Document:

Amended and Restated Security Agreement

 Exhibit 10.11 
 AMENDED AND RESTATED SECURITY AGREEMENT 
 AMENDED AND RESTATED SECURITY AGREEMENT, dated as of March 24, 2010 (as amended, supplemented, restated or otherwise modified from time to time, this “Agreement”), made by WELLS TIMBERLAND REIT, INC. a Maryland
corporation (the “Grantor”), in favor of COBANK, ACB, as administrative agent (in such capacity, the “Administrative Agent”) for the benefit of itself and each other Lender Party (such capitalized term and all other
capitalized terms not otherwise defined herein to have the meanings provided for in Article I). This Agreement amends and Restates in its entirety that certain Security Agreement, dated as of October 9, 2007 (the “Original
Security Agreement”), by the Grantor in favor of the Administrative Agent for the benefit of itself and each other Lender Party. 
 W I T N E S S E T H: 
 WHEREAS, pursuant to the
Amended and Restated Credit Agreement, dated as of the date hereof (as amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”), among Timberlands II, LLC, a Delaware limited liability
company, Wells Timberland Operating Partnership, L.P., a Delaware limited partnership (each a “Borrower” and collectively, the “Borrowers”), the various lending institutions as are, or may from time to time become,
parties thereto (collectively, the “Lenders”), and the Administrative Agent in its capacity as administrative agent for the Lenders, the Lenders have extended Commitments to make Loans to the Borrowers; 
 WHEREAS, as a condition precedent to the occurrence of the Funding Date under the Credit Agreement, the Grantor is
required to execute and deliver this Agreement; and 
 WHEREAS, the Grantor has duly authorized the
execution, delivery and performance of this Agreement; 
 NOW THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Lenders to make the Loans to the Borrowers pursuant to the Credit Agreement, the Grantor agrees, with the Administrative Agent for its benefit
and the benefit of each other Lender Party, to amend and restate the Original Security Agreement in its entirety as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1. Certain Terms. The following terms (whether or not underscored) when used in this Agreement, including its preamble and recitals, shall have the following
meanings (such definitions to be equally applicable to the singular and plural forms thereof): 
 “Administrative Agent” is defined in the preamble. 
 “Agreement” is defined in the preamble. 
 “Borrower” and “Borrowers” is defined in the first recital. 

 “Collateral” is defined in Section 2.1.

 “Credit Agreement” is defined in the first recital. 
 “Grantor” is defined in the preamble. 
 “Lenders” is defined in the first recital. 
 “Original Security Agreement” is defined in the preamble. 
 “Proceeds” has the meaning provided for in the U.C.C. and includes, without limitation, (a) any
and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Grantor from time to time with respect to any of the Collateral, (b) any and all payments (in any form whatsoever) made or due and payable to the Grantor from
time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental Authority, (c) any recoveries by the Grantor against third parties with respect to any
litigation or dispute concerning any of the Collateral, and (d) any and all other amounts, rights to payment or other property acquired upon the sale, lease, license, exchange or other disposition of Collateral and all rights arising out of the
Collateral. 
 “Secured Obligations” is defined in Section 2.2. 

“U.C.C.” means the Uniform Commercial Code as in effect from time to time in the State of New
York; provided that if, by reason of applicable Law, the validity or perfection or the effect of validity or perfection or non-perfection or the priority of any security interest in any Collateral granted under this Agreement is governed by
the Uniform Commercial Code as in effect in a jurisdiction other than New York, then as to such matters “U.C.C.” shall mean the Uniform Commercial Code as in effect in such other jurisdiction. 
 SECTION 1.2. Credit Agreement Definitions. Unless otherwise defined herein or the context otherwise requires,
terms used in this Agreement, including its preamble and recitals, have the meanings provided in the Credit Agreement. 
 SECTION 1.3. U.C.C. Definitions. Unless otherwise defined herein or the context otherwise requires, terms for which meanings are provided in the U.C.C. (including the term Control) are used in this Agreement, including its
preamble and recitals, with such meanings. 
 ARTICLE II 
 SECURITY INTEREST 
 SECTION 2.1.
Grant of Security Interest. The Grantor hereby pledges, hypothecates, collaterally assigns, charges, mortgages and pledges to the Administrative Agent for its benefit and the ratable benefit of each of the other Lender Parties, and hereby
grants to the Administrative Agent, for its benefit and the ratable benefit of each of the other Lender Parties, a security interest in, all of its right, title and interest in and to the following, whether now or hereafter existing or acquired
(collectively, the “Collateral”): 
  

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 (a) the Domestic Equity Raise Account and all cash, checks, drafts,
certificates and instruments, if any, from time to time deposited or held in the Domestic Equity Raise Account, including, without limitation, all deposits or wire transfers made to the Domestic Equity Raise Account; 
 (b) the International Equity Raise Account and all cash, checks, drafts, certificates and instruments, if any, from time to
time deposited or held in the International Equity Raise Account, including, without limitation, all deposits or wire transfers made to the International Equity Raise Account; 
 (c) any and all amounts on deposit in the Domestic Equity Raise Account and the International Equity Raise Account that are invested in Cash Equivalent Investments; 
 (d) all interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise
payable in respect of, or in exchange for, any or all of the foregoing; and 
 (e) all Proceeds of any and all
of the foregoing Collateral. 
 SECTION 2.2. Security for Obligations. This Agreement secures the
prompt payment in full in cash of all the Obligations, including all amounts payable by each Borrower and each other Loan Party under or in connection with the Credit Agreement, the Notes and each other Loan Document, whether for principal,
interest, costs, fees, expenses, indemnities or otherwise and whether now or hereafter existing (all of such obligations being the “Secured Obligations”). 
 SECTION 2.3. Continuing Security Interest; Transfer of Notes. This Agreement shall create a continuing security interest in the Collateral and shall remain in full
force and effect until payment in full in cash of all Secured Obligations (on terms and pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent) and the irrevocable termination of all the Commitments, at
which time the security interest granted herein shall terminate and all rights to the Collateral shall revert to the Grantor. 
 SECTION 2.4. Security Interest Absolute. All rights of the Administrative Agent and the security interests granted to the Administrative Agent hereunder, and all obligations of the Grantor
hereunder, shall be absolute and unconditional, irrespective of: 
 (a) any lack of validity, legality or
enforceability of any Loan Document; 
 (b) the failure of any Lender Party: 
 (i) to assert any claim or demand or to enforce any right or remedy against the Grantor, any other Loan Party or any other
Person under the provisions of any Loan Document or otherwise; or 
 (ii) to exercise any right or remedy
against any other guarantor of, or collateral securing, any Secured Obligation of the Grantor or of any other Loan Party; 
  

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 (c) any change in the time, manner or place of payment of, or in any other
term of, all or any of the Secured Obligations or any other extension, compromise or renewal of any Secured Obligation, including any increase in the Secured Obligations resulting from the extension of additional credit to the Grantor or any other
Loan Party or otherwise; 
 (d) any reduction, limitation, impairment or termination of any Secured Obligation
of the Grantor or of any other Loan Party for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to (and the Grantor hereby waives any right to or claim of) any defense or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Secured Obligation of the Grantor or of any
other Loan Party or otherwise; 
 (e) any amendment to, rescission, waiver, or other modification of, or any
consent to departure from, any of the terms of any Loan Document; 
 (f) any addition, exchange, release,
surrender or non-perfection of any collateral (including the Collateral), or any amendment to or waiver or release of or addition to or consent to departure from any guaranty, for any of the Secured Obligations; or 
 (g) any other circumstances which might otherwise constitute a defense available to, or a legal or equitable discharge of,
the Grantor, any other Loan Party, any surety or any guarantor or otherwise, including as a result of any proceeding of the nature referred to in Section 8.1.8 of the Credit Agreement. 
 SECTION 2.5. Grantor Remains Liable. Anything herein to the contrary notwithstanding: 
 (a) the Grantor shall remain liable under the contracts and agreements related to the Collateral to the extent set forth
therein, and shall perform all of its duties and obligations under such contracts and agreements to the same extent as if this Agreement had not been executed; 
 (b) the Grantor will comply in all material respects with all material Laws relating to the ownership and operation of the Collateral, and shall pay when due all taxes, fees and
assessments imposed on or with respect to the Collateral, except to the extent the validity thereof is (A) being diligently contested in good faith by appropriate proceedings which (i) suspend the collection thereof and any Lien therefrom
and (ii) for which adequate reserves in accordance with GAAP have been set aside by the Grantor, and (B) could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect; and 
 (c) neither the Administrative Agent nor any other Lender Party shall have any obligation or liability under any contracts
or agreements included in the Collateral by reason of this Agreement, nor shall the Administrative Agent or any other Lender Party be obligated to perform any of the obligations or duties of the Grantor thereunder or to take any action to collect or
enforce any claim for payment assigned hereunder. 
  

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 SECTION 2.6. Waiver of Subrogation. The Grantor hereby
irrevocably waives to the extent permitted by applicable Law and until such time as the Secured Obligations shall have been paid in full in cash (on terms and pursuant to documentation in form and substance reasonably satisfactory to the
Administrative Agent) and all the Commitments have irrevocably terminated, any claim or other rights which it may now or hereafter acquire against each Borrower or any other Loan Party that arises from the existence, payment, performance or
enforcement of the Grantor’s obligations under this Agreement or any other Loan Document, including any right of subrogation, reimbursement, exoneration or indemnification, and any right to participate in any claim or remedy of any Lender Party
against each Borrower or any other Loan Party or any collateral which any Lender Party now has or hereafter acquires, whether or not such claim, remedy or right arises in equity or under contract or Law. If any amount shall be paid to the Grantor in
violation of the preceding sentence, such amount shall be deemed to have been paid to the Grantor for the benefit of, and held in trust for, the Lender Parties, and shall forthwith be paid to the Administrative Agent to be credited and applied
against the Secured Obligations, whether matured or unmatured. The Grantor acknowledges that it will receive direct and indirect benefits for the financing arrangements contemplated by the Credit Agreement and that the waiver set forth in this
Section is knowingly made in contemplation of such benefits 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 The Grantor represents and warrants unto each Lender Party, as of the date it becomes a party to this Agreement, as set forth in this Article. 
 SECTION 3.1. Location of Grantor. The Grantor is a Maryland corporation and its organizational
identification number is D01954436. 
 SECTION 3.2. Ownership, No Liens, etc. The Grantor
owns the Collateral free and clear of any Lien, except for the first priority security interest created by this Agreement. 
 SECTION 3.3. Valid Security Interest. Upon execution of (a) a control agreement establishing the Administrative Agent’s Control with respect to the Domestic Equity Raise
Account and (b) a control agreement establishing the Administrative Agent’s Control with respect to the International Equity Raise Account, the security interest granted pursuant to this Agreement creates a valid, first priority perfected
security interest in the Domestic Equity Raise Account, the International Equity Raise Account and other Collateral, subject to no other Liens, securing the payment of the Secured Obligations. 
 SECTION 3.4. Authorization, Approval, etc. No authorization, approval or other action by, and no notice
to or filing with, any Governmental Authority is required either for (a) the grant by the Grantor of the security interest granted hereby or for the execution, delivery and performance of this Agreement by the Grantor or (b) the perfection
of or the exercise by the Administrative Agent of its rights and remedies hereunder (other than the taking of those actions referred to in Section 3.3). 
 SECTION 3.5. Due Execution, Validity, Etc. The Grantor has full corporate power and authority, and holds all requisite licenses, permits and other approvals of
Governmental

  

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Authorities, to enter into and perform its obligations under this Agreement. The execution, delivery and performance by the Grantor of this Agreement does not contravene or result in a default
under the Grantor’s Organizational Documents or contravene or result in a default under any contractual restriction, Lien or Law binding on the Grantor. This Agreement has been duly authorized by the Grantor, has been duly executed and
delivered on behalf of the Grantor and constitutes the legal, valid and binding obligation of the Grantor enforceable in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar
Laws affecting the rights of creditors generally, and subject to the effect of general principles of equity (regardless of whether considered in a proceeding in equity or at law). 
 ARTICLE IV 
 COVENANTS 
 The Grantor covenants and agrees that, until all the Secured Obligations have been paid in full in cash (on terms and
pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent) and all the Commitments have been irrevocably terminated, the Grantor will, perform the obligations set forth in this Section. 
 SECTION 4.1. Control. The Grantor will take any and all actions necessary to (a) cause the Administrative
Agent to obtain exclusive Control of the Collateral in a manner acceptable to the Administrative Agent and (b) obtain from Persons holding any of the Collateral written confirmation of the Administrative Agent’s Control over the Collateral
upon terms and conditions acceptable to the Administrative Agent. 
 SECTION 4.2. Transfers and Other
Liens. The Grantor shall not (a) sell, assign (by operation of law or otherwise) or otherwise dispose of any of the Collateral, except as permitted by the Credit Agreement, or (b) create or suffer to exist any Lien upon or with
respect to any of the Collateral, except for the security interest created by this Agreement. 
 SECTION 4.3.
Further Assurances, etc. The Grantor agrees that, from time to time at its own expense, it will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or
that the Administrative Agent may reasonably request, in order to perfect, preserve and protect any security interest granted or purported to be granted hereby or to enable the Administrative Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral. Without limiting the generality of the foregoing, the Grantor will: 
 (a) execute and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary, or as the Administrative Agent may reasonably request, in order to perfect and preserve the
security interests and other rights granted or purported to be granted to the Administrative Agent hereby; 
 (b) furnish to the Administrative Agent, from time to time at the Administrative Agent’s request, statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as
the Administrative Agent may reasonably request, all in reasonable detail; 
  

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 (c) if requested by the Administrative Agent, execute and deliver
confirmatory written instruments, and obtain any consents, waivers or agreements, as may be necessary, or as the Administrative Agent may reasonably request, in order to perfect and preserve the security interests and other rights granted or
purported to be granted to the Administrative Agent hereby, but the Grantor’s failure to do so shall not affect or limit the security interest granted hereby or the Administrative Agent’s other rights in and to the Collateral. 

With respect to the foregoing and the grant of the security interest hereunder, the Grantor hereby authorizes the
Administrative Agent to Authenticate and to file one or more U.C.C. financing or continuation statements for the purpose of perfecting, confining, continuing, enforcing or protecting the security interest granted by the Grantor, without the
signature of the Grantor, and naming the Grantor as debtor and the Administrative Agent as secured party. A carbon, photographic, telecopied or other reproduction of this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by Law. 
 SECTION 4.4. Additional
Covenants. The Grantor agrees that, until all the Secured Obligations have been paid in full in cash on terms and pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and all Commitments shall
have irrevocably terminated, it will comply with all the terms and provisions of the Credit Agreement and the other Loan Documents that are applicable to it. 
 ARTICLE V 
 THE ADMINISTRATIVE AGENT 
 SECTION 5.1. Administrative Agent Appointed Attorney-in-Fact. The Grantor hereby irrevocably constitutes and
appoints the Administrative Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Grantor and in the name of the
Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take, upon the occurrence and during the continuance of any Event of Default, any and all actions and execute any and all documents and instruments that may,
in the judgment of the Administrative Agent, be necessary or desirable to accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, after the occurrence and during the continuance of any Event of Default the
Grantor hereby gives the Administrative Agent, the power and right, on behalf of the Grantor, without notice to or assent by the Grantor, to do any or all of the following: 
 (a) take possession of and indorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under or in respect of any Collateral and
file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Administrative Agent for the purpose of collecting any and all such moneys due under or in respect of any Collateral whenever
payable; 
 (b) pay or discharge taxes and Liens levied or placed on or threatened against the Collateral,
effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof; 
  

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 (c) execute, in connection with any sale or other disposition provided for
in Section 6.1, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and 
 (d)    (i) direct any Person liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Administrative
Agent or as the Administrative Agent shall direct; (ii) ask or demand for, collect, and receive payment of and give receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any
Collateral; (iii) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral;
(iv) defend any suit, action or proceeding brought against the Grantor with respect to any Collateral; (v) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as
the Administrative Agent may deem appropriate; and (iv) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Administrative Agent were the
absolute owner thereof for all purposes, and do, at the Administrative Agent’s option and the Grantor’s expense, at any time, or from time to time, all acts and things that the Administrative Agent deems necessary to protect, preserve or
realize upon the Collateral and the Lender Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as the Grantor might do. 
 The Grantor hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this Section is irrevocable and coupled with an interest. 
 SECTION 5.2. Administrative Agent May Perform. If the Grantor fails to perform any agreement contained herein,
the Administrative Agent may itself perform, or cause performance of, such agreement, and the reasonable expenses of the Administrative Agent incurred in connection therewith shall be payable by the Grantor. 
 SECTION 5.3. Access and Examination. In order to give effect to the intent of this Agreement the
Administrative Agent may at all reasonable times upon reasonable advance notice (if no Default or an Event of Default has occurred and is continuing) have access to, examine, audit, make extracts from and inspect the Grantor’s records, files
and books of account and the Collateral, and may discuss the Grantor’s affairs with the Grantor’s officers and management, in each case to the extent reasonably necessary in order to monitor compliance by the Grantor with its obligations
under this Agreement and the other Loan Documents. The Grantor will deliver to the Administrative Agent promptly following its request therefor any instrument necessary for the Administrative Agent to obtain records from any service bureau
maintaining records for the Grantor. The Administrative Agent may, at expense of the Grantor, use the Grantor’s personnel, supplies and premises as may be reasonably necessary for maintaining or enforcing the security interest granted
hereunder. 
 SECTION 5.4. Administrative Agent Has No Duty. (a) The powers conferred on the
Administrative Agent hereunder are solely to protect its interest (on behalf of the Lender Parties) in the Collateral and shall not impose any duty on it to exercise any such powers. The Administrative Agent’s sole duty with respect to the
custody, safekeeping and physical

  

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preservation of the Collateral in its possession, under Section 9-207 of the U.C.C. or otherwise, shall be to deal with it in the same manner as the Administrative Agent deals with similar
property for its own account. Neither the Administrative Agent nor any of its officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so, nor shall any
such Person be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof (including the taking of
any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral). Neither the Administrative Agent nor any of its officers, directors, employees or agents shall be responsible to the Grantor for any
loss, damages, depreciation or other diminution in the value of any of the Collateral that may occur as a result of or in connection with or that is in any way related to any exercise, except in respect of any damages attributable solely to any such
Person’s own gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. 
 (b) The Grantor assumes all responsibility and liability arising from or relating to the use, sale or other disposition of the Collateral. The Obligations shall not be affected by any failure of the
Administrative Agent to take any steps to perfect the security interest granted hereunder or to collect or realize upon the Collateral, nor shall loss of or damage to the Collateral release the Grantor from any of its Obligations. 
 ARTICLE VI 
 REMEDIES 
 SECTION 6.1. Remedies. If any Event of Default shall have occurred and
be continuing: 
 (a) The Administrative Agent may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it (including, without limitation, as provided in Section 5.1), all the rights and remedies of a secured party on default under the U.C.C. including notifying any or all
depository institutions with which any Collateral is maintained to remit the same to the Administrative Agent, for application to the Secured Obligations as provided herein. 
 (b) Without limiting clause (a), the Administrative Agent may exercise any and all rights and remedies of the Grantor under or in connection with the Collateral, including the
right to sue upon or otherwise collect, extend the time for payment of, modify or amend the terms of, compromise or settle for cash, credit, or otherwise upon any terms, grant other indulgences, extensions, renewals, compositions, or releases, and
take or omit to take any other action with respect to the Collateral, any security therefor, any agreement relating thereto, any insurance applicable thereto, or any Person liable directly or indirectly in connection with any of the foregoing,
without discharging or otherwise affecting the liability of the Grantor for the Obligations or under this Agreement or any other Loan Document and the Assigned Agreements or otherwise in respect of the Collateral, including any and all rights of the
Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, any Collateral. 
  

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 SECTION 6.2. Application of Proceeds. All cash proceeds
received by the Administrative Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Administrative Agent, be held, to the extent permitted under applicable Law,
by the Administrative Agent as additional collateral security for all or any part of the Secured Obligations, and/or then or at any time thereafter shall be applied (after payment of any amounts payable to the Administrative Agent pursuant to
Section 11.3 of the Credit Agreement and Section 6.3) in whole or in part by the Administrative Agent for the ratable benefit of the Lender Parties against all or any part of the Secured Obligations in accordance with
Section 8.7 of the Credit Agreement. Any surplus of such cash or cash proceeds held by the Administrative Agent and remaining after payment in full in cash of all the Secured Obligations (on terms and pursuant to documentation in form and
substance reasonably satisfactory to the Administrative Agent), and the irrevocable termination of all the Commitments, shall be paid over to the Grantor or to whomsoever may be lawfully entitled to receive such surplus. 
 SECTION 6.3. Indemnity and Expenses. The Grantor agrees to indemnify and hold harmless the Administrative
Agent and its directors, officers, employees, agents, Affiliates and their Related Parties from and against any and all claims, losses and liabilities arising out of or resulting from this Agreement (including enforcement of this Agreement), except
claims, losses or liabilities resulting from any such Person’s gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. The Grantor will promptly following demand pay to the
Administrative Agent the amount of any and all reasonable out-of-pocket expenses, including the reasonable fees and disbursements of its counsel and of any experts and agents, which the Administrative Agent actually incurs in connection with
(a) the administration of this Agreement, (b) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any of the Collateral, (c) the exercise or enforcement of any of the rights of
the Administrative Agent or the other Lender Parties hereunder or (d) the failure by the Grantor to perform or observe any of the provisions hereof. 
 ARTICLE VII 
 MISCELLANEOUS PROVISIONS 
 SECTION 7.1. Loan Document. This Agreement is a Loan Document executed pursuant to the Credit Agreement and
shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including Section 1.3 and Article XI thereof. 
 SECTION 7.2. Amendments, etc.; Successors and Assigns. (a) No amendment to or waiver of any provision
of this Agreement nor consent to any departure by the Grantor herefrom, shall be effective unless the same shall be in writing and signed by the Administrative Agent and the percentage of the Lenders as required by Section 11.1 of the Credit
Agreement, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which it is given. 
 (b) This Agreement shall be binding upon the Grantor and its successors, transferees and assignees, and shall inure to the benefit of and be enforceable by the

  

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Administrative Agent and each other Lender Party and their respective successors and assigns; provided, however, that no Grantor may assign its obligations hereunder without the
prior written consent of the Administrative Agent. Without limiting the generality of the foregoing, any Lender may assign or otherwise transfer (in whole or in part) any Loans held by it to any other Person, and such other Person shall thereupon
become vested with all the rights and benefits in respect thereof granted to such Lender under any Loan Document (including this Agreement) or otherwise, subject, however, to the provisions of Section 11.10 of the Credit Agreement. 

SECTION 7.3. Protection of Collateral. The Administrative Agent may from time to time, at its option
and at the expense of the Grantor, perform any act which the Grantor agrees hereunder to perform and which the Grantor shall fail to perform after being requested to so perform (it being understood that no such request need be given after the
occurrence and during the continuance of any Event of Default), and the Administrative Agent may from time to time take any other action which the Administrative Agent deems necessary or appropriate for the maintenance, preservation or protection of
any of the Collateral or of its security interest therein. 
 SECTION 7.4. Addresses for Notices.
All notices and other communications provided for hereunder shall be made as provided in, and subject to the terms of, Section 11.2 of the Credit Agreement. All notices to the Grantor shall be sent care of the Borrowers at its address set forth
in the Credit Agreement and all notices to the Administrative Agent shall be sent as provided in the Credit Agreement. 
 SECTION 7.5. Section Captions. Section captions used in this Agreement are for convenience of reference only, and shall not affect the construction of this Agreement. 
 SECTION 7.6. Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction. 
 SECTION 7.7. Counterparts. This Agreement may be executed
by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. 
 SECTION 7.8. Waivers. The Grantor hereby waives any right, to the extent permitted by applicable Law, to receive prior notice of a judicial or other hearing with
respect to any action or prejudgment remedy or proceeding by the Administrative Agent to take possession, exercise control over or dispose of any item of Collateral, where such action is permitted under the terms of this Agreement or any other Loan
Document or by applicable Law, or of the time, place or terms of sale in connection with the exercise of the Administrative Agent’s rights hereunder. The Grantor waives, to the extent permitted by applicable Law, any bonds, security or sureties
required by the Administrative Agent with respect to any of the Collateral. Without limiting the foregoing, the Grantor agrees that it will not invoke, claim or assert any benefit of applicable Law, or take or attempt to take any action that could
reasonably be expected to have the effect of delaying, impeding or preventing the Administrative Agent from exercising any of

  

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its rights or remedies with respect to the Collateral as herein provided. The Grantor also consents that the Administrative Agent, in connection with the enforcement of the Administrative
Agent’s rights and remedies under this Agreement, may enter upon any premises owned by or leased to it without obligations to pay rent or for use and occupancy, through self-help, without judicial process and without having first obtained an
order of any court. 
 SECTION 7.9. Governing Law, Entire Agreement, etc. THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE
GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR
AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO. 
 SECTION 7.10. Forum Selection and Consent to
Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF, ANY LENDER PARTY OR THE
GRANTOR SHALL BE BROUGHT AND MAINTAINED IN THE FEDERAL AND STATE COURTS LOCATED IN THE BOROUGH OF MANHATTAN OF THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE GRANTOR AND LENDER PARTY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH
COURTS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. THE GRANTOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING
OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE GRANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION
OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE GRANTOR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, HEREBY IRREVOCABLY WAIVES

  

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SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT. 
 SECTION 7.11. Waiver of Jury Trial. EACH LENDER PARTY AND GRANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY LENDER PARTY OR THE GRANTOR. THE GRANTOR ACKNOWLEDGES AND
AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT ENTERING INTO THIS AGREEMENT. 
 SECTION 7.12. Waiver of Certain Claims. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO GRANTOR SHALL ASSERT,
AND HEREBY WAIVES, ANY CLAIM AGAINST EACH LENDER PARTY ON ANY THEORY OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS AGREEMENT
OR ANY INSTRUMENT CONTEMPLATED HEREBY. 
 SECTION 7.13. No Strict Construction. The
parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and
no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 SECTION 7.14. No Novation. The amendment and restatement of the Original Security Agreement by this Agreement shall not constitute a novation or termination of the obligations and covenants
of the Grantor thereunder, but shall constitute an amendment and restatement of the obligations and covenants of the Grantor under the Original Security Agreement and the Grantor hereby reaffirms all such obligations and covenants under the Original
Security Agreement as amended and restated hereby. 
  

 -13- 

 IN WITNESS WHEREOF, the Grantor has caused this Agreement to be duly
executed and delivered by its officer thereunto duly authorized as of the date and year first above written. 
  

					
	 WELLS TIMBERLAND REIT, INC.

		
	 By:
	 	  

		 	 Name:
	 	 Douglas P. Williams

		 	 Title:
	 	 Executive Vice President, Secretary
& Treasurer

 ACKNOWLEDGED AND ACCEPTED: 
  

					
	 COBANK, ACB, as Administrative Agent

		
	 By:
	 	  

		 	 Name:
	 	 Michael Tousignant

		 	 Title:
	 	 Vice President

  

 -14- 
 WELLS REIT SECURITY AGREEMENT 
 SIGNATURE PAGEAmended and Restated Timber Manager Subordination Agreement

 Exhibit 10.12 
 AMENDED AND RESTATED TIMBER MANAGER SUBORDINATION AGREEMENT 
 AMENDED AND RESTATED TIMBER MANAGER SUBORDINATION AGREEMENT (this “Agreement”), dated as of March 24, 2010, among (i) COBANK, ACB, in its capacity as administrative agent
(in such capacity, the “Administrative Agent”) for the benefit of itself and each other Lender Party (such capitalized term and all other capitalized terms used herein shall have the meanings provided in Section 1.1),
(ii) TIMBERLANDS II, LLC, a Delaware limited liability company (“Wells Timberland”), and WELLS TIMBERLAND OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“Wells Partnership” and, together with
Wells Timberland, each a “Borrower” and collectively, the “Borrowers”) and (iii) WELLS TRS HARVESTING OPERATIONS, LLC, a Delaware limited liability company (“Wells TRS Subsidiary”),
(iv) WELLS TIMBERLAND HBU, LLC, a Delaware limited liability company (“Wells HBU” and together with the Borrowers and Wells TRS Subsidiary, each a “Loan Party” and collectively, the “Loan
Parties”) and (v) FOREST RESOURCE CONSULTANTS, INC., a Georgia Corporation (the “Timber Manager”). This Agreement amends and restates in its entirety that certain Timber Manager Subordination Agreement, dated as of
October 9, 2007 (the “Original Subordination Agreement”) among the Administrative Agent, for the benefit of itself and each other Lender Party, Wachovia Bank, National Association, as the Subordinated Administrative Agent (as
defined in the Original Subordination Agreement) and each other Loan Party a party thereto. 
 W I T N E S S E T H:

 WHEREAS, pursuant to the Amended and Restated Credit Agreement, dated as of the date hereof
(together with all extensions, modifications, consolidations, supplements, amendments, replacements, renewals, refinancings and restatements thereto and thereof, the “Credit Agreement”), among the Borrowers, various lenders that are
or may become parties thereto (each, a “Lender” and collectively, the “Lenders”) and the Administrative Agent in its capacity as administrative agent for the Lenders, the Lenders have given their several commitments
to make loans (collectively, the “Loans”) to the Borrowers; 
 WHEREAS, the Timber
Manager, Wells Timberland, Wells TRS Subsidiary and Wells HBU are parties to the Timberland Operating Agreement, dated as of October 9, 2007, as amended by the First Amendment to the Timberland Operating Agreement, made and entered into as of
December 31, 2008 (as so amended and together with all extensions, modifications, consolidations, supplements, amendments, replacements, renewals and restatements thereto and thereof permitted hereunder, the “Wells Management
Agreement”), under which Wells Timberland, Wells TRS Subsidiary and Wells HBU appointed the Timber Manager as manager for certain timberlands owned by Wells Timberland and Wells HBU (the “Property”), and the Timber Manager
accepted the appointment and agreed to carry out the management and operation of the Property; and 
 WHEREAS, a condition precedent to the making of the Loans under the Credit Agreement is that the Timber Manager and the Loan Parties enter into this Agreement; 

 NOW, THEREFORE, in consideration of the foregoing recitals and for
other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the Administrative Agent, on behalf of the Secured Parties, the Timber Manager and the Loan Parties agree to amend and restate the Original
Subordination Agreement as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1 Definitions.
The following terms when used in this Agreement, including its preamble and recitals, shall, except where the context otherwise requires, have the following meaning: 
 “Administrative Agent” is defined in the preamble. 
 “Agreement” is defined in the preamble. 
 “Bankruptcy Code” means Title 11 of the United States Code, as amended, supplemented, restated or otherwise modified from time to time, together with all rules and regulations promulgated thereunder. 
 “Borrower” and “Borrowers” are defined in the preamble. 

“Credit Agreement” is defined in the first recital. 
 “Discharge of the Obligations” means confirmation by the Administrative Agent of (a) payment in
full in cash of the principal of and interest (including interest accruing on or after the commencement of any Insolvency or Liquidation Proceeding at the rate set forth in the Credit Agreement, whether or not such interest would be allowed or
allowable in such Insolvency or Liquidation Proceeding) and premium, if any, on all Obligations outstanding under the Loan Documents; (b) payment in full in cash of all other Obligations (including monetary obligations incurred during the
pendency of any Insolvency or Liquidation Proceeding, regardless of whether such monetary obligations would be allowed or allowable in such proceeding) other than Unasserted Contingent Obligations; (c) termination or cash collateralization of
all Obligations under Rate Protection Agreements entered into by the Borrowers with any Lender (or any of its affiliates) in connection with the Credit Agreement (in an amount satisfactory to the Administrative Agent); and (d) termination of
all other commitments of the Lenders under the Loan Documents. 
 “Insolvency or Liquidation
Proceeding” means (a) any voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to any Loan Party or any parent or subsidiary of a Loan Party; (b) any other voluntary or involuntary insolvency,
reorganization or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or other similar case or proceeding with respect to any Loan Party or any parent or subsidiary of a Loan Party or with respect to any part of their
respective assets; (c) any liquidation, dissolution, reorganization or winding up of any Loan Party or any parent or subsidiary of a Loan Party whether voluntary or involuntary and whether or not involving insolvency or bankruptcy; or
(d) any assignment for

  

 - 2 - 

 
the benefit of creditors or any other marshalling of assets and liabilities of any Loan Party or any parent or subsidiary of a Loan Party. 
 “Lender” and “Lenders” are defined in the first recital. 

“Loan Documents” is defined in the Credit Agreement. 
 “Loan Party” and “Loan Parties” are defined in the preamble.

 “Loans” is defined in the first recital. 
 “Obligations” is defined in the Credit Agreement. 
 “Original Subordination Agreement” is defined in the preamble. 
 “Person” is defined in the Credit Agreement. 
 “Property” is defined in the second recital. 
 “Rate Protection Agreement” is defined in the Credit Agreement. 
 “Secured Parties” means, collectively, the Administrative Agent and the Lenders. 
 “Timber Manager” is defined in the preamble. 
 “Unasserted Contingent Obligations” means obligations for taxes, costs, indemnifications,
reimbursements, damages and other liabilities in respect of which no assertion of liability (whether oral or written) and no claim or demand for payment (whether oral or written) has been made (and, in the case of obligations for indemnification, no
notice for indemnification has been issued by the indemnitee) at such time. 
 “Wells
HBU” is defined in the preamble. 
 “Wells Partnership” is defined
in the preamble. 
 “Wells Management Agreement” is defined in the second
recital. 
 “Wells Timberland” is defined in the preamble. 
 “Wells TRS Subsidiary” is defined in the preamble. 
 SECTION 1.2 Certain Rules of Construction. Unless otherwise specified, references in this Agreement to any Article or Section
are references to such Article or Section of this Agreement, as the case may be. The words “herein,” “hereof” and “hereunder” and other words of similar import refer, as the context may require, to the relevant
agreement as a whole, including all annexes, exhibits and schedules, and not to any particular section, subsection or clause contained in such agreement, annex, exhibit or schedule. Wherever from the context it appears appropriate, each term stated
in either the singular or plural shall include the singular and

  

 - 3 - 

 
the plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, feminine and neuter genders. The words “including”, “includes” and
“include” shall be deemed to be followed by the words “without limitation”, and where general words are followed by a specific listing of items, the general words shall be given their widest meaning and shall not be limited by an
enumeration of specific matters; the word “or” is not exclusive; references to Persons include their respective successors and assigns (to the extent and only to the extent permitted by this Agreement) or, in the case of any governmental
authority, Persons succeeding to the relevant functions of such governmental authority; all references to any law shall include any amendments and successors of the same; all references to any agreement, instrument or document shall refer to each
such agreement, instrument or document as amended, restated, supplemented, modified, refinanced, replaced, extended or renewed from time to time (subject to any restrictions regarding the foregoing as may be set forth in this Agreement); and the
words “asset” and “property” shall have the same meaning and refer to tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 
 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES 
 SECTION 2.1 Wells Management Agreement, etc. Each of Wells
Partnership, Wells Timberland, Wells TRS Subsidiary, Wells HBU and the Timber Manager jointly and severally represents and warrants to the Administrative Agent, as of the date hereof, that the following are true and correct: 
 (a) the Timber Manager has agreed to act as manager of the Property pursuant to the Wells Management Agreement. The Loan
Parties have delivered a true, correct and complete copy of the Wells Management Agreement to the Administrative Agent; 
 (b) the entire agreement between the Timber Manager and the Loan Parties for the management of the Property is evidenced by the Wells Management Agreement; 
 (c) the Wells Management Agreement constitutes the valid and binding agreement of all of the parties thereto, enforceable in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by equitable principles;

 (d) all parties to the Wells Management Agreement have full authority under all state and local laws and
regulations to perform all of their respective obligations thereunder; and 
 (e) no party to the Wells
Management Agreement is in default in the performance of any of its obligations under the Wells Management Agreement, and all payments and fees required to be paid to the Timber Manager thereunder have been paid to the date hereof. 
 SECTION 2.2 Due Authorization, Validity, etc. (a) The Timber Manager is duly formed and validly existing under the laws
of its jurisdiction of formation; (b) the Timber Manager has the power and authority to enter into, execute, deliver and carry out the terms of this Agreement, all of which have been duly authorized by all proper and necessary action;
(c) the execution of this Agreement by the Timber Manager will not violate or conflict with the

  

 - 4 - 

 
organizational documents (if any) of the Timber Manager, any material agreement binding upon the Timber Manager or any law, regulation or order or require any consent or approval which has not
been obtained; and (d) this Agreement is the legal, valid and binding obligation of the Timber Manager, enforceable against the Timber Manager in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by equitable principles. 
 ARTICLE III 
 SUBORDINATION AND COVENANTS 
 Notwithstanding the terms of the Wells Management Agreement, the Timber Manager hereby covenants and agrees as follows:

 SECTION 3.1 Subordination of Wells Management Agreement to Liens of Lenders. The Wells Management Agreement and
all liens, rights and interests (whether choate or inchoate and including, without limitation, all mechanic’s and materialmen’s liens under applicable law) owed, claimed or held by the Timber Manager in and to the Property, if any
(regardless of the date, time, method, manner or order of grant, attachment or perfection of the foregoing and notwithstanding any provisions of the U.C.C. or other applicable law, the terms of the Loan Documents or any defect or deficiency in, or
failure to perfect, the Liens securing the Obligations or any other circumstance whatsoever (including any liens securing the Obligations being subordinated, voided, invalidated or lapsed)), are and shall be in all respects subordinate and inferior
to the liens and security interests created or to be created for the benefit of the Administrative Agent (on behalf of the Secured Parties) and securing the repayment of the Obligations. 
 SECTION 3.2 No Modifications of Wells Management Agreement. Notwithstanding anything to the contrary contained in the Wells Management Agreement, such agreement
shall not be amended, restated, supplemented or otherwise modified (including by consent or waiver) in any material respect without the prior consent of the Administrative Agent, such consent not to be unreasonably withheld, delayed or conditioned.

 SECTION 3.3 Lenders’ Rights to Confirm or Terminate Timber Management Agreement. 
 (a) If an Event of Default under the Credit Agreement shall have occurred and be continuing, the Administrative Agent shall
have the right in its sole discretion to either (i) terminate the Wells Management Agreement or (ii) assume all of the rights and obligations of Wells Timberland , Wells TRS Subsidiary and Wells HBU under the Wells Management Agreement.

 (b) Notwithstanding the termination of the Wells Management Agreement, none of the Secured Parties shall be
liable or responsible for the payment of any management fees or any other amounts due under the Wells Management Agreement. On the effective date of

  

 - 5 - 

 
termination of the Wells Management Agreement, the Timber Manager shall turn over to the Administrative Agent all books and records relating to the Property, together with such authorizations and
letters of direction addressed to tenants, suppliers, employees, banks and other parties as the Administrative Agent may reasonably require; and the Timber Manager shall cooperate with the Administrative Agent in the transfer of management
responsibilities to the Administrative Agent or its designee. 
 (c) If the Administrative Agent elects (an
“Assumption Election”) to assume all of the rights and obligations of Wells Timberland, Wells TRS Subsidiary and Wells HBU under the Wells Management Agreement, the Timber Manager shall, subject to Section 3.6, at the
request of the Administrative Agent, continue performance on behalf of the Secured Parties of all of the Timber Manager’s obligations under the terms of the Wells Management Agreement. Subject to the provisions of the next sentence with respect
to management fees and other amounts owed prior to an Assumption Election, the Assumption Election shall not amend or modify the Wells Management Agreement in any respect, and, after an Assumption Election, the Administrative Agent and the Timber
Manager shall have all rights and responsibilities under the Wells Management Agreement as if the Assumption Election had not been made. Notwithstanding anything to the contrary appearing in this Agreement, none of the Secured Parties shall be
liable or responsible for the payment of any management fees or any other amounts due under the Wells Management Agreement for the period prior to an Assumption Election, which fees and other amounts shall be the sole responsibility of Wells
Timberland, Wells TRS Subsidiary or Wells HBU to pay. 
 SECTION 3.4 Assignment of Leases, Contracts, Rents and
Profits. The Timber Manager acknowledges that, as further security for the Obligations, the Borrowers and the other Loan Parties, as applicable, have executed and delivered to the Administrative Agent, a first priority perfected
security interest in the Property, including all amounts payable with respect thereto pursuant to certain leases, timber cutting agreements, stumpage agreements, licenses, permits and other agreements or instruments. 
 SECTION 3.5 No Lender Obligation. None of the Secured Parties have any obligation to the Timber Manager with respect to the
Loan Documents. 
 SECTION 3.6 Lenders Not Obligated Under the Wells Management Agreement. The Timber Manager
agrees that Secured Parties shall in no event have any liability or obligation for payment or performance in favor of the Timber Manager under the Wells Management Agreement unless and to the extent the Administrative Agent assumes the rights and
obligations of Wells Timberland, Wells TRS Subsidiary and Wells HBU under the Wells Management Agreement as provided in clause (c) of Section 3.3, in which case the Secured Parties shall pay, as and when required by the terms
of the Wells Management Agreement, the amounts owing to the Timber Manager from and after the date of such assumption. 
 SECTION 3.7 Timber Manager’s Waivers. All of the Obligations shall be deemed to have been made, incurred and continued in material reliance upon this Agreement. The Timber Manager agrees that: (a) the Secured
Parties have made no warranties or representations with respect to the due execution, legality, validity, completeness or enforceability of the Loan Documents, or any other documents executed in connection therewith, or the collectibility of the

  

 - 6 - 

 
Obligations; (b) the Secured Parties shall have no fiduciary duty to the Timber Manager under this Agreement; (c) the Secured Parties shall be entitled to manage and supervise Loans and
other credit extensions to the Loan Parties in accordance with their usual practices, modified from time to time as they deem appropriate under the circumstances, without regard to the existence of any rights that the Timber Manager may now or
hereafter have in or to any of the assets of the Loan Parties; and (d) the Secured Parties shall have no liability to the Timber Manager for, and the Timber Manager waives any claim which it may now or hereafter have against, the Secured
Parties arising out of any and all actions which the Secured Parties, in good faith, take or omit to take with respect to the Obligations or pursuant to this Agreement. 
 SECTION 3.8 No Waiver of Subordination Provisions. No right of any present or future Secured Party to enforce the subordination provisions provided herein shall at any time be
prejudiced or impaired in any manner by any act or failure to act on the part of any Loan Party or the Timber Manager, by any act or failure to act by any Secured Party, or by any noncompliance by any Loan Party or the Timber Manager with the terms,
provisions and covenants of this Agreement, regardless of any knowledge thereof any Secured Party may have or be otherwise charged with. 
 ARTICLE IV 
 MODIFICATION; REFINANCINGS 
 SECTION 4.1 No Restrictions Regarding Modifications to Loan Documents. The Secured Parties may at any time and from
time to time without the prior consent of the Timber Manager, without incurring liability to the Timber Manager and without impairing or releasing the obligations of the Timber Manager under this Agreement, change the manner or place of payment or
extend, release, renew, compromise or postpone the time of payment of or renew or alter any of the terms of the Obligations, or amend, restate, supplement or otherwise modify (including by consent or waiver) in any manner any agreement, note,
guaranty or other instrument evidencing or securing or otherwise relating to the Obligations. 
 SECTION 4.2
Refinancings. Upon any refinancing of the Obligations, (a) the refinanced amount shall constitute the Obligations, (b) the holders of the refinanced amount shall constitute the Lenders, (c) the principal documents
governing the refinanced amount shall constitute the Credit Agreement and the documents and instruments executed in connection therewith shall constitute the Loan Documents, and (d) the Person to whom liens on the Collateral are granted to
secure the refinanced amount shall constitute the Administrative Agent. 
 ARTICLE V 
 MISCELLANEOUS 
 SECTION 5.1 Effectiveness; Continuing Nature of this Agreement. 
 (a) This Agreement
shall become effective when counterparts hereof have been duly executed and delivered among the parties thereto. This is a continuing agreement of subordination and the Secured Parties may continue, at any time and without notice to the Timber
Manager, to extend credit and other financial accommodations and lend monies to or for the benefit of the Borrowers or any other Loan Party constituting Obligations in reliance hereof. 
  

 -7- 

 (b) The terms of this Agreement, the subordination effected hereby and the
rights and the obligations of the Timber Manager, the Secured Parties arising hereunder, shall not be affected, modified or impaired in any manner or to any extent by: (i) any amendment or modification of or supplement to the Loan Documents, or
any refinancing thereof; (ii) the validity or enforceability of any of such documents; or (iii) any exercise or non-exercise of any right, power or remedy under or in respect of the Obligations. The Timber Manager hereby acknowledges that
the provisions of this Agreement are intended to be enforceable at all times, whether before the commencement of, after the commencement of, in connection with or premised on the occurrence of an Insolvency or Liquidation Proceeding. 
 SECTION 5.2 Modification. Any modification or waiver of any provision of this Agreement, or any consent to any departure by
any party from the terms hereof, shall not be effective in any event unless the same is in writing and signed by the Administrative Agent, the Timber Manager and each Loan Party, and then such modification, waiver or consent shall be effective only
in the specific instance and for the specific purpose given. Any notice to or demand on any party hereto in any event not specifically required hereunder shall not entitle the party receiving such notice or demand to any other or further notice or
demand in the same, similar or other circumstances unless specifically required hereunder. 
 SECTION 5.3 Notices.
Unless otherwise specifically provided herein, any notice or other communication delivered under this Agreement shall be in writing addressed to the respective party as set forth below and may be personally served, telecopied or sent by overnight
courier service or certified or registered United States mail and shall be deemed to have been given (a) if delivered in person, when delivered; (b) if delivered by telecopy, on the date of transmission if transmitted on a business day
before 5:00 p.m. (New York City time) or, if not, on the next succeeding business day; (c) if delivered by overnight courier, one business day after delivery to such courier properly addressed; or (d) if by United States mail, four
business days after deposit in the United States mail, postage prepaid and properly addressed. 
 Notices shall
be addressed as follows: 
 If to the Administrative Agent: 
 CoBank, ACB, as Administrative Agent 
 5500 S. Quebec Street 
 Greenwood Village,
Colorado 80111 
 Attention: Syndications Coordinator, Corporate Finance Division 
 Telecopier No. 303-694-5830 
 If to the Timber Manager: 
 Forest Resource
Consultants, Inc. 
 717 North Avenue 
 Macon, Georgia 31211 
 Attn: David Foil

  

 - 8 - 

 If to Wells Timberland or any other Loan Party: 
 c/o Wells Timberland REIT, Inc. 
 6200 The Corners Parkway 
 Norcross, Georgia
30092 
 Attention: Don Warden, Manager of Timberland Operations 
 Telecopier No.: 770-243-8286 
 or in any case, to such other address as the party addressed shall have previously designated by notice to the serving party, given in accordance with this Section. 
 SECTION 5.4 Successors and Assigns. This Agreement shall inure to the benefit of, and shall be binding upon, the
respective successors and assigns of the Secured Parties, the Timber Manager and each Loan Party. The Secured Parties may, from time to time, without notice to the Timber Manager, assign or transfer any or all of the Obligations or any interest
therein to any Person and, notwithstanding any such assignment or transfer, or any subsequent assignment or transfer, the Obligations shall, subject to the terms hereof, be and remain Obligations for purposes of this Agreement, and every permitted
assignee or transferee of any of the Obligations or of any interest therein shall, to the extent of the interest of such permitted assignee or transferee in the Obligations, be entitled to rely upon and be the third party beneficiary of the
subordination provided under this Agreement and shall be entitled to enforce the terms and provisions hereof to the same extent as if such assignee or transferee were initially a party hereto. 
 SECTION 5.5 Relative Rights. This Agreement shall define the relative rights of the Secured Parties, on the one hand, and the Timber Manager, on the other hand.
Nothing in this Agreement shall (a) impair, as among the Secured Parties, on the one hand, and as among the Loan Parties and the Timber Manager, on the other hand, the obligations of the Loan Parties with respect to the payment of the
Obligations in accordance with their respective terms or (b) affect the relative rights of the Secured Parties with respect to any other creditors of the Loan Parties. 
 SECTION 5.6 Conflict. In the event of any conflict between any term, covenant or condition of this Agreement and any term, covenant or condition of the Wells
Management Agreement, on the one hand, and the terms of this Agreement, on the other hand, the provisions of this Agreement shall control and govern. 
 SECTION 5.7 Headings. The various headings of this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any provisions
hereof. 
 SECTION 5.8 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 SECTION 5.9
Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining

  

 - 9 - 

 
provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 
 SECTION 5.10 Continuation of Subordination; Termination of Agreement. This Agreement shall remain in full force and effect until the earlier of (i) the
termination of the Wells Management Agreement and (ii) the Discharge of the Obligations, at which date this Agreement shall terminate without further action on the part of the parties hereto. 
 SECTION 5.11 Applicable Law; Entire Agreement. THIS AGREEMENT SHALL EACH BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK. This Agreement constitutes the entire understanding among the parties hereto with respect to the subject matter hereof and supersede any prior agreements, written or oral, with respect thereto. 
 SECTION 5.12 Action by Parties Hereto. Any consent, approval, waiver, request, notice or other action permitted or
required by this Agreement to be provided by the Secured Parties shall be deemed so provided if evidenced in a writing signed by the Administrative Agent, and the Timber Manager shall be entitled to rely upon any such writing as valid, binding and
enforceable against the Secured Parties without any requirement for verification of Administrative Agent’s authority therefor. 
 SECTION 5.13 Cumulative Rights. Each and every right, remedy and power granted to the Administrative Agent hereunder shall be cumulative and in addition to any other right, remedy or power specifically granted herein, in the
Loan Documents, as the case maybe, or now or hereafter existing in equity, at law, by virtue of statute or otherwise, and may be exercised by the Administrative Agent, from time to time, concurrently or independently and as often and in such order
as the Administrative Agent in exercising any such right, remedy or power, or abandonment or discontinuance of steps to enforce the same, shall not operate as a waiver thereof or affect the Administrative Agent’s right thereafter to exercise
the same, and any single or partial exercise of any such right, remedy or power shall not preclude any other or further exercise thereof or the exercise of any other right, remedy or power, and no such failure, delay, abandonment or single or
partial exercise of the Administrative Agent’s rights hereunder shall be deemed to establish a custom or course of dealing or performance among the parties hereto. 
 SECTION 5.14 Specific Enforcement. THIS AGREEMENT IS INTENDED FOR THE BENEFIT OF, AND SHALL BE ENFORCEABLE DIRECTLY BY, THE ADMINISTRATIVE AGENT, ON BEHALF OF THE SECURED PARTIES. THE TIMBER
MANAGER ACKNOWLEDGES AND AGREES THAT THE TERMS OF THIS AGREEMENT ARE A MATERIAL INDUCEMENT TO THE SECURED PARTIES TO MAKE THE OBLIGATIONS AVAILABLE TO THE LOAN PARTIES, THAT THE SECURED PARTIES WOULD NOT HAVE MADE THE OBLIGATIONS AVAILABLE TO THE
LOAN PARTIES WITHOUT THE BENEFIT OF THE PROVISIONS CONTAINED IN THIS AGREEMENT, AND THAT THE TIMBER MANAGER IS RECEIVING SUBSTANTIAL BENEFITS AS A RESULT OF THE SECURED PARTIES MAKING THE OBLIGATIONS AVAILABLE TO THE LOAN PARTIES. ACCORDINGLY, THE
ADMINISTRATIVE AGENT, ON BEHALF OF THE SECURED PARTIES, IS HEREBY AUTHORIZED TO DEMAND SPECIFIC PERFORMANCE OF THE PROVISIONS OF THIS AGREEMENT AT ANY TIME WHEN THE TIMBER

  

 - 10 - 

 
MANAGER SHALL HAVE FAILED TO COMPLY WITH ANY OF SUCH PROVISIONS APPLICABLE TO IT. THE TIMBER MANAGER HEREBY IRREVOCABLY WAIVES ANY DEFENSE BASED ON THE ADEQUACY OF A REMEDY AT LAW THAT MIGHT BE
ASSERTED AS A BAR TO SUCH REMEDY OF SPECIFIC PERFORMANCE, IT BEING AGREED THAT THE SECURED PARTIES WILL SUFFER IRREPARABLE HARM IF THE TERMS OF THIS AGREEMENT ARE NOT STRICTLY ENFORCED IN ACCORDANCE WITH ITS TERMS. 
 SECTION 5.15 Effectiveness During Insolvency or Liquidation Proceeding. The provisions of this Agreement shall continue
in full force and effect notwithstanding any Insolvency or Liquidation Proceeding. 
 SECTION 5.16 No
Novation. The amendment and restatement of the Original Subordination Agreement by this Agreement shall not constitute a novation or termination of the obligations and covenants of the parties thereto, but shall constitute an
amendment and restatement of the obligations and covenants of the parties thereto and each party to the Original Subordination Agreement hereby reaffirms all such obligations and covenants under the Original Subordination Agreement as amended and
restated hereby. 
 [Signature pages follow] 
  

 - 11 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their duly authorized representatives, as of the day and year first above written. 
  

					
	 COBANK, ACB, as Administrative Agent

		
	 By:
	 	  

		 	 Name:
	 	 Michael Tousignant

		 	 Title: 
	 	 Vice President

	
	 FOREST RESOURCE CONSULTANTS, INC.

		
	 By:
	 	  

		 	 Name:
	 	 David T. Foil

		 	 Title:
	 	 President

 [Signatures continue on following page] 
 TIMBER MANAGER SUBORDINATION
AGREEMENT 
 SIGNATURE PAGE 1 

					
	 LOAN PARTIES

	
	TIMBERLANDS II, LLC
		
	By:	 	WELLS TIMBERLAND MANAGEMENT ORGANIZATION, LLC, its Manager
		
	By:	 	  

		 	Name:	 	Brian M. Davis
		 	Title:	 	Senior Vice President & Chief Financial Officer
	
	WELLS TIMBERLAND OPERATING PARTNERSHIP, L.P.
		
	By: 	 	WELLS TIMBERLAND REIT, INC., its General Partner
		
	By:	 	  

		 	Name:	 	Douglas P. Williams
		 	Title:	 	Executive Vice President, Secretary & Treasurer
	
	WELLS TRS HARVESTING OPERATIONS, LLC
		
	 By:
	 	FOREST RESOURCE CONSULTANTS, INC., its Manager
		
	By:	 	  

		 	Name:	 	David T. Foil
		 	Title:	 	President

 TIMBER
MANAGER SUBORDINATION AGREEMENT 
 SIGNATURE PAGE 2

					
	WELLS TIMBERLAND HBU, LLC
		
	By:	 	 WELLS TIMBERLAND MANAGEMENT ORGANIZATION, LLC, its Manager

		
	By:	 	  

		 	Name:	 	Brian M. Davis
		 	Title:	 	Senior Vice President & Chief Financial Officer

 TIMBER MANAGER SUBORDINATION AGREEMENT 
 SIGNATURE PAGE 3

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