Document:

Amended and Restated Master Purchase Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED 
 MASTER PURCHASE AGREEMENT 
 This AMENDED AND RESTATED MASTER PURCHASE AGREEMENT, dated as of April 8, 2009 (including all exhibits and schedules, this
“Agreement”), is by and among Wells-DFH Timberland Nr. 88 GmbH & Co. KG, a German closed end fund that will elect to be treated as partnership for U.S. tax purposes (the “2008 Fund”), Wells-DFH Materia
GmbH & Co. KG, a German closed end fund that will elect to be treated as partnership for U.S. tax purposes (“Materia”), any other fund that is not a “U.S. person,” as defined under Rule 902(k) of Regulation S
under the Securities Act of 1933, as amended, that subsequently executes a joinder to this Agreement substantially in the form attached hereto as Exhibit A (together with Materia, the “Funds”), Deutsche Fonds Holding AG
(“DFH”), a corporation organized under the laws of Germany, Wells Timberland Management Organization, LLC, a Georgia limited liability company (“Wells TIMO”) and Wells Timberland REIT, Inc., a corporation organized
and existing under the laws of the State of Maryland (the “Company,” and, together with DFH, Wells TIMO and the Funds, the “Parties,” and each a “Party”). 
 WHEREAS, pursuant to the Company’s confidential offering memorandum, dated July 11, 2008, (together with all documents incorporated by
reference therein, as well as all amendments, supplements and exhibits thereto, the “Offering Memorandum”) and the accompanying prospectus, dated December 14, 2007 (together with all amendments, supplements and exhibits
thereto, and any new prospectus included in a post-effective amendment to the registration statement that includes such prospectus, the “Prospectus”), the Company is offering (the “Offering”) to the Funds up to
53,763,441 shares of the Company’s common stock, par value $.01 per share (the “Common Stock”); 
 WHEREAS, the
Company, in its sole discretion, may increase the size of the Offering up to a maximum of 107,526,881 shares of Common Stock to accommodate additional Funds that may become parties to this Agreement from time to time; 
 WHEREAS, pursuant to the terms and conditions applicable to the Offering, as described in the Offering Memorandum, the Prospectus, this Agreement, and
each subscription agreement between the Fund and the Company, substantially in the form attached hereto as Exhibit B (each a “Subscription Agreement”), the Funds desire to subscribe to purchase shares of the Company’s
Common Stock, from time to time, at a price per share of $9.30; and 
 WHEREAS, in making subscriptions for shares of the Company’s
Common Stock, the Funds are relying and will rely upon the representations, warranties, covenants and agreements of the Company and Wells TIMO contained herein and confirmed in each Subscription Agreement, and, in considering and accepting the
Funds’ subscriptions under each Subscription Agreement, the Company is relying and will rely upon the representations, warranties, covenants and agreements of the Funds and DFH contained herein and confirmed in each Subscription Agreement;

 NOW, THEREFORE, in consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto, intending to be legally bound hereby, do hereby agree as follows: 
 1. Subscription.
Each of the Funds may, from time to time, subscribe for shares of the Company’s Common Stock by entering into one or more Subscription Agreements with the Company, which Subscription Agreements shall set forth the number of shares that the
Funds are 

  

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subscribing for (the “Shares”), up to a maximum of 53,763,441 shares in the aggregate, and the aggregate purchase price for such Shares (the
“Purchase Price”). The Company, in its sole discretion, may increase the size of the Offering up to a maximum of 107,526,881 shares to accommodate additional Funds that may become parties to this Agreement from time to time. The
Offering will extend until the earlier to occur of (i) the sale of all of the Shares, or (ii) December 31, 2010. The Parties shall make to each other and confirm the representations and warranties contained herein as of the date of
each Subscription Agreement and as of each related Closing Date (as defined below). In the event of any conflict between the terms of a Subscription Agreement and this Agreement, the terms of the Subscription Agreement shall govern. 
 2. Closings. Each closing (each a “Closing”) and settlement of a Fund’s purchases of shares of the Company’s
Common Stock shall occur on such dates as are mutually agreed upon by the Parties (each a “Closing Date”), and shall occur no later than the third business day following the acceptance of a Subscription Agreement by the Company. At
each Closing, the Company shall confirm to the applicable Fund that the Company’s transfer agent has reflected the Fund’s purchase and ownership of the Shares in the Company’s stock ledger maintained by such transfer agent, against
payment by the Fund of the Purchase Price in good and immediately available funds by wire transfer or check in accordance with the Company’s instructions. 
 3. Representations and Warranties of the Company. 
 As of the date hereof and the date of each
Subscription Agreement with a Fund and each Closing, the Company and Wells TIMO hereby represent, warrant and agree to, and for the benefit of, that Fund as follows: 
 (a) The Offering Memorandum and the Prospectus (including any supplements) do not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. 
 (b) All documents filed by the Company with the United
States Securities and Exchange Commission (the “Commission”) pursuant to Sections 12, 13, 14 or 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and incorporated by reference into the
Offering Memorandum and/or the Prospectus, when they became effective or were filed with the Commission, as the case may be, complied in all material respects with the requirements of the Securities Act of 1933, as amended (the “Securities
Act”), and the rules thereunder or the Exchange Act and the rules thereunder, as applicable. 
 (c) Neither the Company nor any of
its affiliates (as such term is defined in Rule 405 of the Securities Act, “Affiliates”) or any person acting on its or their behalf has engaged in any “directed selling efforts” within the meaning of Rule 902(c) of
Regulation S (“Regulation S”), as promulgated under the Securities Act, with respect to the Shares. 
 (d) None of the
Company or its Affiliates or any person authorized to act on its or their behalf has, directly or indirectly, made any offers or sales of any security, or solicited any offers to buy, any security under circumstances that would require the
registration of the Shares under the Securities Act. 
  

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 (e) No registration of the Shares under the Securities Act is required for the purchase of the Shares by
that Fund in the manner contemplated herein and in the Offering Memorandum and the Prospectus. 
 (f) (i) The Company (x) has been duly
incorporated and is validly existing as a corporation in good standing under the laws of the State of Maryland with full corporate power and authority to own or lease, as the case may be, and to operate its properties and conduct its business as
described in the Offering Memorandum and the Prospectus, and to enter into and perform its obligations under this Agreement and each Subscription Agreement, and (y) is duly qualified to do business as a foreign corporation and is in good
standing under the laws of each jurisdiction which requires such qualification, except where the failure to be so qualified and in good standing would not reasonably be expected to have a material adverse effect on the condition (financial or
otherwise), prospects, earnings, business or properties of the Company and its Subsidiaries (as defined below) taken as a whole, whether or not arising from transactions in the ordinary course of business (a “Material Adverse
Effect”). 
 (ii) Each Subsidiary of the Company listed on Schedule 3(f)(ii) hereto (each a “Subsidiary” and
together, the “Subsidiaries”) has been duly formed and is validly existing as a corporation, business trust, limited liability company or limited partnership, as the case may be, in good standing under the laws of the jurisdiction
in which it is chartered or organized with full power and authority (corporate and other) to own or lease, as the case may be, and to operate its properties and conduct its business as described in the Offering Memorandum and the Prospectus, and is
duly qualified to do business as a foreign corporation, business trust, limited liability company or limited partnership, as the case may be, and is in good standing under the laws of each jurisdiction which requires such qualification, except where
the failure to be so qualified and in good standing could not reasonably be expected to have a Material Adverse Effect. 
 (g) All of the
outstanding shares of capital stock or other ownership interests of each Subsidiary have been duly and validly authorized and issued and are fully paid and nonassessable, and all outstanding shares of capital stock or other ownership interests of
the Subsidiaries are owned by the Company either directly or through wholly owned Subsidiaries free and clear of any perfected security interest or any other security interests, claims, mortgages, pledges, liens, encumbrances or other restrictions
of any kind (collectively, “Liens”), except as set forth on Schedule 3(g) hereto. There are no outstanding options, warrants or other rights to purchase, agreements or other obligations to issue, or rights to convert any
obligations into or exchange any securities or interests for capital stock or other ownership interests of any Subsidiary of the Company. 
 (h) The capital stock of the Company conforms in all material respects to the description thereof contained in the Offering Memorandum and the Prospectus; the outstanding shares of Common Stock have been duly and validly authorized and
issued and are fully paid and nonassessable; the Shares have been duly and validly authorized, and, when issued and delivered to and paid for by the Fund pursuant to this Agreement and each Subscription Agreement, will be fully paid and
nonassessable; the holders of outstanding shares of capital stock of the Company are not entitled to preemptive or other rights to subscribe for the Shares; and, except as set forth in the Offering Memorandum and the Prospectus, no options, warrants
or other rights to purchase, agreements or other obligations to issue, or rights to convert any obligations into or exchange any securities for, shares of Common Stock or ownership interests in the Company are outstanding; and all offers and sales
of Common Stock prior to the date hereof were at all relevant times duly 

  

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registered under the Securities Act or were exempt from the registration requirements of the Securities Act and were duly registered or the subject of an
available exemption from the registration requirements of the applicable state securities or blue sky laws. 
 (i) The statements in the
Offering Memorandum and the Prospectus, when read together with the documents incorporated by reference therein, under the headings “Legal Proceedings,” “Transfer Restrictions,” “Risk Factors—The Shares are subject to a
voting agreement,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources,” insofar as such statements summarize legal matters, agreements, documents or
proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings. The Shares conform in all material respects to the respective statements relating thereto contained in the Offering
Memorandum and the Prospectus. 
 (j) To the Company’s knowledge, there are no material transfer taxes or other similar fees or charges
under federal law or the laws of any state, or any political subdivision thereof, required to be paid by the Company, Wells TIMO or its Subsidiaries in connection with the execution and delivery of this Agreement or the issuance by the Company or
sale and delivery by the Company of the Shares. 
 (k) This Agreement and each applicable Subscription Agreement has been duly authorized,
executed and delivered by the Company and Wells TIMO and constitutes a legally valid and binding obligation of the Company and Wells TIMO, enforceable against the Company and Wells TIMO in accordance with its terms, except to the extent that such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting creditors’ rights and general principles of equity, and except as to rights to indemnity and
contribution thereunder as may be limited by applicable law or policies underlying such law. 
 (l) The Company is not and, after giving
effect to the offering and sale of the Shares and the application of the proceeds thereof as described in the Offering Memorandum and the Prospectus, will not be an “investment company” as defined in the Investment Company Act of 1940, as
amended. 
 (m) No consent, approval, authorization, filing with or order of any court or governmental agency or body is required in
connection with the transactions contemplated herein and in each Subscription Agreement, other than such as will be made or obtained under the Securities Act, and those the absence of which, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect. 
 (n) Neither the issuance and sale of the Shares nor the consummation of any other of the
transactions contemplated herein or in each Subscription Agreement nor the fulfillment of the terms hereof or thereof will conflict with, result in a breach or violation of, or imposition of any lien, charge or encumbrance upon any property or
assets of the Company or any of its Subsidiaries pursuant to, (i) the charter or bylaws of the Company or the organizational or other governing documents of any of its Subsidiaries, (ii) the terms of any indenture, contract, lease,
mortgage, deed of trust, franchise, note, loan agreement or other agreement, obligation, condition, covenant or instrument to which the Company or any of its Subsidiaries is a party or bound or to which its or their property is subject, or
(iii) any statute, law, rule, regulation, judgment, order or decree applicable to the Company or any of its Subsidiaries of any court, regulatory body, administrative 

  

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agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of its Subsidiaries or any of its or their properties,
except, in the case of clauses (ii) or (iii) above, for such conflicts, breaches, violations, liens, charges or encumbrances that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 (o) Except with respect to the registration rights granted to the Funds pursuant to this Agreement and any other similar agreement between
the Company and the Funds, there are no contracts, agreements or understandings between the Company and any person granting such person the right to require the Company to file a registration statement under the Securities Act with respect to any
securities of the Company owned or to be owned by such person or to require the Company to include such securities in any securities being registered pursuant to any other registration statement filed by the Company under the Securities Act. In the
event of a liquidation of the Company, a sale or merger of the Company, a sale of all or substantially all of the Company’s assets, or the listing of the Company’s Common Stock on a national securities exchange, the Shares will have the
same rights, privileges and preferences as those rights, privileges and preferences of the shares of Common Stock purchased by the Company’s other stockholders, except (i) as described in this Agreement; (ii) as described in the
Offering Memorandum; (iii) with respect to any limitations as may be imposed under German law; and (iv) with respect to any limitations contained in the Funds’ organizational documents. 
 (p) The financial statements and schedules of the Company, including the notes thereto, included or incorporated by reference in the Offering Memorandum
and the Prospectus (including any supplements) present fairly in all material respects the financial condition, results of operations and cash flows of the Company as of the dates and for the periods indicated, comply as to form in all material
respects with the applicable accounting requirements of the Securities Act and have been prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods involved (except as otherwise noted
therein). Such financial statements and schedules fairly present in all material respects, on the basis stated therein, the information included therein. 
 (q) No action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries or its or their property is pending or, to the best
knowledge of the Company, threatened that could reasonably be expected to have (i) a material adverse effect on the performance of this Agreement or any Subscription Agreement or the consummation of any of the transactions contemplated hereby
or thereby or (ii) a Material Adverse Effect, except as set forth in or contemplated in the Offering Memorandum and the Prospectus. 
 (r) (i) The Company or its Subsidiaries have fee simple title or insurable leasehold title to all of the properties described in the Offering Memorandum and the Prospectus as owned or leased by them and the improvements (exclusive of
improvements owned by tenants) located thereon (the “Properties” and individually, a “Property”), in each case, free and clear of all liens, encumbrances, claims, security interests, restrictions and defects, except
those that are disclosed in the Offering Memorandum and the Prospectus or that do not materially and adversely affect the value of such Property and do not materially and adversely interfere with the use made and proposed to be made of such Property
by the Company and any Subsidiary; (ii) except as otherwise set forth in the Offering Memorandum and the Prospectus, the mortgages and deeds of trust encumbering the Properties described in the Offering Memorandum and the Prospectus are not
convertible into debt or equity securities of the Company and such mortgages and deeds of trust are not cross-defaulted or cross-collateralized to any property not owned directly or indirectly by 

  

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the Company or its Subsidiaries; (iii) neither the Company nor any of its Subsidiaries is in default under any of the mortgages or deeds of trust, nor
has an event occurred which with the delivery of notice and passing of a cure period would become a default under any mortgage or deed of trust that could reasonably be expected to have a Material Adverse Effect; (iv) neither the Company nor
any of its Subsidiaries has received from any governmental authority any written notice of any condemnation of or zoning change affecting the Properties or any part thereof, and none of the Company or any Subsidiary knows of any such condemnation or
zoning change which is threatened and which, if consummated, would reasonably be expected to have a Material Adverse Effect; (v) each of the Properties complies with all applicable codes, laws and regulations (including without limitation,
building and zoning codes, laws and regulations and laws relating to access to the Properties), except if and to the extent disclosed in the Offering Memorandum and the Prospectus and except for such failures to comply that would not individually or
in the aggregate reasonably be expected to have a Material Adverse Effect; (vi) a Subsidiary holds a valid owner’s policy of title insurance for each Property insuring such Subsidiary as the fee title owner or the leasehold titleholder,
and the Company and/or its Subsidiaries has the benefit of such title insurance policies; and (vii) neither the Company nor any of its Subsidiaries is in default under any ground lease, nor has an event occurred which with delivery of notice
and passing of a cure period would become a default under any ground lease, except for such defaults or events that could not reasonably be expected to have a Material Adverse Effect. 
 (s) Neither the Company nor any Subsidiary is in violation or default of (i) any provision of its charter, bylaws or other organizational or
governing documents; (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which it is a party or bound or to which its
property is subject; or (iii) any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of
its Subsidiaries or any of its properties, as applicable, except, in the case of clauses (ii) or (iii) above, for such violations or defaults that, individually or in the aggregate, would not reasonably be expected to have a Material
Adverse Effect. 
 (t) Deloitte & Touche LLP, who have certified the Company’s financial statements and supporting schedules
included in the Offering Memorandum and the Prospectus, and any document that is incorporated by reference therein, and delivered their reports with respect to the audited financial statements and schedules included in the Offering Memorandum and
the Prospectus, are independent registered public accountants within the meaning of the Securities Act and the applicable published rules and regulations thereunder. 
 (u) The Company and each of its Subsidiaries has filed all foreign, federal, state and local tax returns that are required to be filed or has requested extensions thereof, except in any case in which the failure so to
file would not have a Material Adverse Effect, and except as disclosed in the Offering Memorandum and the Prospectus, and has paid all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that
any of the foregoing is due and payable, except for any such tax, assessment, fine or penalty that is currently being contested in good faith or as would not have a Material Adverse Effect. 
 (v) No material labor problem or dispute with the employees of the Company or any of its Subsidiaries exists or, to the Company’s knowledge, is
threatened or imminent. 
  

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 (w) The Company and each of its Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are, in the Company’s reasonable judgment, prudent and customary in the businesses in which they are engaged; all policies of insurance and fidelity or surety bonds insuring
the Company or any of its Subsidiaries or their respective businesses, assets, employees, officers and directors are in full force and effect; the Company and its Subsidiaries are in compliance with the terms of such policies and instruments in all
material respects; there are no claims by the Company or any of its Subsidiaries under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; and neither the Company
nor any such Subsidiary has been refused any insurance coverage sought or applied for; and neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 
 (x) Except with respect to restrictive covenants contained in certain of the Company’s financing arrangements as set forth on Schedule 3(x) to this Agreement, no Subsidiary of the Company is currently
prohibited, directly or indirectly, from paying any dividends or distributions to the Company, from making any other distribution on such Subsidiary’s capital stock or equity interests, from repaying to the Company any loans or advances to such
Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company or any other Subsidiary of the Company. 
 (y) The Company and its Subsidiaries (i) possess all valid and current licenses, certificates, permits and other authorizations issued by the appropriate federal or state regulatory authorities necessary to
conduct their respective businesses, except those the absence of which would not have a Material Adverse Effect; and (ii) have not received any written notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit, which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect. 
 (z) The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to
assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. Except as disclosed in the Offering Memorandum and the Prospectus, since the date of the Company’s most recent audited balance sheet, there has been (x) no material weakness in the Company’s internal
control over financial reporting (whether or not remediated) and (y) no change in the Company’s internal control over financial reporting that has materially and adversely affected, or is reasonably likely to materially and adversely
affect, the Company’s internal control over financial reporting. 
 (aa) The Company and its Subsidiaries are (i) in compliance
with any and all applicable federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”); (ii) have received and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) have not received notice of any
actual or potential liability under any 

  

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Environmental Laws, except, in the cases of each of clause (i) through (iii) above, where such non-compliance with Environmental Laws, failure to
receive required permits, licenses or other approvals, or liability would not, individually or in the aggregate, have a Material Adverse Effect, and except as disclosed in the Offering Memorandum and the Prospectus. Neither the Company nor any of
the Subsidiaries has, to its knowledge, been named as a “potentially responsible party” under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended. Except as otherwise set forth in the Offering
Memorandum and the Prospectus, to the knowledge of the Company, there have been no and are no (x) aboveground or underground storage tanks; (y) polychlorinated biphenyls (“PCBs”) or PCB-containing equipment;
(z) asbestos or asbestos containing materials; (xx) lead based paints; (yy) mold or other airborne contaminants; or (zz) dry-cleaning facilities in, on, under, or about any property owned by the Company or its Subsidiaries.

 (bb) In the ordinary course of its business, the Company periodically reviews the effect of Environmental Laws on the business, operations
and properties of the Company and its Subsidiaries, in the course of which it identifies and evaluates associated costs and liabilities (including, without limitation, any capital or operating expenditures required for clean-up, closure of
properties or compliance with Environmental Laws, or any permit, license or approval, or any related constraints on operating activities and any potential liabilities to third parties). On the basis of such review, the Company has reasonably
concluded that such associated costs and liabilities would not, singly or in the aggregate, have a Material Adverse Effect, except as disclosed in the Offering Memorandum and the Prospectus. 
 (cc) The Company has no “welfare plans” or “pension plans” within the meaning of Sections 3(1) and 3(2) of ERISA, respectively. Each
“employee benefit plan” (within the meaning of Section 3(3) of ERISA) established or maintained by the Company and/or one or more of its Subsidiaries is in compliance with the currently applicable provisions of ERISA, except as could
not reasonably be expected to have a Material Adverse Effect. 
 (dd) There is and has been no failure on the part of the Company and any of
the Company’s directors or officers, in their capacities as such, to comply with any applicable provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley
Act”) including, without limitation, Section 402 related to loans, except such failures that could not reasonably be expected to have a Material Adverse Effect. 
 (ee) Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the
Company or any of its Subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder
(“FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or
other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign
political office, in contravention of the FCPA and the Company, its Subsidiaries and, to the knowledge of the Company, its affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and
procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith, except for any such violations of the FCPA that could not reasonably be expected to have a Material Adverse Effect. 

 

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 (ff) The operations of the Company and its Subsidiaries are and have been conducted at all times in
compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and
any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened, except those violations or actions,
suits or proceedings that could not reasonably be expected to have a Material Adverse Effect. 
 (gg) Neither the Company nor any of its
Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other
person or entity, which the Company knows to be for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC. 
 (hh) The Company and its Subsidiaries have good and marketable title to all personal property owned by them, free and clear of all encumbrances and defects; and all personal property held under lease by the Company or
any Subsidiary are held by it under valid, subsisting and enforceable leases, in each case, with such exceptions which could not reasonably be expected to have a Material Adverse Effect. 
 (ii) The statistical and market-related data included in the Offering Memorandum and the Prospectus are based on or derived from sources that the Company
believes to be reliable and accurate. 
 (jj) Except as described in the Offering Memorandum and the Prospectus, as of the date hereof, with
respect to stock options (the “Stock Options”) granted pursuant to the stock-based compensation plans of the Company and its Subsidiaries (the “Company Stock Plans”), (i) each Stock Option designated by the
Company at the time of grant as an “incentive stock option” under Section 422 of the Code, so qualifies, (ii) each grant of a Stock Option was duly authorized no later than the date on which the grant of such Stock Option was by
its terms to be effective (the “Grant Date”) by all necessary corporate action, including, as applicable, approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required
stockholder approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any) was duly executed and delivered by each party thereto, (iii) each such grant was made in accordance with the terms
of the Company Stock Plans, the Exchange Act and all other applicable laws and regulatory rules or requirements, (iv) the per share exercise price of each Stock Option was equal to or greater than the fair market value of a share of Common
Stock on the applicable Grant Date and (v) each such grant was properly accounted for in accordance with GAAP in the financial statements (including the related notes) of the Company and disclosed in the Company’s filings with the
Commission in accordance with the Exchange Act and all other applicable laws, except such deviations from any of clauses (i) through (v) above as would not reasonable be expected to have a Material Adverse Effect. 
  

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 4. Representations and Warranties of the Funds. 
 Each Fund hereby represents, warrants and agrees to, and for the benefit of the Company as of the date hereof or the date the Fund becomes a party to
this Agreement, and as of the date of each Subscription Agreement and each Closing that such Fund is a party, as follows: 
 (a) The Fund
acknowledges that it is not purchasing the Shares pursuant to the Company’s registration statement on Form S-11 (File No. 333-129651) that the Company filed with the Commission, relating to the Company’s concurrent public offering of
up to 85,000,000 shares of Common Stock, and except with respect to the registration rights granted to the Fund pursuant to this Agreement and any other similar agreement between the Company and the Fund, that the Company presently has no intention
to register the Shares under the Securities Act or the securities laws of any state or foreign jurisdiction. The Company is making this offer and sale of the Shares in reliance upon Regulation S. The Fund also acknowledges that the Company is
availing itself of this exemption in reliance, in part, upon the Fund’s representations, warranties and agreements contained in this Agreement. 
 (b) The Fund has received a copy of the Offering Memorandum and the Prospectus and has considered carefully the information set forth therein, including, without limitation, the information set forth under the
captions “Important Differences Between this Offering and Our Public Offering,” “Transfer Restrictions” and “Risk Factors.” The Fund acknowledges that, prior to executing this Agreement, it has had the opportunity to
ask questions of and receive answers or obtain additional information from a representative of the Company concerning the financial and other affairs of the Company and the terms and conditions of the Offering, and, to the extent it believes
necessary in light of its knowledge of the Company’s affairs, it has asked these questions and received satisfactory answers. The Fund further acknowledges that it has been provided with such due diligence and other materials as it has
requested from the Company for purposes of making its investment decision. 
 (c) In considering an investment in the Shares, the Fund has
retained and consulted, or has had the opportunity to retain and consult, with its own legal counsel, accountants, tax advisors, investment advisors and other third party professionals, and is not relying upon the Company, its affiliates or their
respective officers, directors or third party representatives in making an investment decision with respect to the purchase of the Shares. 
 (d) The Fund is not a “U.S. person,” as defined under Rule 902(k) of Regulation S, nor, to the best of its knowledge, is it acquiring the Shares for the account or benefit of any U.S. person. 
 (e) The Fund understands that, pursuant to U.S. securities laws, it may not (a) sell, transfer or dispose of the Shares to any person or entity,
other than (i) outside the United States in an offshore transaction in accordance with Regulation S under the Securities Act, (ii) pursuant to another exemption from registration under the Securities Act (for example, pursuant to a
transaction by any person other than an issuer, underwriter, or dealer, as contemplated by Section 4(1) of the Securities Act, or pursuant to the safe harbor provisions for such resales provided by Rule 144 (as defined below)) or
(iii) pursuant to an effective registration statement under the Securities Act, or (b) engage in any hedging or other transactions involving the Shares unless in compliance with the Securities Act. 
 (f) The Fund acknowledges that the sale of the Shares is being made pursuant to the Offering Memorandum and the accompanying Prospectus. The Fund has
received and carefully read the Offering Memorandum, the Prospectus and this Agreement and, to the extent it believes 

  

 10 

 
necessary, has discussed with its counsel the representations, warranties, and agreements that it makes by signing this Agreement and the limitations that
apply to its resale of the Shares. 
 (g) The Fund has no present intention of reselling the Shares, or any direct or indirect interest
therein, to any parties who are U.S. persons, or of effecting a “distribution” (as such term is defined in the Securities Act) of the Shares in violation of U.S. securities laws. The Fund’s sale of ownership interests in the Fund to
third parties has been made in a manner consistent with Regulation S. 
 (h) The Fund is familiar with the business in which the Company is
or will be engaged, and, based upon its knowledge and experience in financial and business matters, it is (i) familiar with the investments of the type that it is undertaking to purchase in this Agreement; (ii) fully aware of the problems
and risks involved in making an investment of this type; and (iii) capable of evaluating the merits and risks of this investment. 
 (i)
The Fund can financially bear the economic risk of this investment, including the ability to hold the Shares for an indefinite period or to bear a complete loss of this investment. 
 (j) The Fund is aware of the Company’s fee structure that is applicable to the proceeds received by the Company in respect of the Fund’s
purchase of the Shares, as contemplated by the Offering Memorandum, the Prospectus and the Amended and Restated Advisory Agreement, dated and effective as of the date of the Fund’s initial purchase of Shares from the Company, by and between the
Company, Wells Timberland Operating Partnership, L.P., and Wells TIMO. 
 (k) The Fund understands as follows: 
 (1) The Fund may not be able to resell the Shares under Rule 144; if the Fund were able to resell the Shares under Rule 144, the Fund
likely would be able to resell the Shares in limited amounts and in accordance with the other terms and conditions of Rule 144; and in connection with any resale of the Shares by the Fund that Rule 144 does not permit, the Fund must comply with some
other registration exemption. 
 (2) Except with respect to the registration rights granted to the Fund pursuant to this
Agreement and any other similar agreements between the Company and the Fund, the Company has no obligation to register the Shares or to comply with the conditions of Rule 144 or to take any other action necessary in order to make available any
exemption for the resale of the Shares without registration. 
 (3) The Company has entered into an agreement with its
transfer agent, Wells Capital, Inc., pursuant to which the Company has given stop transfer instructions to the transfer agent to note on the Company’s appropriate records words to the effect that the Shares may not be transferred out of the
Fund’s name unless (x) the proposed transferee completes and delivers to the Fund the Questionnaire attached hereto as Exhibit C, (y) the proposed transferee enters into an agreement with the Company containing substantially
the same representations, warranties and covenants contained in this Agreement, and (z) the proposed transfer of Shares otherwise complies with applicable securities laws, and those laws applicable to the Company’s ability to elect and
maintain REIT status. 
  

 11 

 (4) The Company will not issue physical certificates for the Shares. Instead, the Shares
will be recorded on the books and records of the Company. The form of Notice to Stockholders of Issuance of Uncertificated Shares of Common Stock, as mandated by Maryland General Corporation Law, is attached hereto as Exhibit D. 

(l) The Fund has reviewed the Company’s Charter and understands that Section 6.1 of the Charter imposes various restrictions on the
ownership of shares of the Company’s capital stock. (Capitalized terms used but not defined in this paragraph (n) of this Agreement have the meanings ascribed to them in the Charter). Pursuant to Section 6.1 of the Charter,
(a) no Person shall Beneficially Own or Constructively Own Shares in excess of 9.8% in value of the outstanding Shares, (b) no Person shall Beneficially Own or Constructively Own more than 9.8% in value or number, whichever is more
restrictive, of the outstanding Common Shares and (c) no Excepted Holder shall Beneficially Own or Constructively Own Shares in excess of the Excepted Holder Limit for such Excepted Holder (the “Ownership Limits”). The Fund
understands the Ownership Limits, and the definitions of Beneficial Ownership and Constructive Ownership, including, without limitation, the references to various Sections of the U.S. Internal Revenue Code under which Shares owned or treated as
owned by one Person may be attributed to another Person. The Fund understands that the number of Shares that it is agreeing to purchase in this Agreement would, at this time, exceed the Ownership Limits. In order to induce the Company’s Board
of Directors to waive the application of the Ownership Limits to the Fund’s purchase and ownership of the Shares, and to grant the Fund an Excepted Holder Limit permitting the Fund to purchase up to 53,763,441 Shares, a form of which is
attached hereto as Exhibit E, the Fund hereby makes the following representations and covenants to, and for the benefit of, the Company: 
 (1) No individual within the meaning of Section 542(a)(2) of the Code as modified by Section 856(h)(3)(A) will at any time Beneficially Own or Constructively Own more than 9.8% of the equity interests in the
Fund. The Fund will not permit transfers of equity interests in the Fund (or issue additional interests in the Fund or redeem interests in the Fund) that result in any individual within the meaning of Section 542(a)(2) of the Code as modified
by Section 856(h)(3)(A) Beneficially Owning or Constructively Owning more than 9.8% of the equity interests in the Fund. 
 (2) The Fund does not and will not actually or Constructively Own equity interests, or rights to acquire equity interests, in any Person other than the Company. 
 (3) In the event of an audit or investigation of the Company’s qualification as a REIT for U.S. federal income tax purposes, the Fund
will make its ownership records available to the Company upon reasonable request by the Company and will, if requested, send letters to record holders of equity interests in the Fund requesting information on the Beneficial Ownership and
Constructive Ownership of such interests. Upon reasonable request from the Company from time to time, the Fund will confirm that all of the representations in this paragraph (l) remain accurate and that it has complied with the covenants in
this paragraph (l). 
 (4) The Fund acknowledges that the representations and covenants in this paragraph (l) will
continue as long as the Fund owns Shares in excess of the Ownership Limit. The Fund acknowledges that, if any of the representations in this paragraph (l) are or become inaccurate, or if there is any violation of any of the covenants in this
paragraph (l), then the Excepted Holder Limit granted to the Fund will not apply, with the consequences provided for in the Charter. 
  

 12 

 (5) The Fund understands that Persons who Beneficially Own or Constructively Own Shares
other than through the Fund remain subject to the Ownership Limit. 
 (m) The Fund represents and warrants that none of its management,
directors, affiliates or, to the knowledge of the Fund (including its general partner, managing limited partner and their respective principals), owners of interests in the Fund, is a person or entity on the U.S. Specially Designated Nationals List
or otherwise subject to sanctions under regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). 
 (n) The Fund understands that the Company may and will rely upon the representations, warranties, covenants and agreements set forth in this Agreement in determining whether to sell the Shares to the Fund, and that
the Company is justified in such reliance. Neither the Fund nor DFH is aware of any fact or circumstance that would render any of the representations, warranties, covenants and agreements contained in this Agreement to be incorrect or inaccurate, or
to form a basis for the Company not to rely thereupon. 
 5. Representations and Warranties of DFH. DFH represents and warrants
that it is in compliance with that certain confidentiality agreement, dated as of April 8, 2009, by and between DFH and the Company, with respect to Materia and acknowledges that, to the extent any additional Funds seek to become parties to
this Agreement, it may be required to enter into similar confidentiality agreements with respect to such Funds. 
 6. Conditions to
Closing of the Funds. 
 The obligation of each of the Funds to consummate the purchase of the Shares and the other transactions
contemplated by this Agreement and each Subscription Agreement is subject to the fulfillment or written waiver by the applicable Fund prior to Closing of each of the following conditions: 
 (a) Each representation and warranty of the Company and Wells TIMO set forth in this Agreement shall be true and correct in all respects as of the date
of this Agreement, as of the date of each Subscription Agreement and each Closing Date as though made on and as of each such date (except that those representations and warranties that by their terms speak as of the date of this Agreement or some
other date shall be true and correct as of such date), and the Fund shall have received a certificate from the Company and Wells TIMO, dated as of the Closing Date, to such effect. The certificate shall be signed by an authorized officer of the
Company and Wells TIMO. 
 (b) The Company and Wells TIMO shall have performed in all material respects each obligation required to be
performed by them under this Agreement and each Subscription Agreement at or prior to each Closing, and the Fund shall have received a certificate, dated as of the Closing Date, signed by an authorized officer of the Company and Wells TIMO to such
effect. 
 (c) The Company shall have provided a certificate to the Fund, executed by an authorized officer of the Company, certifying that
the Company’s Board of Directors has granted to the Fund an exemption from the ownership limitation contained in Section 6.1 of the Company’s Charter. 
  

 13 

 (d) On or before its initial Closing, each Fund shall have received the (i) written opinion of
Alston & Bird LLP, counsel to the Company, in form and substance reasonably satisfactory to the Fund, as to the matters set forth on Exhibit F hereto, (ii) the written tax opinion of Alston & Bird LLP, counsel to the
Company, in form and substance reasonably satisfactory to the Fund, as to the matters set forth on Exhibit G hereto, and (iii) the written opinion of Venable LLP, Maryland counsel to the Company, in form and substance reasonably
satisfactory to the Fund, as to the matters set forth on Exhibit H hereto. Each such opinion shall be confirmed by the party rendering such opinion as of each Closing Date. 
 7. Conditions to Closing of the Company. 
 The obligation of the Company to consummate the sale of the Shares and the other transactions contemplated by this Agreement and each Subscription Agreement is subject to the fulfillment or written waiver by the
Company prior to Closing of each of the following conditions: 
 (a) Each representation and warranty of the applicable Fund and DFH set
forth in this Agreement shall be true and correct in all respects as of the date of this Agreement, as of the date such Fund becomes a party to this Agreement, as of the date of each Subscription Agreement and as of each Closing Date as though made
on and as of each such date (except that those representations and warranties that by their terms speak as of the date of this Agreement or some other date shall be true and correct as of such date), and the Company shall have received a certificate
from each of the Fund and DFH, dated the Closing Date, to such effect. The Fund certificates shall be signed on behalf of each Fund by authorized officers of such Fund’s General Partner, and the certificate of DFH shall be signed by authorized
officers of DFH. 
 (b) Each of the Funds and DFH shall have performed in all material respects each obligation required to be performed by
them under this Agreement and each Subscription Agreement at or prior to each Closing, and the Company shall have received a certificate, dated as of each Closing Date, from each Fund purchasing Shares and DFH to such effect. The Fund certificate
shall be signed on behalf of the Fund by authorized officers of such Fund’s General Partner, and the certificate of DFH shall be signed by authorized officers of DFH. 
 (c) Each of the Funds shall have executed and delivered the form of irrevocable proxy attached hereto as Exhibit I to the Company on or prior to
the first Closing Date. 
 8. Initial and Continuing Obligations of the Funds. 
 (a) The Funds shall provide certain compliance, recordkeeping and other administrative services (the “Services”) to Wells TIMO in
connection with the Offering. The Services shall include the following: 
 (1) Each of the Funds agrees to collect from each
equity owner of that Fund (each an “Equity Owner” and, collectively, the “Equity Owners”) certain information with respect to such Equity Owner as set forth on the Regulatory Compliance Requirements Questionnaire
(the “Questionnaire”), a form of which is attached hereto as Exhibit C. Each Fund shall deliver the Questionnaires to Wells TIMO at or within 10 business days after the Closing; 
  

 14 

 (2) Each of the Funds shall deliver to Wells TIMO within 10 business days after the
execution of this Agreement an Initial Regulatory Compliance Statement, a form of which is attached hereto as Exhibit J; 
 (3) Each of the Funds shall deliver to Wells TIMO, within 15 business days after
the end of each calendar quarter ending on March 31st, June 30th, September 30th, and December 31st of each year, commencing on the last day of the quarter in which the Fund purchased Shares, a Quarterly Compliance Statement, a form of which is attached hereto as Exhibit K;

 (4) Each of the Funds shall deliver to Wells TIMO, on an annual
basis, and not later than April 1st of each year, an Annual Compliance Statement, a form of which is attached hereto as Exhibit L.

 (5) In addition to the services set forth in (i) through (iv) above, to the extent that the Company requires
additional information regarding the Funds or their Equity Owners, each Fund shall, upon Wells TIMO’s request, use its commercially reasonable efforts to promptly assist Wells TIMO in complying with all applicable United States laws relating to
the Fund’s purchase, holding or disposal of the Shares, by delivering to Wells TIMO and subject to any limitations imposed on DFH or the Fund by German or European Union laws, by assuring that Wells TIMO is allowed to use for any legal purpose,
any information relating to the Fund or its Equity Owners that may be required by Wells TIMO in order to complete and timely file any reports required by the U.S. Department of Commerce pursuant to the International Investment and Trade Services
Survey Act (“IITSSA”), the U.S. Department of Agriculture pursuant to the Agricultural Foreign Investment Disclosure Act (“AFIDA”) or any other applicable federal or state reporting or monitoring program in
existence. In consideration for any additional requests made pursuant to this Section 8(a)(v), Wells TIMO shall reimburse the Funds or DFH, as the case may be, their actual out of pocket expenses. 
 (b) Each of the Funds agrees that it will not issue shares of the Funds to any prospective equity owner identified on the U.S. Specially Designated
Nationals List as administered by the U.S. Department of the Treasury’s Office of Foreign Asset Control (“OFAC”), as amended from time to time, or is otherwise subject to country-specific embargo or sanctions under any
regulations administered by OFAC, including, but not limited to, OFAC sanctions against Cuba, Iran, Syria, North Korea, Myanmar (formerly known as Burma) and Sudan. 
 9. Covenants of the Funds. 
 (a) Voting Agreement. As a condition to purchasing the
Shares in the Offering, each Fund agrees to the following voting agreement in respect of the Shares: 
 (1) For so long as the
Funds collectively own 50.0% or more of the Company’s total outstanding shares of Common Stock, the Company will vote all of the Funds’ Shares in a manner that supports the vote cast by the Company’s other stockholders. Specifically,
the Company will vote all of the Funds’ Shares for or against any matter upon which a stockholder vote is required in proportion to the number of votes cast for or against such matter by the Company’s other stockholders. 
  

 15 

 (2) During any period beginning on the date when the Funds collectively own less than
50.0%, but greater than or equal to 30% of the Company’s total outstanding shares of Common Stock (each such date, a “Minority Ownership Date”), and ending on the date that is the earlier of (1) the date when the Funds
collectively own less than 30.0% of the Company’s total outstanding shares of Common Stock, or (2) the date that is the three year anniversary of the Minority Ownership Date (such date, the “Termination Date”), the Company
will continue to vote all of the Fund’s Shares in a manner that supports the vote cast by the Company’s other stockholders in respect of the following matters: 
 a. the election of directors to the Company’s Board of Directors; 
 b. the ratification of the Company’s independent auditors; 
 c. any proposed amendment to the Company’s Charter that is not material to the Funds’ interests as a stockholder of the Company
and/or that is necessary or appropriate to ensure that the Company’s Charter complies with the regulatory requirements or comments of the Commission, the Financial Industry Regulatory Authority, any of the States or other jurisdictions in which
the Company sells, or seeks to sell, any of its securities, or the applicable policies and guidelines of the North American Securities Administration Association (“NASAA”) (including, without limitation, the NASAA Statement of
Policy Regarding Real Estate Investment Trusts); and 
 d. any other matters the outcome of which could not reasonably be
expected to have a material and adverse effect on the Funds’ interests as stockholders of the Company. With respect to all other matters, the Funds shall be entitled to freely vote their Shares; 
 (3) This voting agreement will terminate upon the earlier to occur of (1) the Termination Date, or (2) July 31, 2013.

 (4) This voting agreement is coupled with an interest (i.e. the agreements, relationship, and financial interests in the
transactions, contemplated by the Offering Memorandum, the Prospectus. this Agreement and each Subscription Agreement) and an irrevocable proxy, which is attached hereto as Exhibit I, and which must also be signed by each Fund in order for
the Company to properly consider and, if the Company desires, accept, a Subscription Agreement. 
 (b) Standstill. Each of the Funds
covenants and agrees that, for so long as the Funds collectively own Shares that represent 30% or more of total issued and outstanding shares of the Company’s Common Stock, and unless such shall have been specifically invited in writing by the
Company, neither the Funds (including their general partner, managing limited partner and their respective principals) nor any of their directors or officers will in any manner, directly or indirectly, (a) effect or seek, offer or propose
(whether publicly or otherwise) to effect or cause any other person to effect or seek, offer or propose (whether publicly or otherwise) to effect (i) any acquisition of any securities (or beneficial ownership thereof) or assets of the Company
or any of its Subsidiaries, (ii) any tender or exchange offer, merger or other business combination involving the Company or any of its Subsidiaries, (iii) any recapitalization, restructuring, liquidation, dissolution or other
extraordinary transaction with respect to the Company or any of 

  

 16 

 
its Subsidiaries, or (iv) any “solicitation” of “proxies” (as such terms are used in the proxy rules of the Commission) or consents
to vote any voting securities of the Company, (b) form or join in a “group” (as defined under the Exchange Act), (c) otherwise act, alone or in concert with others, to seek to control or influence the management, Board of
Directors or policies of the Company, (d) take any action which might force the Company to make a public announcement regarding any of the types of matters set forth in (a) above, or (e) enter into any discussions or arrangements with
any third party with respect to any of the foregoing. Each Fund also agrees during such period not to request the Company (or its directors, officers, employees, advisors or agents), directly or indirectly, to amend or waive any provision of this
paragraph (c) (including this sentence). Notwithstanding the foregoing, this Section 9(b) shall not prohibit either of the Funds from passively participating in any of the events set forth in (a) though (e) above, so long as
(i) the Fund is not in any way involved in initiating or soliciting other commitments in support of any such events, and (ii) the Fund’s activities with respect thereto are limited solely to considering the proposed action and
electing to participate or not participate in such action. 
 (c) Prior to making available to prospective investors in the Funds any
offering materials (whether in printed, electronic or other format, “Offering Materials”), the Funds shall first obtain the Company’s express approval of such Offering Materials, as well as any amendments thereof or supplements
thereto; provided, however, that the Company’s approval shall not be unreasonably withheld, and shall be focused solely on compliance with the Commission’s Regulation FD; provided further, that the Funds shall be permitted to
use all or any part of the Offering Memorandum in the preparation of the Funds’ Offering Materials. 
 10. Covenants of the
Company. 
 (a) The Company hereby agrees and covenants that it shall use commercially reasonable efforts to cause the Company to be
organized and operated in a manner so that the Company will qualify to be taxed as a REIT for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2009. 
 (b) The Company hereby agrees and covenants that it shall, to the extent necessary, grant an Excepted Holder Limit to any transferee of either of the
Funds’ Shares, provided that such transferee makes the representations required pursuant to Section 6.1.7(a) of the Charter. 
 (c)
The Company, or Wells TIMO on the Company’s behalf, shall pay to DFH a distribution fee at each Closing in consideration for procuring the Funds and indirectly the Equity Owners as investors in connection with this Offering equal to 1% of the
Purchase Price. 
 (d) In the event of any liquidation or dissolution of the Company, any sale, exchange or disposition of all or
substantially all of the Company’s assets in a single transaction or a series of transactions, a merger of the Company with or into any other person, or any listing of the Company’s Common Stock on any nationally or internationally
recognized securities exchange, the Company and TIMO hereby covenant to use their reasonable best efforts to take such actions as necessary, including (x) registering of the resale of the Shares with the Commission and all other securities
commissions or similar bodies and (y) publicly disseminating any material non-public information previously provided to DFH that could prevent the Funds from being able to dispose of the Shares, in order to provide the holders of the Shares
with the same rights, privileges and preferences of the shares of Common Stock purchased by the Company’s other stockholders, except (i) with respect to any limitations as may be imposed on either of the Funds under the internal laws of
Germany and (ii) with respect to any limitations contained in either of 

  

 17 

 
the Funds’ organizational documents. The Company covenants and agrees that it shall bear the expenses in connection with registering the resale of the
Shares with the Commission. 
 11. Indemnification. 
 (a) The Company and Wells TIMO, jointly and severally, agree to indemnify, defend and hold harmless the Funds and their directors and officers and any
person who controls the Funds, from and against any loss, expense, liability or claim (including the reasonable cost of investigation) which, jointly or severally, the Funds or any such controlling person may incur under the Securities Act, the
Exchange Act, Regulation FD, or otherwise, insofar as such loss, expense, liability or claim arises out of, results from, or is based upon, either directly or indirectly, (i) any breach of the representations, warranties or covenants by the
Company or Wells TIMO set forth herein, (ii) any untrue statement or alleged untrue statement of a material fact contained in the Offering Memorandum or Prospectus (or any amendment or supplement thereto by the Company and Wells TIMO), or any
omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading or (iii) any violation or alleged
violation of Regulation FD by the Company, Wells TIMO or the Funds or any of their respective affiliates relating to or arising out of the Offering or the public offering contemplated by the Prospectus; provided, however, that this
indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of (x) any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company or Wells TIMO by the Funds or their representatives, or (y) the willful misconduct or gross negligence of the Funds. 
 12. Miscellaneous. 
 (a) Survival of Representations and Warranties. The
representations and warranties of the Company and each of the Funds contained in this Agreement and each Subscription Agreement will survive the respective Closing until the later of the third anniversary of such Closing or the expiration of the
applicable statute of limitations. Each covenant hereunder shall survive in accordance with its terms. 
 (b) Governing Law. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD FOR THE CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK OR ANY COURT OF THE STATE OF NEW YORK LOCATED IN THE COUNTY OF NEW YORK
IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING IN CONNECTION WITH THIS AGREEMENT AND EACH APPLICABLE SUBSCRIPTION AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, AND AGREES THAT ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE
BROUGHT ONLY IN SUCH COURT (AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS OR ANY OTHER OBJECTION TO VENUE THEREIN); PROVIDED, HOWEVER, THAT SUCH CONSENT TO JURISDICTION IS SOLELY FOR THE PURPOSE
REFERRED TO IN THIS SECTION 12(b) AND SHALL NOT BE DEEMED TO BE A GENERAL SUBMISSION TO THE JURISDICTION OF SAID COURTS OR IN THE STATE OF NEW 

  

 18 

 
YORK OTHER THAN FOR SUCH PURPOSE. EACH PARTY HEREBY (ON ITS BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS
AFFILIATES) WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) IN ANY WAY ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE COMPANY AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT IN ANY SUCH COURT SHALL BE CONCLUSIVE AND BINDING UPON THE COMPANY AND MAY BE ENFORCED IN ANY OTHER COURTS IN THE JURISDICTION OF WHICH THE COMPANY IS OR MAY BE SUBJECT, BY SUIT UPON SUCH JUDGMENT.
Any and all process may be served in any action, suit or proceeding arising in connection with this Agreement by complying with the provisions of Section 12(c). Such service of process shall have the same effect as if the party being served
were a resident in the State of New York and had been lawfully served with such process in such jurisdiction. The parties hereby waive all claims of error by reason of such service. Nothing herein shall affect the right of any party to service
process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against the other in any other jurisdiction to enforce judgments or rulings of the aforementioned courts. 
 (c) Notice. All notices, requests and other communications under this Agreement must be in writing and will be deemed to have been duly given upon
receipt to the Parties at the following addresses or facsimiles (or at such other address or facsimile for a party as shall be specified by the notice): 
 If to the Company: 
 Wells Timberland REIT, Inc. 
 6200 The Corners Parkway 
 Norcross, Georgia 30092-3365 
 Attention: Kevin D. Race 
 Facsimile: 1-404-705-2333 
 With a copy (which shall not constitute notice) to: 
 Alston & Bird LLP 

One Atlantic Center 
 1201 W. Peachtree Street 
 Atlanta, Georgia 30309-3424 
 Attention: Mark C. Kanaly 
 Facsimile: 1-404-253-8390 
 If to the Materia to: 
 Wells-DFH Materia GmbH & Co. KG 
 Kriegsbergstrasse 13 
 70174 Stuttgart 
 Germany 
 Attention: Alexander Bernth 
 Facsimile: 49 711 2845 401 
  

 19 

 With a copy (which shall not constitute notice) to: 
 Clifford Chance 
 Mainzer Landstrasse 46 
 60325 Frankfurt am Main 
 Frankfurt 
 Germany 
 Attention: Dr. Thomas Gasteyer and Klaus Weinand-Härer 
 Facsimile: 49 69 7199 4000 
 (d) Entire Agreement. This Agreement supersedes all prior and contemporaneous discussions and agreements, both written and oral, among the Parties with respect to the subject matter of this Agreement and constitutes the sole and
entire agreement among the Parties to this Agreement with respect to the subject matter of this Agreement, and supersedes all prior and contemporaneous agreements and understandings, written or oral, with respect to the subject matter hereof.

 (e) Waiver. Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof,
but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by law or otherwise afforded, will be cumulative and not
alternative. 
 (f) Amendment; Modification. This Agreement may be amended, supplemented or modified only by a written instrument duly
executed by or on behalf of each Party to this Agreement. 
 (g) Specific Performance. The Parties hereto agree that if any of the
provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached, irreparable damage would occur, no adequate remedy at law would exist and damages would be difficult to determine, and that the
parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or equity. 
 (h)
Counterparts. This Agreement may be executed in any number of counterparts, by facsimile or otherwise, all of which will constitute one and the same instrument. 
 (i) Headings. The headings in this Agreement are for convenience of reference only, and they shall not limit or otherwise affect the interpretation of any term or provision hereof. 
 (j) Successors and Assigns; Assignment. This Agreement and the rights, powers and duties set forth herein shall, except as set forth herein, bind
and inure of the benefit of the heirs, executors, administrators, legal representatives, successors and assigns of the Parties hereto. The Parties hereto may not assign any of their respective rights or interests in and under this Agreement without
the prior express written consent of the other Party, and any attempted assignment without any such consent shall be void and without effect. 
  

 20 

 (k) Severability. If any part of this Agreement is held by a court of competent jurisdiction to be
unenforceable, illegal or invalid, the balance of this Agreement shall remain in full force and effect unaffected by such unenforceability, illegality or invalidity. 
 (l) 2008 Fund. Following the execution of this Agreement and the transfer of any and all Shares held by the 2008 Fund to Materia, the 2008 Fund shall have no further rights or obligations hereunder. 

 

 21 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

  

					
	 Wells-DFH Materia GmbH & Co. KG
  
 By: Wells-DFH Verwaltungsgesellschaft mbH
 As General Partner

		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

					
		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

					
	
	 Wells-DFH Timberland Nr. 88 GmbH & Co. KG
  
 By: Wells-DFH Verwaltungsgesellschaft mbH
 As General Partner

		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

					
		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

					
	
	Deutsche Fonds Holding AG
		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

					
	Wells Timberland REIT, Inc.
		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  
  

					
	Wells Timberland Management Organization, LLC
		
	By:	 	 
		 	Name:	 	 
		 	Title:EXHIBIT 10.1

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment
Agreement (“Agreement”), made this 1st day of March, 2006, between HomeTown Bank, a Virginia Banking Corporation (“Employer”)
and Susan K. Still (“Employee”). 
 WHEREAS, Employer recognizes that it is important to Employer and its stockholders to have
stability and continuity in its executive management; 
 WHEREAS, Employee desires job stability in order to devote her focus and energies on
the management of Employer without concern over long-term implications on her career based on short-term considerations; 
 WHEREAS, Employer
also recognizes, as is the case with many publicly held corporations, the possibility that a change in control may arise and that such possibility, and the uncertainty and questions which it may raise among executive management, may result in the
departure or distraction of executive management personnel to the detriment of Employer and the shareholders of Employer; 
 WHEREAS, the
Board of Directors of HomeTown Bank has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of its Executive Vice President and Chief Lending Officer to her duties without distraction
by the possibility of a change in control of Employer; 
 WHEREAS, the Board believes it important, should Employer or the shareholders of
Employer receive a proposal for transfer of control of Employer, that Employee, as a member of the Executive Management of Employer, be able to assess such proposal and advise the Board thereon, without being unduly influenced by the uncertainties
of Employee’s personal situation; 

 WHEREAS, Employer and Employee now desire to formalize said employment with a formal Employment
Agreement, including change in control provisions. 
 NOW THEREFORE, in consideration of the premises and mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows: 
 SECTION I. DEFINITIONS. As used in this Agreement, the following
capitalized terms have the indicated meanings unless the context clearly requires otherwise: 
 1.01. “Board” means the Board of
Directors of the Employer as the same may be constituted from time to time unless otherwise expressly provided herein. 
 1.02.
“Cause” means (a) the continued knowing and willful failure by Employee to reasonably perform her duties hereunder (other than any such failure resulting from her incapacity due to physical or mental illness) or otherwise to
materially comply with her obligations hereunder after a written demand for performance with respect thereto is delivered to the Employee by the Board or the Chief Executive Officer and which failure has not been cured as hereinafter provided, which
demand specifically identifies the manner in which the Board or the Chief Executive Officer believes that Employee has not performed her duties or is otherwise in breach of her obligations hereunder; or (b) the engaging by the Employee in
conduct constituting a felony or a crime involving moral turpitude; or (c) the issuance of a removal order or similar order by a governmental regulatory agency with appropriate jurisdiction prohibiting Employee from participating in the affairs
of the Employer; or (d) drug or alcohol abuse, but only to the extent that such abuse had an obvious and material effect on Employer’s reputation and/or on the performance of Employee’s duties and responsibilities under this
Agreement. Any act or 

  

 2 

 
failure to act by Employee based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Employer
or based upon Employee’s good faith efforts to comply with all applicable banking rules and regulations shall be conclusively presumed to be done, or omitted to be done, by the Employee in good faith and in the best interests of the Employer
and shall not be a basis for termination for Cause. It is also expressly understood that the Employee’s attention to matters not directly related to the business of the Employer shall not provide a basis for termination for Cause so long as the
Board has approved Employee’s engagement in such activities. Upon the issuance of a written demand for performance under Section 1.02(a), Employee shall have 30 days in which to correct the deficiency, and if the Employee corrects such
deficiency within this period the deficiency shall not constitute Cause. If the Employee does not correct the deficiency, in the sole discretion and judgment of the Board within the thirty (30) day period, such deficiency shall constitute Cause
for purposes of the termination of this Agreement. The conditions constituting Cause under Section 1.02(b) or (c) above shall not require prior notice, a written demand for performance or an opportunity to cure. 
 1.03 “Change in Control” shall be defined as set forth in Paragraph 6.01 hereof. 
 1.04. “Date of Termination” means the date Employee’s employment hereunder is deemed terminated, as follows: (a) other than as
provided in Section 1.02(b) or (c), the date specified in the Notice of Termination, which date shall be at least 15 days, but not more than 30 days, after the date of the Notice of Termination, (b) if Employee’s employment is to be
terminated by Employer for Disability, thirty (30) days after Notice of Termination is given (provided that in the case of Disability the Employee shall not 

  

 3 

 
have returned to the performance of her duties on a full-time basis during such thirty (30) day period), (c) if Employee’s employment is
terminated by death, the date of Employee’s death, or (d) if Employee retires, the date of Employee’s Retirement. 
 1.05.
“Disability” means (a) as a result of Employee’s physical or mental condition, Employee shall have been absent from the full-time performance of her duties with the Employer for six (6) consecutive months, and
(b) within thirty (30) days after Notice of Termination pursuant to Section 1.04(b) is given Employee shall not have returned to the full-time performance of her duties with or without reasonable accommodation. 
 1.06. “Employer” includes any corporation or other entity which is the surviving or continuing entity in respect of any merger, consolidation
or form of business combination in which the Employer ceases to exist. 
 1.07. “Employment Year” means the 12-month period
beginning with the Initial Date and each 12-month period beginning on the annual anniversary of such Initial Date thereafter. 
 1.08.
“Initial Date” means March 1, 2006. 
 1.09. “Notice of Termination” means a written notice that Employee’s
employment with Employer is terminated that specifies the Date of Termination when required in accordance with Section 1.04. 
 1.10.
“Person” means any individual, corporation, partnership, group, association or other “person” as such term is used in Sections 3(a)(9) and 13(d)(3) of the Exchange Act, other than Employer or any employee benefit plan(s).

  

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 1.11. “Retirement” means voluntary termination of Employee’s employment hereunder after
the attainment of age sixty-five (65) or otherwise in accordance with Employer’s then established retirement policies. 
 1.12.
“Successor” means any Person that succeeds to, or has the practical ability to control (either immediately or with the passage of time) the Employer’s business directly, by merger or consolidation, or indirectly by purchase of the
Employer’s voting securities, all or substantially all of its assets or otherwise. 
 SECTION II. TERMS OF EMPLOYMENT AND
DUTIES. 
 2.01. Employment with Employer. Employer employs Employee under the terms of this Agreement as of the Initial Date as
Executive Vice President and Chief Lending Officer of Employer. Employee shall be expected to perform such services as are generally performed by the Executive Vice President and Chief Lending Officer of a community, commercial bank. Employee shall
comply fully with all policies and procedures established, and all lawful directives given, from time to time, by the Board or the Chief Executive Officer. 
 2.02. Acceptance of Employment. Employee accepts such employment and shall devote her full-time, attention and best efforts to the diligent performance of her duties herein specified and as an officer of
Employer. While employed hereunder, Employee will not, without the prior express written consent of the Board or the Chief Executive Officer accept employment with any other individual, corporation, partnership, governmental authority or other
entity, or engage in any other venture for profit which the Board may consider in its reasonable discretion and judgment to be in conflict with Employer’s best interest or to be in competition with Employer’s business, or which may 

  

 5 

 
interfere in any way with Employee’s performance of her duties hereunder. It is understood and agreed that Employee has the right to participate in
passive investments including income producing real estate. 
 2.03. Term of Employment. Employee shall be employed by Employer
pursuant hereto until the third year anniversary of the Initial Date unless Employee’s employment is sooner terminated as set forth herein; provided, however, that beginning with the first anniversary of the Initial Date and each anniversary
thereafter, the term of Employee’s employment shall automatically be extended for one additional Employment Year unless at least ninety (90) days prior to such anniversary date, the Employer on the one hand or the Employee, on the other,
shall have given written notice that the Employee’s employment shall not be so extended. 
 2.04. Offices. Termination of
employment hereunder shall include termination of employment as Executive Vice President and Chief Lending Officer of Employer and of all other offices and positions with the Employer. 
 SECTION III. COMPENSATION AND RELATED MATTERS. 
 3.01. Base Salary. From the date hereof until the Date of Termination, Employee shall have an annual base salary of ONE HUNDRED FORTY THOUSAND DOLLARS ($140,000.00), as the same may be adjusted from time to
time pursuant hereto. 
 3.02. Employee Benefits. Subject to meeting applicable eligibility provisions, Employee shall be entitled to
the same medical and health insurance coverage and other benefits as may be provided by Employer to its executive management from time to time. 
  

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 SECTION IV. RIGHTS ON TERMINATION OF EMPLOYMENT. 
 4.01. Termination for Cause by Employer, Termination for Any Reason by Employee, Termination on Account of Death. If Employer terminates
Employee’s employment for Cause or if Employee terminates her employment for any reason, or if the Employee’s employment is terminated on account of her death, the Employer shall pay the Employee her full base salary through the Date of
Termination at the rate in effect at the time Notice of Termination is given. No Notice of Termination is required hereunder in the event of Employee’s death, and the foregoing amounts shall be determined on the date of death. 
 4.02. Termination by Employer Without Cause. Upon the termination of the Employee’s employment by Employer without Cause as defined in
Section 1.02 above, Employer shall pay Employee a lump sum payment equal to (a) the total base salary that Employee would have earned had Employee continued in the Employer’s employ through the remaining term of employment, without
reference to her termination, such base salary to be at the rate in effect, without reference to her termination, at the time a Notice of Termination is given, and (b) the present value of the Employer’s cost of all welfare, pension and
other benefits then being provided to Employee calculated as if the Employee had continued in the Employer’s employ through the remaining term of employment as then in effect with the same benefits at the same cost to Employer. 
 4.03. Other Terminations. In the event of any termination of Employee’s employment as then in effect which is not provided for in
Section 4.02, Employee shall be entitled to no compensation or other benefits whatsoever beyond the Date of Termination except such benefits as may be required by COBRA or other applicable law. 
  

 7 

 4.04. Offset. The amount of any payment provided for in this Section IV shall not be reduced,
offset or subject to recovery by the Employer or Successor by reason of any compensation earned by Employee as the result of employment by another employer after the Date of Termination, or otherwise. 
 SECTION V. STOCK OPTIONS. 
 5.01. Stock Options. Employer’s Board of Directors has adopted the HomeTown Bank 2005 Stock Option Plan (the “Stock Option Plan”) and granted (the “Grant”) to Employee 30,000 options to purchase Employer
common stock. The options granted are subject in all respects to the terms and conditions of the Stock Option Plan and the Grant and may be exercised only in the manner provided therein. 
 5.02. Forfeiture. If at any time while the options are exercisable, the Board of Governors of the Federal Reserve System or the Bureau of
Financial Institutions makes a formal capital call on the Employer, Employee will be required to exercise all exercisable options in whole or part as may be needed for additional required capital or such exercisable options shall be forfeited if
such action is required by the Employer’s bank regulator(s). Any options not required to be exercised under the terms of any such capital call may be exercised under the original terms of this Agreement. 
 5.03. Qualified Stock Options. It is the intent of Employer to seek approval by Employer’s shareholders of the Stock Option Plan at
Employer’s 2006 annual shareholders’ meeting and, if approved by such shareholders, the options granted to Employee as contemplated by Section 5.01 shall constitute incentive stock options as such term is defined under
Section 422 of the United States Internal Revenue Code; provided, however, that in the event such Stock Option Plan is not, for any reason, 

  

 8 

 
approved by such shareholders, the options granted to Employee pursuant to such Stock Option Plan as contemplated hereby shall be nonqualified options.
Employer does not represent or warrant that the options granted as contemplated hereby will be or are capable of becoming qualified stock options within the meaning of Section 422 of the U.S. Internal Revenue Code or that the Stock Option Plan
will be approved by Employer’s shareholders at any time. Nothing herein shall obligate Employer to take any act or refrain from taking any act in furtherance of qualifying such stock options under Section 422. 
 SECTION VI. CHANGE IN CONTROL. 
 6.01 For purposes of this Agreement, a “change in control” of Employer shall have occurred at such time as (a) the Federal Reserve Board should have approved a notice filed by any Person (as defined in subsection 1.10) with
respect to Employer pursuant to 12 C.F.R. § 225.41 (or any successor regulation thereto), without respect to the exceptions thereto under 12 C.F.R. § 225.42, as in effect on the date hereof; (b) any Person becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934 or any successor regulation thereto), directly or indirectly, of 25% or more of the combined voting power of Employer’s outstanding securities
ordinarily having the right to vote at elections of its directors; (c) individuals who constitute Employer’s Board of Directors on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority
thereof; provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by Employer’s shareholders, was approved by a vote at least three quarters of the directors comprising the Incumbent
Board shall be considered as though such Person were a 

  

 9 

 
member of the Incumbent Board for purposes of this Section VI; (d) the merger or consolidation of Employer with or into another corporation;
(e) the sale, conveyance or other transfer of substantially all of the assets of Employer; or (f) the closing of a corporate reorganization in which the Employer becomes a subsidiary of a holding company, the majority of the common stock
of which is owned, in aggregate, by persons who did not own the majority of the common stock of HomeTown Bank (or its successor) immediately prior to the reorganization. The formation of a bank holding company whereby the common stock of Bank will
be exchanged for stock in the holding company shall not constitute a “change in control” under this Agreement. 
 SECTION
VII. TERMINATION FOLLOWING CHANGE IN CONTROL. 
 7.01 Employer recognizes that a change in control as defined in Section VI may
directly affect the direction and philosophy of Employer. A change in control may also affect Employee’s responsibilities and position with the Employer. If any of the events described in Section VI hereof constituting a change in control of
Employer shall have occurred, Employee shall be entitled to compensation provided in subsection 8.02 of Section VIII hereof upon termination by Employer of Employee’s employment with Employer or constructive termination of Employee’s
employment by transferring Employee outside the Roanoke Valley or substantially changing Employee’s responsibilities and job description. 
 7.02 Any termination following a change in control shall be communicated by written notice of termination (“Notice of Termination”) to the Employee. Such Notice of Termination shall specify the date as of which employment shall
terminate (“Date of Termination”), which said Date of Termination shall not be more than sixty (60) days after the date of the Notice of Termination. 
  

 10 

 SECTION VIII. COMPENSATION UPON TERMINATION FOLLOWING CHANGE IN CONTROL; OTHER AGREEMENTS.

 8.01 During any period following a change in control that Employee fails to perform her duties as a result of incapacity due to physical
or mental illness, Employee shall continue to receive her salary at the rate then in effect and any benefits or awards under any Plans shall continue to accrue during such period, to the extent not inconsistent with such Plans, until Employee’s
employment is terminated pursuant to and in accordance with Section VII hereof. Thereafter, Employee’s compensation and other benefits shall be determined in accordance with subsection 8.02 hereof and the Plans then in effect. 
 8.02 Subject to subsections 7.01 and 8.04 and Section XI hereof, if a change in control shall have occurred, as defined in Section VI above, and
Employee’s employment with Employer is terminated by Employer, then Employee shall be entitled, without regard to any contrary provisions of any Plan, to the following benefits: 
 (A) For thirty-six (36) months less one day, commencing on the Date of Termination, Employer shall continue to provide Employee all
perquisites which were being provided to Employee immediately prior to the Date of Termination and shall make provisions and pay all insurance premiums as they come due during such period so that Employee’s medical insurance benefits, life
insurance and accident insurance plan coverage will continue to be on terms and at levels substantially the same as those existing on the day prior to the Date of Termination. 
  

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 (B) For thirty-six (36) months less one day, commencing on the Date of Termination,
Employer shall continue to pay to Employee the Annual Compensation theretofore received by Employee from Employer. For purposes of this Agreement, “Annual Compensation” shall mean Employee’s current annual base salary immediately
preceding the change in control or immediately preceding the Date of Termination, whichever is the greater, in accordance with Section 3.01 hereof. Payment shall be made each month when the Employer’s payroll is customarily paid unless
Employee irrevocably elects to receive all salary compensation due hereunder in a lump sum which shall be paid within thirty (30) days of the Employee’s election. Should Employee elect to receive a lump sum settlement instead of monthly
payments, the amount payable shall be reduced to the present value of monthly payments by using the one year certificate of deposit rate then in effect at HomeTown Bank. 
 (C) Should there be a distribution from any executive incentive compensation plan at the close of the plan year during which termination
occurs, Employee shall in addition be paid the amount provided for in Section 3.01 hereof. 
 (D) Employee shall be or
become vested under all employee benefit, retirement and stock options plans under which Employee is a beneficiary as of the date when the last compensation under this Agreement is due to be paid to Employee. 
 8.03 The amount of any payment provided for in this Section VIII shall not be reduced, offset, or subject to recovery by Employer by reason of any
compensation earned by Employee as a result of subsequent employment by another employer other than a competing banking institution in violation of subsection 9.02 of Section IX hereof. 
  

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 8.04 Notwithstanding the other provisions of this Section VIII, should Employer terminate Employee for
intentional misconduct tantamount to the commission of a felony and relating to her employment, no further compensation shall be paid to Employee after the Date of Termination. Otherwise, Employee shall be entitled to the full compensation provided
for in this Section VIII after her termination, subject, however, to the provisions of subsection 7.01 of Section VII. 
 SECTION IX.
CONFIDENTIALITY; COVENANT NOT TO COMPETE. 
 9.01 Confidentiality. Employee agrees that subsequent to her period of employment
with Employer, she will not at any time communicate or disclose to any unauthorized person, without the express prior written consent of the Employer, its operations, finances, condition, properties, assets, business or strategic plans, employees,
budgets, or any other matter, it being understood, however, that the obligations of this Section shall not apply to the extent that the aforesaid matters (1) are disclosed in circumstances where Employee is legally required to do so or
(ii) become generally known to and available for use by the public otherwise than by the Employee’s wrongful act. 
 9.02
Covenant Not to Compete. If (i) the Employee’s employment with the Employer or Bank is terminated without Cause as defined in Section 1.02 above, and the Employee has received the payments described in Section 4.03 above,
or (ii) the Employee’s employment with Employer is terminated for Cause pursuant to Section 1.02(b) or (c) above, or (iii) Employee resigns her position with Employer, the Employee agrees that for a period of two years from
the date her employment is terminated, she will not, without the prior, express consent in writing of the Chairman of the Board of 

  

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Directors or Successors, become affiliated within a 40 mile radius of the main office of the Employer as an officer, employee, agent, partner, director,
consultant, or substantial stockholder (more that 5% of any class of common or preferred equity, options to acquire the same or convertible debt) of any entity engaged in the commercial or retail banking, lending or leasing business or become
associated within the geographical area described above with any entity in the process of formation to engage in the retail or commercial banking, lending or leasing business, or any group that intends to form any such entity. Notwithstanding the
foregoing, it is recognized that many banks have offices or other operations within a 40-mile radius of the main office of the Employer and Employee is not prohibited from employment with such a bank provided that Employee’s office is located
outside the restricted
 40-mile radius and Employee does not, directly or indirectly, knowingly solicit business from or do business with any customers of Employer. 
 9.03 Relief. In the event Employee’s actual or threatened breach of this Section, Employer or Successor, as the case may be, shall be entitled to a preliminary restraining order and an injunction
restraining the Employee from violating its provisions. Notwithstanding anything to the contrary herein, Employee agrees that it shall pay all costs and expenses of Employer, including but not limited to reasonable expert witness and legal fees,
should it prevail, in any litigation to enforce this Section IX. 
 9.04 Other Remedies. Nothing in this Agreement shall be construed
to prohibit the Company or Successor from pursuing any other available remedies for such breach or threatened breach, including the recovery of damages from the Employee. If at the time of enforcement of this Section a court holds that the duration,
scope or area 

  

 14 

 
restrictions stated herein are unreasonable under the circumstances then existing and, thus, unenforceable, the Employer and Employee agree that the maximum
duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area. 
 SECTION X.
SUCCESSORS; BINDING AGREEMENT. 
 10.01 This Agreement shall inure to the benefit of and be binding upon any corporate or other
successor of Employer which shall result from a change in control as defined in Section VI hereof. Employer shall require any such successor, by an agreement in form and substance satisfactory to Employee, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent as Employer would be required to perform if no such succession had taken place. 
 10.02 This Agreement shall inure to the benefit of and be enforceable by Employee’s personal or legal representative, executors, administrators, successors, heirs, distributees, devisees, and legatees. If Employee should die while any
amount would still be payable to Employee hereunder at the time of death of Employee, such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Employee’s devisee, legatee, beneficiary, or
designee or, if there be no such designee, to Employee’s estate. 
 SECTION XI. TAXES. 
 11.01 All payments to be made to Employee under this Agreement will be subject to required withholding of federal, state and local income and employment
taxes. 
  

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 11.02 Anything in this Agreement to the contrary notwithstanding, in the event that mutually satisfactory
independent auditors (the “Auditors”) shall determine that any payment or distribution by Employer to or for Employee’s benefit (whether paid or payable or distributed pursuant to the terms of this Agreement or otherwise) (a
“Payment”) would be a “parachute payment” as defined in Section 280G of the Internal Revenue Code (the “Code”), then the aggregate present value of amounts payable or distributable to or for Employee’s benefit
pursuant to this Agreement are hereinafter referred to as “Agreement Payments”. 
 11.03 If any of the Agreement Payments will be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code or any similar tax that may hereafter be imposed (the “Excise Tax”), Employer shall pay to Employee at the time specified below an additional amount (the
“Gross-up Payment”) such that the net amount retained by Employee, after deduction of any Excise Tax on the Agreement Payments and any federal, state and local income tax and Excise Tax upon the Gross-up Payment, but before deduction for
any federal, state or local income tax on the Agreement Payments, shall be equal to the total amount of the Agreed Payments. 
 11.04 For
purposes of determining whether any of the Agreement Payments will be subject to the Excise Tax and the amount of such Excise Tax, (i) the total Agreement Payments shall be treated as “parachute payments” within the meaning of
Section 280G(b)(2) of the Code, and all “excise parachute payments” within the meaning of Section 280G(b)(1) of the Code shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel selected by the
Auditors, such other payments or benefits (in whole or in part) do not constitute parachute payments, or such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered within the meaning of
Section 280G(b)(4) of the Code in excess of the base 

  

 16 

 
amount within the meaning of Section 280G(b)(3) of the Code or are otherwise not subject to the Excise Tax, (ii) the amount of the Agreement
Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the Agreed Payments or (B) the amount of excess parachute payments within the meaning of Section 280G(b)(1) of the
Code (after applying clause (i) above), and (iii) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 11.05 For purposes of determining the amount of the Gross-up Payment, Employee shall be deemed to pay federal income taxes at the highest
marginal rate of federal income taxation for the calendar year in which the Gross-up Payment is to be made and the applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-up Payment
is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. In the event that the Excise Tax is subsequently determined to be less than the amount taken into account
hereunder at the time the Gross-up Payment is made, Employee shall repay to Employer at the time that the amount of such reduction in Excise Tax is finally determined the portion of the Gross-up Payment attributable to such reduction (plus the
portion of the Gross-up Payment attributable to the Excise Tax and federal, state and local income tax imposed on the portion of the Gross-up Payment being repaid by Employee if such repayment results in a reduction in Excise Tax and/or a federal,
state and local income tax deduction), plus interest on the amount of such repayment at the applicable federal rate. In the event that the Excise Tax is determined to 

  

 17 

 
exceed the amount taken into account hereunder at the time the Gross-up Payment is made (including by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-up Payment), Employer shall make an additional Gross-up Payment in respect of such excess (plus any interest payable with respect to such excess) at the time that the amount of such excess is finally
determined. 
 11.06 The Gross-up Payment or portion thereof provided for above shall
be paid not later than the thirtieth (30th) day following payment of any amounts under Section VII; provided, however, that if the amount of
such Gross-Up Payment or portion thereof cannot be finally determined on or before such day, Employer shall pay to Employee on such day an estimate, as determined in good faith by Employer, of the minimum amount of such payments and shall pay the
remainder of such payment (together with interest at the applicable federal rate) as soon as the amount thereof can be determined, but in no event later than the forty-fifth (45th) day after payment of any amounts under Section VII. In the event that the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by
Employer to Employee, payable on the fifth (5th) day after demand by Employer (together with interest at the applicable federal rate).

 11.07 All determinations made by the Auditors pursuant to this Section XI shall be binding upon Employer and Employee. 
 SECTION XII. SURVIVAL. 
 The
respective obligations of, and benefits afforded, Employer and Employee as provided in Sections III, IV, V, VII, VIII, IX, X, XI, XII, XIII, XIV, XV, and XVI shall survive termination of this Agreement. 
  

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 SECTION XIII. NOTICES. 
 For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid and addressed to Employee at the address listed below her name at the end of this Agreement and to Employer at its main
office and marked to the attention of the Chairman of the Board of Directors, or to such other addresses as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be in effect
only upon receipt. 
 SECTION XIV. MISCELLANEOUS. 
 No provision of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in a writing signed by
Employee and the Chairman of the Board of Directors of Employer other than Employee. No waiver by either party hereto at any time of any breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set forth in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Virginia.

  

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 SECTION XV. VALIDITY. 
 The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect. 
 SECTION XVI. RELATED AGREEMENTS. 
 To the extent that any provision of any other agreement between Employer or any of its subsidiaries and Employee shall limit, qualify or be inconsistent
with any provision of this Agreement, then for purposes of this Agreement, while the same shall remain in force, the provision of this Agreement shall control and such provision of such other agreement shall be deemed to have been superseded, and to
be of no force and effect, as if such other agreement had been formally amended to the extent necessary to accomplish such purpose. 
 IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written. 
  

									
	EMPLOYEE:	 		 	EMPLOYER:
			
		 		 	HOMETOWN BANK
				
	/s/ Susan K. Still	 		 	By:	 	/s/ William S. Clark
	Susan K. Still	 		 		 	President and Chief Executive Officer
	5218 Falcon Ridge Road	 		 		 	
	Roanoke, VA 24014	 		 		 	

  

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