Document:

Security Agreement

 Exhibit 10.2 
 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT (this “Agreement”) is made and is entered into as of the 22nd day of December 2008, by
BIOVEST INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), in favor of CORPS REAL, LLC, an Illinois limited liability company (the “Secured Party”). 
 Recitals 
 WHEREAS, on
November 10, 2008 (the “Petition Date”), Accentia Biopharmaceuticals, Inc. and its subsidiaries, including the Borrower (collectively, the “Debtors”), filed their Voluntary Petitions for relief under Chapter 11
of the Bankruptcy Code with the United States Bankruptcy Court for the Middle District of Florida (the “Bankruptcy Court”); 
 WHEREAS, since the Petition Date, the Debtors have continued to operate their businesses and manage their properties as debtors in possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code; 
 WHEREAS, Borrower requires post-petition financing to fund its business operations and, therefore, such financing is essential to Borrower’s
bankruptcy estate; 
 WHEREAS, the financing is being provided in good faith and has been negotiated at arm’s length; 
 WHEREAS, Borrower has filed with the Bankruptcy Court its Emergency Motion for Authority to Obtain Postpetition Financing and Grant Senior Liens,
Superpriority Administrative Expense Status and Adequate Protection Pursuant to 11 U.S.C. §§ 364(c) and (d) and F.R.B.P. 4001 dated December 4, 2008 [Doc. No. 86] (the “Financing Motion”); 
 WHEREAS, the Bankruptcy Court has entered its Interim Order Granting Debtor’s Emergency Motion for Authority to Obtain Postpetition Financing and
Grant Senior Liens, Superpriority Administrative Expense Status and Adequate Protection Pursuant to 11 U.S.C. §§ 364(c) and (d) and F.R.B.P. 4001 dated December 22, 2008 [Doc. No. 119] (the “Interim Order”),
pursuant to which, among other things, the Bankruptcy Court has granted the Financing Motion, on an interim basis, and authorized Borrower to borrow on a secured basis from the Secured Party the principal amount of $750,000 subject to being
increased to $3,000,000 upon the entry of a final order of the Bankruptcy Court granting the Financing Motion (the “Final Order”); 
 WHEREAS, pursuant to that certain Secured Promissory Note of even date herewith made by Borrower for the benefit of Secured Party (the “Note”), Secured Party has agreed to advance to Borrower, on a revolving basis, funds in
the maximum principal amount of up to $3,000,000 (the “DIP Facility”) in accordance with the Interim Order and the Final Order as applicable; and 
 WHEREAS, in order to more fully secure Borrower’s obligations under the Note, Borrower has agreed to grant to Secured Party a lien on and security interest in all property of Borrower pursuant to Sections
364(c)(2) and 364(d)(1) of the Bankruptcy Code, in accordance with the Interim Order and the Final Order as applicable, which liens and security interests shall be senior to all prepetition and postpetition liens on property of Borrower. 

 NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements
contained herein, and other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the parties hereto, intending to be legally bound thereby, agree as follows: 
 Section 1. Security Interest. Borrower hereby grants to Secured Party a security interest (the “Security Interest”) in
the items of collateral described on Exhibit A hereto and in all attachments, additions, replacements, substitutions, and accessions and in all proceeds thereof in any form now existing, after acquired and hereafter arising (the
“Collateral”). 
 Section 2. Indebtedness Secured. This Agreement and the Security
Interest created by it secures payment of the DIP Facility owing by Borrower to Secured Party, and whether the DIP Facility is, from time to time, reduced and thereafter increased or entirely extinguished and thereafter reincurred (the
“Indebtedness”). The Indebtedness includes any credit extended, sums advanced, and any expenses incurred by Secured Party and specifically includes the DIP Facility of Borrower to Secured Party evidenced by the Note. 
 Section 3. Covenants and Warranties. Borrower hereby covenants and warrants that, at the execution hereof and at all times throughout
the duration hereof: 
 (a) Borrower will join with Secured Party to file, wherever Secured Party deems appropriate, financing statements in
the form and content required by Secured Party, describing the Collateral in the same manner as it is described herein and Borrower will pay all costs of such filing. From time to time at the request of Secured Party, Borrower shall execute one or
more financing statements and such other documents and do such other acts and things, all as Secured Party may reasonably request, regarding the Security Interest in the Collateral. 
 (b) Secured Party may examine and inspect the Collateral at any time, wherever located. 
 Section 4. Event of Default. Borrower shall be in default under this Agreement and the Note upon the occurrence of any Event of
Default, as defined in the Interim Order. 
 Section 5. Secured Party’s Rights and Remedies. Upon the occurrence of
any Event of Default or at any time thereafter, and subject to the provisions of the Interim Order and the Final Order as applicable: 
 (a)
Secured Party may, at its option, declare all of the Indebtedness secured by this Agreement (notwithstanding any provisions of any agreement with respect to the Indebtedness to the contrary) immediately due and payable without demand or notice of
any kind, and the Indebtedness thereupon shall become due and payable immediately without demand or notice (but with such adjustments, if any, with respect to interest or other charges as may be provided for in the promissory notes or other writings
evidencing the Indebtedness secured). 
 (b) Secured Party and its agents are authorized to enter into and enter onto any premises where the
Collateral may be located for the purpose of taking possession of the Collateral and any records thereof and Secured Party may, at its option, demand Borrower at Borrower’s expense to assemble the Collateral and make the Collateral available to
Secured Party at a convenient place acceptable to Secured Party and, after notice to the Borrower as hereinafter provided, and other reasonable notice to secured parties of record, Secured Party may sell or otherwise dispose of the Collateral at
public or private sale, without further notice or advertisement, at which sale Secured Party may become the purchaser. 

 (c) Secured Party may demand that Borrower shall upon receipt by Borrower of any proceeds covered hereby
or of any check, draft, or other instrument representing the proceeds, forthwith and without further notice or demand deliver the same to Secured Party in the form in which the said items are received, endorsed by Borrower for payment to Secured
Party. 
 (d) Secured Party may by written notice deem Borrower to have transferred the Collateral to Secured Party and to have constituted
and appointed Secured Party its true and lawful attorney-in-fact with full and irrevocable power and authority in the name, place and stead of Borrower, from time to time, in Secured Party’s discretion to demand, collect, receive and give
receipts for any and all monies due on the Collateral or due otherwise under or with respect to any of the Collateral and to endorse any checks or other instruments or orders and to file any claims and take any other action or proceeding deemed by
Secured Party appropriate for the purpose of collecting any and all such monies whenever they may become payable. Secured Party may reasonably require Borrower to assist Secured Party in any and all such collections. 
 (e) Secured Party shall have and may exercise, from time to time, any and all rights and remedies of a secured party under the Uniform Commercial Code of
Florida and any and all rights and remedies available to a secured party under any other applicable law. 
 (f) Any notice of sale,
disposition, or other intended action by Secured Party, mailed to Borrower at its business offices in Tampa, Florida or at any other address to which Borrower has requested in writing that notices be sent, at least five (5) days prior to such
action, shall constitute reasonable notice to Borrower. 
 (g) In the event of a sale or other disposition of the Collateral or the receipt
of any proceeds of the Collateral by Secured Party, after all of the Indebtedness with appropriate interest and all costs and expenses of Secured Party with respect to the possession and sale of the Collateral have been paid in full as appropriate,
the surplus, if any, shall be paid to Borrower by Secured Party, and any Collateral remaining shall be transferred and reassigned to Borrower by Secured Party; and in the event of a deficiency, there shall be due from Borrower and Borrower shall
immediately pay to Secured Party the difference between the amounts received by Secured Party and the remaining sum secured hereby, plus all costs and expenses of Secured Party in repossessing, transporting, repairing, storing, selling or otherwise
handling the Collateral pursuant to such sale or other disposition. 
 (h) All remedies hereunder shall be cumulative and not alternative.
Borrower shall pay promptly the costs and expenses of Secured Party of collection of any and all Indebtedness, enforcement of rights under this Agreement, including reasonable attorneys’ fees, and those costs, expenses, and attorneys’ fees
incurred in appellate proceedings and expenses and attorneys’ fees on any actions otherwise with respect to the Collateral. 
 Section 6. Rights and Remedies of Borrower. Subject to the provisions of the Interim Order and the Final Order as applicable, Borrower shall have the rights and remedies provided in this Agreement and Borrower
specifically waives and releases all rights provided in Article 9 of the Uniform Commercial Code in force in the State of Florida on the date of this Agreement. 
 Section 7. Miscellaneous. 
 (a) Borrower authorizes Secured Party at Borrower’s
expense to file any financing statement or statements relating to the Collateral (without Borrower’s signature thereon) which Secured Party deems appropriate, and Borrower appoints Secured Party as Borrower’s attorney-in-fact to execute
any such financing statement or statements in Borrower’s name and to perform all other acts which Secured Party deems appropriate to perfect and to continue perfection of the Security Interest. 

 (b) Without limiting any other right of Secured Party, whenever Secured Party has the right to declare
any Indebtedness to be immediately due and payable (whether or not it has so declared), Secured Party may set off against the Indebtedness all monies then owed to the Borrower by Secured Party in any capacity whether due or not and Secured Party
shall be deemed to have exercised its right to set off immediately at the time its right to such election accrues. 
 (c) Upon
Borrower’s failure to perform any of its duties hereunder, Secured Party may but it shall not be obligated to perform any of such duties and Borrower shall forthwith upon demand reimburse Secured Party for any expense incurred by Secured Party
in so doing. 
 (d) No delay or omission by Secured Party in exercising any right hereunder or with respect to any Indebtedness shall operate
as a waiver of that or any other right, and no single or partial exercise of any right shall preclude Secured Party from any other or further exercise of any other right or remedy. Secured Party may cure any default by Borrower in any reasonable
manner without waiving the default so cured and without waiving any other prior or subsequent default by Borrower. 
 (e) Secured Party shall
have no obligation to take and Borrower shall have the sole responsibility for taking any steps to preserve rights against all prior parties. Borrower waives presentment for payment, notice of protest, notice of nonpayment, notice of dishonor and
protest of any instrument at any time held by Secured Party on which Borrower is in any way liable and, if waivable, waives notice of any other action taken by Secured Party. 
 (f) The singular pronoun shall include the plural, and the neuter shall include the masculine and feminine. 
 (g) This Agreement may not be modified or amended nor shall any provision of it be waived except by a written instrument signed by Borrower and Secured
Party. 
 (h) This Agreement is a continuing agreement and shall survive any closing and shall remain in force until Secured Party shall
provide written notice of its termination and thereafter until all of the Indebtedness contracted for or created before receipt of the notice and any extension or renewals of that Indebtedness (whether made before or after receipt of the notice)
together with all interest thereon both before and after the notice, shall be paid in full. 
 Section 8. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of Illinois, without reference to principles of choice or conflict of law thereunder. Whenever possible, each provision of this Agreement shall be interpreted to be
effective and valid under applicable law. If any provision of this Agreement is prohibited by or invalid under applicable law, the provision shall be ineffective only to the extent of the prohibition or invalidity, without invalidating the remainder
of the provision or the other remaining provisions of this Agreement. 
 Section 9. Notice. All notices, requests,
demands, claims, and other communications hereunder shall be in writing and given in accordance with the notice provisions of the Note. 
 Section 10. Jurisdiction. The parties hereby agree that the Bankruptcy Court shall have exclusive jurisdiction to hear and determine any claims or disputes between the parties hereto pertaining directly or indirectly to
this Agreement or to any matter arising therefrom. The parties hereto expressly submit and consent in advance to such jurisdiction and venue. 

 Section 11. Interim Order and Final Order. This Agreement is executed pursuant to the
terms of the Interim Order and the liens and security interests in the Collateral granted herein to Secured Party shall have the priority as set forth in the Interim Order and the Final Order as applicable. To the extent there is any conflict or
inconsistency between this Agreement and the Interim Order or the Final Order, the Interim Order or the Final Order as applicable shall control. 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above-written. 
  

			
	BORROWER:
	
	 BIOVEST INTERNATIONAL, INC.,
 a
Delaware corporation

		
	By:	 	 /s/ Alan M. Pearce

	Name:	 	Alan M. Pearce
	Title:	 	Chief Financial Officer
	
	SECURED PARTY:
	
	 CORPS REAL, LLC, 
 an Illinois limited
liability company

		
	By:	 	 /s/ Ronald E. Osman

	Name:	 	Ronald E. Osman
	Title:	 	Manager

 Exhibit A 
 Description of the Collateral 
 The term “Collateral” shall include all of the property and
assets of BIOVEST INTERNATIONAL, INC. and its bankruptcy estate of every kind or type whatsoever, tangible, intangible, real, personal and mixed, whether now owned or existing or hereafter acquired or arising and regardless of where located,
and including, without limitation, all property of the bankruptcy estate of Borrower within the meaning of Section 541 of the Bankruptcy Code, and all proceeds, rents and products of all of the foregoing and all distributions thereon; provided,
however, that the term “Collateral” shall specifically not include (i) any and all claims, causes of action or rights arising under Chapter 5 of the Bankruptcy Code, including Sections 544, 545, 547, 548, 549, 550, 551 and 553 of the
Bankruptcy Code, and all proceeds or recoveries therefrom, and (ii) any and all claims or causes of action that exist or may exist, including under Section 541 of the Bankruptcy Code, in favor of Borrower or Borrower’s bankruptcy
estate against the Secured Party, any principal or representative of the Secured Party or any person with an interest in the Secured Party.Purchase and Sale Agreement dated as of December 18, 2008

 Exhibit 10.1 
 PURCHASE AND SALE AGREEMENT 
 Between 
 WELLS TIMBERLAND OPERATING PARTNERSHIP, L.P. 
 and 
 WELLS REAL ESTATE FUNDS, INC. 
 December 18th, 2008 

 PURCHASE AND SALE AGREEMENT 
 THIS AGREEMENT is made as of December 18th, 2008 between Wells Timberland Operating Partnership L.P. (“Wells Partnership”),
a Delaware limited partnership, as the sole member and hereinafter referred to as “Seller” of Wells Timberland Acquisition, LLC, a Delaware limited liability company (“Company”), and Wells Real Estate
Funds, Inc., a Georgia corporation (“Buyer”), which cumulatively shall be referred to as the “Parties” or independently as a “Party.” 
 Statement of Background Information 
 A. Seller owns all of the membership
interests in Company. 
 B. Company currently owns all the membership interests in MWV SPE, LLC (“SPE”) and
Timberlands II, LLC. 
 C. Company and Seller will execute an Assignment and Assumption Agreement in substantially the form as set
forth in Exhibit A attached hereto (the “Assignment Agreement”) whereby Company will distribute to Seller all of its membership interests in Timberlands II, LLC. 
 D. Seller wishes to sell and Buyer wishes to purchase all of Seller’s membership interests in Company (the “Membership Interests”).

 E. This Purchase and Sale Agreement (the “Agreement”) is dependent upon, and is to be executed concurrently with, the
execution of the Assignment Agreement and the transactions contemplated by the Assignment Agreement and this Agreement shall be deemed to occur simultaneously. 
 F. Seller is transferring its interest in Company so that its parent, Wells Timberland REIT, Inc., may qualify as a real estate investment trust as defined in Section 856 of the Internal Revenue Code.

 Statement of Agreement 
 NOW, THEREFORE, to effect such transactions and in consideration of the mutual covenants, representations, warranties and agreements hereinafter set forth and other good and valuable consideration, the receipt of which is hereby
acknowledged by each Party, and intending to be legally bound hereby, the Parties hereto agree as follows: 

 Article I 
 Purchase and Sale; Terms of Payment 
 Section 1.01 Purchase and Sale of Membership
Interests. Upon the terms and subject to the conditions set forth in this Agreement, Seller hereby sells, assigns and transfers, and Buyer hereby purchases, all of Seller’s right, title and interest in and to the
Membership Interests. 
 Section 1.01 Payment of Purchase Price. Concurrent with the execution of this Agreement, Buyer
shall deliver to Seller as the purchase price for the Membership Interests Two Million Thirteen Thousand and Two Hundred Sixty Four Dollars (U.S. $2,013,264) (the “Purchase Price”). 
 Article II 
 Representations and
Warranties 
 Regarding the Company 
 Seller hereby represents and warrants to Buyer as follows: 
 Section 2.01 Organization and Good
Standing. Company is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. 
 Section 2.02 Due Authorization. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated hereby, have been duly authorized by all necessary
corporate action on the part of Seller. This Agreement has been duly executed and delivered by Seller, and is a legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles and, except as expressly contemplated herein, Seller does not need to give any
notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. 
 Section 2.03 Noncontravention. The execution, delivery and performance of this Agreement by Seller does not and shall not
(a) conflict with, result in any breach of or constitute a default (or an event which, with the giving of notice or passage of time, or both, would constitute a default) under, any term or provision of the organizational documents of Seller or
the Company or any material agreement (including, without limitation, the LLC agreement of SPE (“LLC Agreement”), the Purchase Agreement dated August 3, 2007 between the Company and MeadWestvaco Coated Board, Inc. (“MWV
Purchase Agreement”) and any agreements 

  

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contemplated by the MWV Purchase Agreement), order, decree or other material instrument to which Seller or Company is party or by which Seller or Company is
bound or (b) violate any provision of any law, rule or regulation applicable to Seller or the Company of any regulatory body, administrative agency or other governmental instrumentality having jurisdiction over Seller or the Company or their
respective properties. No consent, license, approval or authorization from, or registration or declaration with, any governmental body, agency or authority, nor any consent, approval, waiver or notification of any creditor or lessor is required in
connection with the execution, delivery and performance by Seller of this Agreement except such as have been obtained and are in full force and effect. 
 Section 2.04 Litigation. There are no (i) civil or criminal actions, suits, claims, investigations or legal or administrative or arbitration (or other binding alternative dispute resolution)
proceedings pending or, to the Knowledge of Seller, threatened against the Company, or (ii) orders, writs, judgments, injunctions, decrees, awards or similar commands of any court, any government agency or other governmental body, or any
arbitration tribunal or panel, by which the Company is bound. 
 Section 2.05 Capitalization of the Company. The
Membership Interests represent all of the outstanding ownership interests of any kind in Company and there are no options, warrants, agreements or other rights outstanding to acquire an ownership interest in Company. 
 Section 2.06 Execution of Contribution Agreement. Concurrently with the execution of this Agreement, Seller shall cause Buyer to
execute the Contribution Agreement (as defined in Section 3.04) and deliver a counterpart of the Contribution Agreement, executed by Buyer, to Company. 
 Article III 
 Representations and Warranties of Buyer 
 Buyer hereby represents and warrants to Seller as follows: 
 Section 3.01 Organization and Good Standing. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Georgia. 
 Section 3.02 Due Authorization. The execution, delivery and performance of this Agreement, and the consummation of the transactions
contemplated hereby, have been duly authorized by all necessary corporate action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer, and is a legal, valid and binding obligation of Buyer enforceable against Buyer in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles and, except as
expressly contemplated herein, Buyer does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this
Agreement. 
  

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 Section 3.03 Noncontravention. The execution, delivery and performance of this
Agreement does not and shall not (a) conflict with, result in any breach of or constitute a default (or an event which, with the giving of notice or passage of time, or both, would constitute a default) under, any term or provision of the
organizational documents of Buyer or any material agreement, order, decree or other material instrument to which Buyer is party or by which Buyer is bound, (b) violate any provision of any law, rule or regulation applicable to Buyer of any
regulatory body, administrative agency or other governmental instrumentality having jurisdiction over Buyer or its properties, or (c) result in a violation of any order, writ, injunction, judgment, decree, law, statute, rule or regulation to
which Buyer is a Party. No consent, license, approval or authorization from, or registration or declaration with, any governmental body, agency or authority, nor any consent, approval, waiver or notification of any creditor or lessor is required in
connection with the execution, delivery and performance by Buyer of this Agreement except such as have been obtained and are in full force and effect. 
 Section 3.04 Execution of Contribution Agreement. Concurrently with the execution of this Agreement, Buyer shall execute a Contribution Agreement with Company (“Contribution
Agreement”), whereby Buyer agrees to contribute to Company up to U.S. $8,755,538 plus any accrued and unpaid interest on the Member Note (as such term is defined in the LLC Agreement) to the extent such unpaid interest together with
the principal of the Member Note exceeds $8,755,538, in the event Company must pay its obligation under the Member Note and does not have sufficient assets with which to satisfy its liability under the Member Note or fails, for whatever reason, to
pay all or part of the Member Note that has become due and payable. Immediately upon execution of this Agreement, Buyer shall deliver a true and correct copy of the fully executed Contribution Agreement to SPE. 
 Section 3.05 Maintenance of Sufficient Net Worth. Buyer covenants that as of the date of this Agreement it has and shall thereafter
maintain, for so long as it owns Company, a net worth of at least U.S. $ 25,000,000, excluding its ownership interest in Company. Upon the reasonable request of the Board of Managers of SPE (including the Special Manager), Buyer shall
provide information as is reasonably sufficient to verify that it has a net worth of at least U.S. $25,000,000. 
 Section 3.06
Acknowledgement of Pledge Agreement. Buyer acknowledges that pursuant to a Pledge Agreement dated October 9, 2007, as amended, among Grantors (as defined in such Pledge Agreement) and Wachovia Bank National Association, as
administrative agent for various lending institutions (“Grantee”), Company granted a security interest in its membership interests in Timberlands II, LLC to Grantee, and such security interest remains in effect. Buyer also acknowledges
that it has been given the opportunity to review such Pledge Agreement and related documentation. 
 Section 3.07 Additional
Representations or Warranties. Except as expressly set forth in Section 3.01 through Section 3.07 hereof or in the Contribution Agreement, Buyer makes no representations or warranties to Seller, express or implied, and no
representations or warranties by Buyer to Seller shall be deemed to arise hereafter except as set forth in this Agreement and the documents contemplated hereby and delivered at the Closing by Buyer. 
  

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 Article IV 
 Remedies for Breaches of this Agreement 
 Section 4.01 Survival of Representations,
Warranties and Covenants. All of the representations, warranties and covenants of the parties contained herein shall survive the Closing hereunder and continue in full force and effect until the expiration of the statute of limitations
applicable thereto. 
 Section 4.02 Indemnification Provisions for Benefit of Buyer. 
 (a) Indemnification. Subject to the terms and conditions contained in this Agreement, in the event that Seller breaches any of its
representations, warranties, or covenants contained herein, and Buyer makes a written claim for indemnification against Seller within the applicable period set forth in Section 4.01 above, then such Seller agrees to indemnify Buyer from and
against any claims, liabilities, losses, expenses, fees and taxes, including court costs and reasonable attorneys’ fees and expenses Buyer may incur through and after the date of the claim for indemnification resulting from, arising out of,
relating to, or caused by any such breach. Indemnification pursuant to the terms of this Section 4.02 shall be the sole and exclusive remedy against Seller for any breach of this Purchase Agreement. 
 (c) Maximum Liability. Notwithstanding anything else contained herein to the contrary, the maximum liability of Seller under this
Agreement shall be the Purchase Price. 
 Section 4.03 Indemnification Provisions for Benefit of Seller. In the event
Buyer breaches any of its representations, warranties, and covenants contained herein, and Seller makes a written claim for indemnification within the applicable period set forth in Section 4.01 above, then Buyer agrees to indemnify Seller from
and against any claims, liabilities, losses, expenses, fees and taxes, including court costs and reasonable attorneys’ fees and expenses Sellers may incur through and after the date of the claim for indemnification resulting from, arising out
of, relating to, in the nature of, or caused by the breach. Indemnification pursuant to the terms of this Section 4.03 shall be the sole and exclusive remedy against Buyer for breaches of this Purchase Agreement. 
 Section 4.04 Matters Involving Third Parties. 
 (a) If any third party shall notify any Party (the “Indemnified Party”) with respect to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification
against any other Party (the “Indemnifying Party”) under this Article VIII, then the Indemnified Party shall promptly notify the Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified
Party in notifying the Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnifying Party thereby is prejudiced. 
 (b) The Indemnifying Party will have the right to defend the Indemnified Party against the Third Party Claim with counsel of its choice so long as
the Indemnifying Party 

  

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notifies the Indemnified Party in writing within 15 days after the Indemnified Party has given notice of the Third Party Claim that the Indemnifying Party
will undertake such defense. 
 (c) So long as the Indemnifying Party is conducting the defense of the Third Party Claim, (i) the
Indemnified Party may retain separate co-counsel at its sole cost and expense and participate in the defense of the Third Party Claim, (ii) the Indemnified Party will not consent to the entry of any judgment or enter into any settlement with
respect to the Third Party Claim without the prior written consent of the Indemnifying Party, and (iii) the Indemnifying Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim
without the prior written consent of the Indemnified Party (not to be withheld unreasonably). 
 (d) In the event the Indemnifying
Party fails to conduct the defense of the Third Party Claim, (i) the Indemnified Party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to, the Third Party Claim in any manner it may deem
appropriate (and the Indemnified Party need not consult with, or obtain any consent from, any Indemnifying Party in connection therewith), and (ii) the Indemnifying Party will remain responsible for any claims, liabilities, losses, expenses,
fees and taxes, including court costs and reasonable attorneys’ fees and expenses the Indemnified Party may incur resulting from, arising out of, relating to, in the nature of, or caused by the Third Party Claim to the extent provided in this
Article 4. 
 Section 4.05 No Additional Representations or Warranties. Except as expressly set forth in Articles II and IV
hereof, Seller makes no representations or warranties to Buyer, express or implied, and no representations or warranties by Seller to Buyer shall be deemed to arise hereafter, except as specifically set forth in this Agreement. 
 Article V 
 Miscellaneous

 Section 5.01 No Third-Party Beneficiaries. Except as otherwise expressly provided for in this Agreement, including
in Section 5.07 with respect to SPE, nothing in this Agreement, express or implied, is intended or shall be construed to confer upon or give to any member or partner of any Seller or shareholder or employee of Buyer or any other Person, other
than the Parties hereto (and their successors and permitted assigns), any rights, remedies or other benefits under or by reason of this Agreement. 
 Section 5.02 Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this
Agreement or any of his or its rights, interests, or obligations hereunder without the prior written approval of the other Party. 
 Section 5.03 Counterparts. This Agreement may be executed in any number of counterparts, and by any Party on separate counterparts, each of which as so executed and delivered shall be deemed an original, but all of which
together shall constitute one and the same instrument, and it shall not be necessary in making proof of this Agreement as to any Party 

  

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hereto to produce or account for more than one such counterpart executed and delivered by such Party. 
 Section 5.04 Headings. The Article and Section headings, and the table of contents, contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
 Section 5.05 Notices.
All notices, certificates, requests, demands, claims, and other communications hereunder shall be given in writing and shall be delivered personally (including by personal courier or delivery service) or sent by facsimile, telex or telegram or by
the registered or certified mail (return receipt requested), postage prepaid, to the Parties at the following address (or at such other addresses as the shall be specified by like notice): 
  

					
		 	(a)	  	 If to Seller, to:
  
 Wells Timberland Operating Partnership, L.P.
 6200 The Corners
Parkway
 Norcross, GA 30092
 Facsimile No.: (770) 243-8172

 Telephone No.: (770) 243-8619
 Attention: Brian
Davis

			
		 		  	 With a copy to:
  
 Powell Goldstein LLP
 One Atlantic Center
 1201 West Peachtree Street, NW
 Atlanta, GA 30309-3488
 Facsimile No.: (404) 572-6999
 Telephone No.: (404) 527-4545
 Attention: Glenn Dunaway 

			
		 	(b)	  	 If to Buyer, to:
  
 Wells Real Estate Funds, Inc.
 6200 The Corners Parkway
 Norcross, GA 30092
 Facsimile No.: (770) 243-8172
 Telephone No.: (770) 243-8124
 Attention: Douglas P. Williams

  

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 Any notice given personally or by mail or telegram shall be effective when received. Any notice given by
telex or facsimile shall be effective when the appropriate telex or facsimile answerback is received. 
 Section 5.06 Governing
Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Georgia, including matters of validity, construction, effect, performance and remedies (without giving effect to any choice or
conflict of law provision or rule, whether of the State of Georgia or any other jurisdiction, that would cause the application of the laws of any jurisdiction other than the State of Georgia). 
 Section 5.07 Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in
writing and signed by all of the Parties hereto, provided, that, any amendment of Article II, Article III, Section 4.01 or this Section 5.07 may only be made with the consent of the Board of Mangers of SPE (including the vote of the
Special Manager). Any purported amendment of Article II, Article III, Section 4.01 or this Section 5.07 without the consent of the Board of Mangers of SPE (including the vote of the Special Manager) shall be void. Any Party hereto may, by
written notice to the other Parties, waive (but only as to itself) any provision of this Agreement. No waiver by any Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to
extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. 
 Section 5.08 Severability. The provisions of this Agreement shall be deemed severable and any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof. If any provision of this Agreement, or the application thereof to any Person or entity or
any circumstance, is invalid or unenforceable, (i) a suitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision, and
(ii) the remainder of this Agreement and the application of such provision to other Persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the
validity or enforceability of such provision, or the application thereof, in any other jurisdiction. 
 Section 5.09
Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the
Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed
also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance. If any Party has
breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which
the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty, or covenant. 
  

 8 

 Section 5.10 Incorporation of Exhibits. The Exhibits identified in this Agreement are
incorporated herein by reference and made a part hereof. 
 Section 5.11 Submission to Jurisdiction. Each of the Parties
submits to the jurisdiction of a state or federal court sitting in Atlanta, Georgia, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and
determined in any such court. Each Party also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Each of the Parties waives any defense of inconvenient forum to the maintenance of any action
or proceeding so brought and waives any bond, surety, or other security that might be required of any other Party with respect thereto. Each Seller appoints Seller Representative as his or its agent to receive on his or its behalf service of copies
of the summons and complaint and any other process that might be served in the action or proceeding. Any Party may make service on any other Party by sending or delivering a copy of the process (i) to the Buyer or Seller Representative to be
served at the address and in the manner provided for the giving of notices in Section 5.05 above, or (ii) in the case of a Seller (other than the Seller Representative) to be served, in care of the Seller Representative at the address and
in the manner provided for the giving of notices in Section 5.05 above. Nothing in this Section 5.11, however, shall affect the right of any Party to serve legal process in any other manner permitted by law or at equity. Each Party agrees
that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity. 
 Section 5.12 Acknowledgment. Each of the Parties acknowledges that it and its affiliates have retained their own financial, legal and
tax advisors and are not relying on any other Party to the Agreement or such other Party’s advisors for financial, legal or tax advice in connection with the transactions contemplated by this Agreement. 
 [Signature Page Follows] 
  

 9 

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date first written above.

  

			
	Buyer:	 	WELLS REAL ESTATE FUNDS, INC
		
	By:	 	  

		 	Douglas P. Williams
		 	Senior Vice President

  

					
	Seller:	 	WELLS TIMBERLAND OPERATING PARTNERSHIP, L.P.
		
	By:	 	Wells Timberland REIT, Inc.
	Its:	 	General Partner
			
		 	By:	 	  

		 		 	Randall D. Fretz
		 		 	Senior Vice President

  

 10 

 Exhibit A

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