINATION / NON - DISTURBANCE / ATTORNMENT. (a) This Lease, and all rights of Tenant hereunder, are subject and subordinate to any deeds of trust, mortgages, security agreements, lease assignments or other instruments of security, as well as to any ground leases or primary leases, that now or hereafter cover all or any part of the Demised Premises, the land situated beneath the Demised Premises or any interest of Landlord therein, to any and all advances made on the security thereof, and to any and all increases, renewals, modifications, consolidations, replacements and extensions of any of the foregoing. This provision is hereby declared by Landlord and Tenant to be self - operative and no further instrument shall be required to effect such subordination of this Lease. The Tenant shall, however, upon reasonable demand execute, acknowledge and deliver to Landlord any and all instruments and certificates that in the judgment of Landlord may be necessary or proper to confirm or evidence such subordination. Notwithstanding the generality of the foregoing provisions, Tenant agrees that any such mortgagee, secured party or assignee shall have the right at any time to subordinate any such deeds of trust, mortgages, security agreements, lease assignments or other instruments of security to this Lease. (b) Tenant's possession of the Demised Premises and Tenant's rights and privileges under the Lease, or any renewal or extension term thereof, shall not be diminished or interfered with by any aforesaid mortgagee, secured party or assignee. Landlord shall include such a non - disturbance clause in any instrument creating a lien on the Demised Premises, provided that the form thereof shall be satisfactory to the Tenant and holder of such lien. (c) Tenant agrees to pay all rent due hereunder directly to any aforesaid mortgagee, secured party or assignee, or as Tenant may be directed by the same, upon the receipt of notice from the same that Landlord is in default under their particular security instrument. Tenant agrees in the event it is requested by such mortgagee, secured party or assignee, or any proceedings are brought for the foreclosure or enforcement of any such security instrument, to attorn to the holder of the same and to recognize them as Landlord under this Lease. Tenant agrees to execute and deliver any instrument, acceptable to Tenant and such mortgagee, secured party or assignee, which may be necessary or appropriate in any such event to evidence such attornment. 22. QUIET ENJOYMENT. Landlord covenants and warrants that it is the owner in fee simple absolute of the Demised Premises and may lease said premises as provided herein. Upon payment by Tenant of the rents herein provided and upon the observance and performance of all covenants, terms and conditions 12 25i; upon Tenant's part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the demised premises for the term hereby demised, and any renewal or extension term thereof, without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject to the terms and conditions of this Lease. 23. EXPIRATION OF LEASE. At the end of the term of this Lease, and all extension or renewal terms thereof, Tenant agrees promptly and peaceably to restore possession of the Demised Premises to Landlord in as good condition as it was when delivered to Tenant, ordinary wear and tear excepted. 24. NOTICE. Any notice required or permitted under the terms of this Lease shall be given in writing and sent Certified Mail, Return Receipt requested, to the following contact persons: LANDLORD: Jefferson and Vernita Arnette, Jr. 1812 Wolfe Street Little Rock, Arkansas 72202 TENANT: Director Department of Housing & Neighborhood Programs City of Little Rock 615 West Markham, Suite 100 Little Rock, Arkansas 72201 Either party may, however, at any time, change its contact person by mailing, as aforesaid, written notice to the other party stating the change and setting forth the new contact person. 25. RELATIONSHIP OF PARTIES. It is understood and agreed that the relationship of the parties hereto is strictly that of Landlord and Tenant, that Landlord has no ownership in any enterprise of Tenant, and that the Lease shall not be construed as a joint venture or partnership. Tenant is not and shall not be deemed an agent or representative of Landlord. 26. LANDLORD'S RIGHT OF ENTRY. Landlord shall have the right to enter upon the Demised Premises upon reasonable notice and during normal business hours to inspect the same or to exhibit the Demised Premises to prospective purchasers or Tenants. IE Lease. 0 0 2JJ 27. LANDLORD'S RIGHT OF SALE. Landlord reserves the right to sell the Demised Premises, provided such sale is subject to the 28. TENANT'S INSPECTION OF PREMISES. Tenant acknowledges and agrees that it has examined the Demised Premises, that the Demised Premises is accepted in its condition, and that no representations, warranties or agreements have been made by Landlord, or any agent of Landlord, as to the condition of the Demised Premises which are not herein expressed. 29. HOLD OVER BY TENANT. Should Tenant hold over and remain in possession of the Demised Premises after the expiration of the Lease without Landlord's consent, said hold over shall not be deemed to be a renewal or extension of the Lease, but shall only operate to create a month -to -month tenancy which may be terminated by Landlord at the end of any month and upon thirty (30) calendar days' prior written notice to Tenant. 30. SEVERABILITY. In the event that any provision of the Lease, or part thereof, shall be adjudged invalid or unenforceable by any court of competent jurisdiction called on to enforce or construe the same, then such provision or part only shall be deemed invalid and all remaining terms and provisions of the Lease shall be carved out and performed by the parties with the same force and effect as if the invalid provision or part had never been a part of the Lease. 31. ENVIRONMENTAL DISCLOSURE. The Landlord represents as of the Effective Date of this Lease, that it has no knowledge of any deposit, storage, removal, burial, discharge, spillage, uncontrolled loss, seepage or filtration of any pollutant, oil, petroleum or chemical liquids or solids, liquid or gaseous products, or any toxic waste, hazardous waste or hazardous substances, as those terms are defined in any appropriate and applicable law, code or ordinance including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, at, upon, under or within the Demised Premises as a consequence of ownership or other use thereof. 32. LEASE EFFECTIVE DATE. This Lease shall become effective when signed by all parties hereto upon the date of the last party signing or initialing hereunder. -10- 0 0 i, 33. NON - APPROPRIATION CLAUSE. Notwithstanding the Lease term in Paragraph 2 (a), or any renewal or extension term thereof, this Lease shall terminate at such time as appropriated and otherwise unobligated funds are no longer available to satisfy the obligations of the Tenant hereunder. Tenant shall give Landlord written notice ninety (90) calendar days prior to such termination. 34. WAIVER. Any waiver by the parties hereto of any breach or default by the other party under the terms of this Lease must be in writing and signed by the party waiving said breach or default in order to be effective. A waiver of any terms, covenants, conditions or agreements shall not be construed to be a waiver of any succeeding or continuing breach or default thereof, nor of any other term, covenant, condition or agreement herein contained. 35. HEADINGS. The headings used in this Lease are for the convenience of the parties only and shall not be construed to affect the substantive terms, covenants, conditions and agreements of this Lease. 36. AUTHORITY TO EXECUTE LEASE. The officials who have executed this Lease hereby represent and warrant that they have full and complete authority to act on behalf of the Landlord and Tenant, and that their signatures below, the terms and provisions hereof, constitute valid and enforceable obligations of each. 37. COVENANTS AGAINST CLAIMS. The Landlord hereby warrants and represents to the Tenant that as of the Effective Date of this Lease, it has good, absolute, indefeasible and marketable title to the Demised Premises and that there are no pending or threatened condemnation matters, lawsuits, administrative hearings, claims, leases, tenancies, agreements, encumbrances, liens, restrictions, or defects in title affecting the Demised Premises, or any portion thereof. The Landlord further warrants and represents that it has not received any notice of violation of any governmental regulation affecting the Demised Premises, or portion thereof, and that there are no restrictive covenants, zoning or other ordinances or regulations applicable to the Demised Premises, or portion thereof, which will prevent Tenant from conducting its usual business. Landlord will, during the original term of this Lease, or any extension or renewal term thereof, defend the same and hold harmless the Tenant against any and all claims of any and all persons whomsoever. 38. LEASE BINDING. This Lease and its terms, covenants, conditions and agreements contained herein shall inure -11- 261 to the benefit of and shall extend to and be binding upon the parties hereto, their respective heirs, successors in interest, legal representatives and assigns, except as expressly limited otherwise herein. 39. ENTIRE AGREEMENT/ GOVERNING LAW/ AMENDMENTS. This Lease shall be construed in accordance with the laws of the State of Arkansas. This Lease represents the entire agreement between the parties hereto, and no further representations or warranties have been made. This Lease shall not be amended, changed or modified unless in writing and signed by the parties hereto. IN WITNESS WHEREOF, this Lease has been executed in duplicate, each of which shall be deemed an original, by the parties hereto on the date first appearing above. TENANT: CITY OF LITTLE ROCK CY CARNEY, CITY MANAGER DATE: ATTEST: ROBBIE HANCOCK, CITY CLERK APPROVED AS TO LEGAL FORM: THOMAS M. CARPENTER CITY ATTORNEY -12- LANDLORD: JEFFERSON ARNETTE, JR. By: DATE: VERNITA ARNETTE By: DATE: