EXHIBIT 10(uu)
TO FORM 10-K OF
WELLS REAL ESTATE FUND VII,
L.P.
FOURTH AMENDMENT TO
LEASE
THIS FOURTH AMENDMENT TO
LEASE (this
“Amendment”), dated as of the 15th day of August, 2004
(the “Effective Date of Amendment”), by and between
FUND VII AND VIII ASSOCIATES, a Georgia joint venture
(“Landlord”), and CH2M HILL , a Florida
corporation (“Tenant”).
BACKGROUND
The original lease agreement was
entered into with an effective date of September 20, 1994, by and
between Wells Real Estate Fund VII, L.P. a Georgia limited
partnership (“Fund VII”) and Tenant, with respect to
those premises situated in that certain building located at 3011 SW
Williston Road, Gainesville, Florida 32608, being more particularly
described on Exhibit “A” attached hereto (the
“Property”). The original lease was then amended
pursuant to that certain First Amendment to Lease dated November
14, 1994, that certain Second Amendment dated January 12, 1995 and
that certain Third Amendment dated June 30, 1995 (the original
lease, together with all amendments, is called the
“Lease”). Subsequently, Fund VII contributed the
Property into a joint venture pursuant to that certain Joint
Venture Agreement of Fund VII and Fund VIII Associates dated
February 10, 1995 between Fund VII and Wells Real Estate Fund VIII,
a Georgia limited partnership (“Fund VIII”), as amended
by that certain First Amendment to Joint Venture Agreement of Fund
VII and Fund VIII Associates dated April 1, 1996.
Landlord and Tenant now wish to
amend the Lease as described below.
AGREEMENT
NOW, THEREFORE,
for and in consideration of the
mutual covenants and benefits herein contained, Landlord and Tenant
do hereby agree as follows:
1. Definitions . Capitalized
terms used in this Amendment but not otherwise defined herein shall
have the meanings given in the Lease.
2. Demised Premises . From
and after September 1, 2004 (the “Extension Date”) the
Demised Premises shall mean that certain premises in the Building
located on the Land more particularly described on Exhibit
“B” attached hereto, which consist of approximately
50,877 square feet of Rentable Floor Area, having been measured
according to BOMA standards. In addition, the Rentable Floor Area
of the Building is 61,494, so that Tenant’s Share is
82.73%.
3. Termination of Lease as to
Surrendered Space . Landlord and Tenant agree that
Tenant’s obligation to pay Rent pursuant to the Lease shall
be terminated as it relates to the approximately 5,500 square feet
more particularly described on Exhibit “C” attached
hereto (the “Surrendered Space”) effective as of 11:59
p.m. on August 31, 2004 (the “Termination
Date”).
Notwithstanding the foregoing, Tenant shall
remain in the Surrendered Space subject to the Lease until Landlord
has completed Leasehold Improvements as per Paragraph 7 of this
Fourth Amendment to Lease. Upon completion of such Leasehold
Improvements, Tenant will vacate and surrender possession of the
Surrendered Space to Landlord pursuant to Section 30 of the Lease.
From and after such vacating and surrender, Tenant will have no
further right to occupy the Surrendered Space, the Lease as it
relates to the Surrendered Space will be terminated, and Tenant
will have no further obligations for the Surrendered
Space.
4. Extension of Lease Term .
Commencing on the Extension Date the Lease Term shall hereby be
extended for a period of seventy-five (75) months and shall expire
on November 30, 2010 (the “Expiration Date”) unless
renewed or extended as otherwise provided herein.
5. Base Rental Rate . From
and after the Extension Date, the Base Rental Rate will be a gross
payment of base rent and operating expenses, and such payment shall
be due and payable as set forth in Section 5 of the Lease as
modified herein in the following amounts, subject to adjustments as
specified within this Fourth Amendment to Lease.
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Months
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Per Square Foot
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Operating
Expenses
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Per Square Foot
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9/1/04 - 11/30/05
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$
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16.42
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12/1/05 - 11/30/06
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12.00
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7.00
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0.20
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$
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19.20
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12/1/06 - 11/30/07
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12.36
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7.00
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0.20
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$
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19.56
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12/1/07 - 11/30/08
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12.73
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7.00
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0.20
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$
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19.93
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12/1/08 - 11/30/09
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13.12
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7.00
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0.20
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$
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20.32
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12/1/09 - 11/30/10
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13.51
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7.00
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0.20
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$
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20.71
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6. Tenant’s Additional
Rental . Section 7(b) of the Lease is hereby amended so that
Tenant’s Share of Operating Expenses shall be defined as
Tenant’s Share of the total dollar increase, if any, in
Operating Expenses paid or incurred by Landlord in each calendar
year over the Operating Expenses paid or incurred by Landlord in
the calendar year 2005 (the “Base Year”).
Notwithstanding the foregoing, Landlord shall limit the Operating
Expenses effective 9/1/2004 through 12/31/2005 at an annual rate of
$7.00/square foot, and for subsequent years during the term of the
lease, Landlord shall limit annual increases to Operating Expenses
to 3%, except as provided herein. Landlord’s limit of
Operating Expenses shall not include electrical costs, real estate
taxes or insurance expense and any other expenses outside the
reasonable control of Landlord (the “Excluded Operating
Expenses”), however, such Excluded Operating Expenses shall
be limited to actual expenses as reasonably incurred by the
Landlord in the normal operation of the Building and the
Property.
7. Leasehold Improvements
.
(a) Except as set forth in this
Section, Tenant accepts the Demised Premises in their “as
is” condition on the date that this Amendment is entered
into. Landlord agrees to
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complete certain work (the
“Work”), at Landlord’s cost and expense,
consisting of the following items: (i) installing carpet on the
floors and painting the walls of the Demised Premises, using
Building standard materials or as otherwise noted in this
Amendment; (ii) installing card access security systems to control
eight (8) access points; (iii) and constructing six (6) demised
offices pursuant to space plans, (collectively, the
“Plans”), attached hereto as Exhibit “D”.
All changes, additions and modifications to the Work or the Plans
shall be at Tenant’s sole cost and expense (including,
without limitation, materials above Building standard and
compliance issues necessitated by Tenant’s use and occupancy
of the Demised Premises). All changes in the Work or the Plans must
receive the prior written approval of Landlord, and the cost
thereof shall be borne solely by Tenant. It shall be a condition
precedent to Landlord’s commencement of the Work that Tenant
remit to Landlord payment for all any additional costs due to
changes of the Work or Plans and any failure to do so shall be a
delay caused by Tenant.
(b) Landlord shall also provide to
Tenant an additional allowance, payable by Landlord to Tenant upon
execution of this Fourth Amendment to Lease, the sum of $52,000 for
Tenant’s use as Tenant requires for moving, cabling and any
other costs and expenses related to this Fourth Amendment to
Lease.
8. Right of First Offer .
Section 49 (a) and (b) of the Lease is deleted and replaced with
the following:
“(a) So long as (i) there are
more than twenty-four (24) months remaining in the Lease Term, and
(ii) a period of one (1) year has expired since the Effective Date
of this Amendment, at such time or times that all of the space
described in Exhibit “E” (the “First Offer
Space”) becomes vacant, Landlord will notify Tenant in
writing of the availability of such space. So long as Tenant
provides written notice to Landlord, within ten (10) days after
receipt of Landlord’s notice, of Tenant’s election to
expand the Demised Premises to include the First Offer Space (the
“Election Notice”), then the parties hereto shall
proceed to execute an amendment to this Lease to add the First
Offer Space to the Demised Premises within thirty (30) days of
Landlord’s receipt of the Election Notice. If Tenant fails to
(i) deliver the Election Notice to Landlord on or before the
expiration of such ten (10) day period described above, or (ii)
execute an amendment to the Lease to add the entire First Offer
Space to the Demised Premises within such thirty (30) day period,
Tenant will be deemed to have waived its Right of First Offer and,
for a period of one (1) year from such failure, Landlord may lease
all or a portion of the First Offer Space to any third party
without notice to Tenant or without Tenant’s consent. If such
one (1) year period expires before Landlord leases all or any
portion of the First Offer Space to a third party, then Landlord
must notify Tenant that the First Offer Space is available and
repeat the process above before leasing all or any portion of the
First Offer Space to any third party. This Right of First Offer is
personal to Tenant and is not transferable by Tenant.
(b) If Tenant leases the First Offer
Space pursuant to this Right of First Offer, the same will be added
to the Demised Premises as of the date of Landlord’s receipt
of the Election Notice, and all of the terms and conditions of the
Lease, including the Lease Term and the then current Rent, will
apply to the First Offer Space; provided, however, Landlord will
not be obligated to grant any concessions or allowances with
respect to the First Option Space. Upon the effective date of any
amendment to the Lease entered into as a result of Tenant’s
Right of
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First Offer, Tenant’s Share, Rent and any
other calculation pertaining to the Rentable Floor Area of the
Demised Premises will be recalculated based on the addition of the
First Offer Space to the same.
(c) Tenant will not have any rights
according to this Section if, at t