Document:

ASSIGNMENT OF NET PROFITS INTEREST

        This Assignment of Net Profits Interest (this “Assignment”) is dated and effective as of 7:00 a.m. Houston, Texas time, September 17 , 2010 (the “Effective Date”), by Daybreak Oil and Gas, Inc., a Washington Corporation
        (“Assignor”), to Well Works, LLC, a Utah Limited Liability Company (“Assignee”).

        WHEREAS, Assignor is the owner of working interests in certain oil and gas leases (collectively, the “Leases”) described in the Exhibit hereto insofar as the Leases cover the lands known as East Slopes, located in Kern County, California (collectively, the “Subject
        Properties”).

        WHEREAS, Assignor desires to assign and to convey to Assignee a certain interest (“Net Profits Interest”) in the oil and gas produced from the Leases that constitute the Subject Properties measured by and equivalent to two percent (2%) of the Net Profits, as hereinafter defined, realized by Assignor from
        such production.

        1.

        GRANTING PROVISION

        For and in consideration of One Hundred Dollars ($100.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor does, subject to the terms and provisions of this Assignment, hereby ASSIGN, and CONVEY to Assignee the Net Profits Interest in and to the oil and gas produced from the Leases that constitute the
        Subject Properties measured by and equivalent to two percent (2%) of the Net Profits realized by Assignor on such production, effective for all purposes as of the Effective Date. 

         

        

        

        

        TO HAVE AND TO HOLD the Net Profits Interest unto Assignee, its successors and assigns, subject however, to the further provisions of this Assignment.

        2.

        CALCULATION, CHARACTERISTICS, AND 

        DISBURSEMENT OF NET PROFITS INTEREST

        2.1       For purposes of calculating the Net Profits Interest, Assignor shall, commencing as of the Effective Date, create and maintain an account for the Subject Properties (the “Net Profits Account”) in accordance
        with the terms of this Assignment and good accounting practices that shall set forth the charges and credits made thereto by Assignor pursuant to this Assignment on a calendar month basis. Assignor shall furnish to Assignee, within thirty (30) days after the end of each calendar quarter, commencing with the calendar quarter that ends on December 31, 2010 a report, in form and substance reasonably satisfactory to Assignee, that sets forth the charges and credits made to the Net Profits
        Account through the end of each relevant calendar month that occurs during a calendar quarter, with the initial report to also include the calendar month of September 2010.

        2.2       For purposes of this Assignment, the term “Net Profits” shall mean an amount determined for each calendar month during the existence of the Net Profits Interest, commencing with the month in which the
        Effective Date occurs, by (a) deducting the aggregate of any negative balance existing in the Net Profits Account on the Effective Date, with respect to the month of September 2010, and thereafter on the first day of each succeeding month during the existence of the Net Profits Interest, plus the total charges made thereto during each such month or part thereof, as applicable, from (b)
        the total credits properly made thereto during such calendar month. To the extent that the aggregate charges exceed aggregate credits at the end of 

         

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        any such month, such excess charges shall be carried forward to the succeeding month. All payments, if any, made to Assignee on account of the Net Profits Interest shall be made entirely and exclusively out of the sums credited to the Net Profits Account pursuant to Section ?2.3 hereof. 

        2.3       For each calendar quarter, during the existence of the Net Profits Interest, the Net Profits Account shall be credited with an amount equal to the sum of the proceeds (or the market value as determined by Assignor of any proceeds not received in the form of cash or cash
        equivalents) actually received during such calendar quarter by Assignor from the sale or other disposition of Assignor’s working interest share of all hydrocarbons produced from or attributable to the Subject Properties from and after the Effective Date, after first deducting therefrom those costs attributable to all royalties, overriding royalties, production payments, net profits interests (other than the Net Profits Interest contemplated hereby), and other burdens upon,
        measured by, or payable out of production from or attributable to Assignor’s interest in the Subject Properties that exist as of the Effective Date. 

        2.4       Throughout each calendar quarter during the existence of the Net Profits Interest, there shall be charged against the Net Profits Account an amount equal to the sum of the following items of cost and expense actually incurred by Assignor during such calendar quarter from
        and after the Effective Date, insofar only as such items of cost and expense are attributable to the interest of Assignor in the Subject Properties, are allocable to the Subject Properties and the production and marketing of hydrocarbons therefrom, have not previously been deducted by Assignor, and do not arise from or relate to the gross negligence or willful misconduct of Assignor:

         

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                        (a)

                    	
                        all costs and expenses incurred by Assignor in the exploration, development operation and maintenance of the Subject Properties and the production and marketing of hydrocarbons therefrom, such items of cost to include, without limitation: (i) all costs of complying with applicable local, state, and federal statutes, ordinances, rules,
                        and regulations; (ii) all costs of drilling, reworking, plugging back, deepening, sidetracking, testing, completing, equipping and operating all wells located on the Subject Properties, and all costs of lifting and producing hydrocarbons from the Subject Properties, including all costs of labor, fuel, equipment (rental and purchase), repairs, hauling, materials, supplies, utility charges, and other costs incident thereto; (iii) all costs of gathering, compressing,
                        dehydrating, separating, treating, processing, transporting, and marketing hydrocarbons produced from the Subject Properties, including the costs of constructing and maintaining flow lines and gathering lines necessary in connection with gathering, processing and marketing production from the Subject Properties; (iv) all direct and indirect overhead charges and operating charges incurred and paid by Assignor, pursuant to joint operating agreements or to others for
                        services rendered in conducting operations thereon (provided, however, it being explicitly agreed that there shall not be charged against the Net Profits Account interest, fees, costs or charges for borrowed funds); (v) all bonuses, delay rentals, shut-in payments, minimum royalties, royalties and other payments made in connection with the maintenance of the Leases that comprise the Subject Properties; (vi) the costs of all other servicing operations, to the extent not
                        within the scope of the costs and expenses addressed above; (vii) the cost of all fluid 

                    

        

         

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        injection, pressure maintenance, secondary recovery, recycling, and other enhanced recovery operations; and (viii) the costs of plugging, abandoning and decommissioning any wells (and associated operations) now or hereafter located on the Subject Properties;

        
            	
                         

                    	
                        (b)

                    	
                        the expenses of Assignor associated with litigation, arbitration, mediation, collections, satisfaction of liens burdening the Subject Properties, satisfaction of judgments and liabilities associated with the Subject Properties, and claims incurred and paid by Assignor on account of its working interest ownership of the Subject
                        Properties, or incident to the operation or maintenance thereof;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        all taxes (except for income taxes of Assignor) paid by Assignor in connection with the Subject Properties, including, without limitation, ad valorem, property, production, severance, gathering, windfall profits, occupation, California Franchise and any
                        other taxes assessed against or attributable to the Subject Properties or hydrocarbons produced therefrom; provided, however, that if Assignee bears taxes individually which are not assessed against or attributable to the Subject Properties, the taxes which Assignee bears individually shall not be charged to the Net Profits Account; and

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        insurance premiums paid by Assignor on account of its working interest ownership and operation of the Subject Properties for insurance relating to the Subject Properties or any part thereof, together with all expenditures incurred and paid in settlement of any and all losses, claims, damages, judgments and other expense, including
                        legal services (attorneys fees and disbursements) relating to the Subject Properties or operations thereon.

                    

        

         

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        2.5       Assignee shall never be personally responsible for the payment of any part of the costs and expenses charged against the Net Profits Account nor, in its capacity as the owner of the Net Profits Interest, f?? any liabilities incurred in connection with the development,
        exploration, equipping, and operation of the Subject Properties. ASSIGNOR HEREBY COVENANTS AND AGREES TO INDEMNIFY AND TO HOLD HARMLESS ASSIGNEE, AND ITS SUCCESSORS AND ASSIGNS FROM AND AGAINST ANY AND ALL SUCH RESPONSIBILITY AND LIABILITY, EXCEPT TO THE EXTENT SUCH RESPONSIBILITY AND LIABILITY ARISES OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ASSIGNEE.

        2.6       As between Assignor and Assignee, Assignor shall have exclusive charge and control of the marketing of all hydrocarbons allocable to the Net Profits Interest. Assignor shall market the production allocable to the Net Profits Interest with and on the same terms as
        Assignor’s share of production from the Subject Properties, and shall collect and receive the proceeds from the sale of all such production.

        2.7       To the extent that, at the end of any calendar quarter after the Effective Date, there exists a credit balance in the Net Profits Account, Assignor shall pay to Assignee, within thirty (30) days after the end of the relevant calendar quarter, the Net Profits that have
        accrued to the Net Profits Interest as of the end of such calendar quarter. 

        3.

        GENERAL COVENANTS AND PROVISIONS

        3.1       Assignor agrees, to the extent that Assignor controls such matters: (a) to comply with the terms and provisions of the Leases; (b) to conduct, or to use reasonable efforts to cause 

         

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        to be conducted, all operations that are conducted with respect to the Subject Properties that Assignor operates with reasonable and prudent business judgment and in accordance with good oilfield practices, the provisions of the Leases, and all applicable federal, state, and local statutes, ordinances, rules, and regulations; (c) to cause all wells located on the Subject Properties
        that Assignor operates to be operated in a good, prudent, and workmanlike manner and to cause all improvements and equipment reasonably necessary or useful to the operation thereof to be provided; and (d) otherwise to cause to be done all that a prudent operator (if Assignor operates) would, subject as hereinafter provided, do with respect to the Subject Properties to the end that the Leases are maintained in full force and effect and each well located on the Subject Properties that is
        capable of producing hydrocarbons in paying quantities shall, subject to applicable law, be produced to maximize the return both to Assignor and Assignee. Notwithstanding the foregoing, nothing herein contained shall obligate Assignor, however, to continue to operate any well when the well ceases to produce, or is not capable of producing hydrocarbons in paying quantities or to conduct any other operations to which Assignor elects not to participate or to conduct. Assignor shall on
        reasonable request promptly furnish Assignee on a confidential basis with any and all information in Assignor’s possession and pertaining to the Subject Properties that Assignor is permitted to disclose.

        3.2       Assignor agrees to maintain at all times true and correct books and records sufficient to determine the amounts payable, if any, to Assignee hereunder and such books and records shall be open to Assignee for inspection and audit upon reasonable notice during normal
        business hours, but in no event more than twice in any calendar year. 

        3.3       Assignee hereby agrees that the owner of the Subject Properties shall have the right, without approval by Assignee, to pool and unitize the Subject Properties and the Leases 

         

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        and lands affected thereby, or portions thereof, with other lands or leases to form one or more pooled units in accordance with the pooling authority granted in the Leases, or any agreement subsequently obtained with respect to the Subject Properties from any lessor with reference to pooling, and the applicable rules and regulations of any state or federal governmental authority having
        jurisdiction over the Subject Properties. As to each unit so created, Assignee shall be entitled to receive, in lieu of the Net Profits Interest created herein with respect to the relevant Lease, either (a) that proportion of the Net Profits Interest that the amount of surface acreage affected thereby and placed in the relevant unit bears to the entire surface acreage of such unit, or (b) if participation in the relevant unit is determined by reference to factors other than the number
        of surface acres covered by each lease included therein, the portion of the Net Profits Interest attributable to the participation of the Subject Properties in the relevant unit. In addition, if any state or federal governmental authority having jurisdiction over the Leases orders the revision of any unit subject hereto, Assignor and Assignee hereby agree to execute such additional documents as may be reasonably necessary to vest Assignee with record title to an interest in and to the
        Leases or production therefrom, insofar as the Leases cover and relate to the relevant unit as so revised, consistent with the intents and purposes of this Assignment.

        3.4       If any of the Leases covers an interest in the lands covered thereby that is less than the entire mineral estate therein (regardless of whether the relevant Lease purports to cover only the lessor’s interest therein), then, as to such Lease, the Net Profits
        Interest, insofar only as it affects and applies to hydrocarbons produced from or attributable to such portion of the lands covered by such Lease, shall be payable to Assignee in the proportion that the mineral interest in such lands actually covered by the relevant Lease bears to the entire, undivided mineral estate in such lands. Similarly, if Assignor owns less than the full leasehold estate in and to any of the 

         

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        Leases, then, as to such Lease, the Net Profits Interest, insofar only as it affects and applies to hydrocarbons produced from or attributable to such Lease, shall be payable to Assignee in the proportion that the aggregate leasehold interest in the relevant Lease actually owned by Assignor bears to the entire leasehold interest in and to such Lease.

        3.5       All of the covenants of Assignor and Assignee herein contained shall be covenants running with the land, and this Assignment and the covenants herein contained shall inure to the benefit of and be binding upon the successors and assigns of Assignor and the successors and
        assigns of Assignee.

        3.6       This Assignment may be executed in any number of counterparts, and each counterpart hereof shall be deemed to be an original instrument, but all counterparts shall constitute but one Assignment.

        3.7       No waiver of any of the provisions of this Assignment shall be deemed or constitute a waiver of any other provision of this Assignment, nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

        3.8       THIS ASSIGNMENT AND THE LEGAL RELATIONS BETWEEN THE PARTIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO SUCH STATE’S CONFLICTS OF LAW PRINCIPLES OTHERWISE APPLICABLE TO SUCH
        DETERMINATIONS.

         

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        3.9       This Assignment constitutes the entire agreement among the parties pertaining to the subject matter hereof, and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties pertaining to the subject matter
        hereof.

        3.10     This Assignment may be amended or modified only by an agreement in writing executed by both parties.

        3.11     Both parties agree that a Memorandum of this Assignment will be filed of record in the counties where the Subject Properties are located.

        EXECUTED as of the 17th day of September 2010, but effective as of the Effective Date.

        	 	
                    ASSIGNOR:

                
	 	 	 
	 	Daybreak Oil and Gas, Inc.	 
	 	 	 	 
	 	By:	/s/James F. Westmoreland	 
	 	 	 	 
	 	Name:	James F. Westmoreland	 
	 	 	 	 
	 	Title:	President and Chief Executive Officer	 

         

        
            	
                        STATE OF TEXAS

                    	
                        §

                    

        

        
            	
                         

                    	
                        §

                    

        

        
            	
                        COUNTY OF HARRIS

                    	
                        §

                    

        

        This instrument was acknowledged before me on the _________ day of September, 2010, by ________________________, ______________________ of Assignor, on behalf of said company.

    (Seal/Stamp)

        	 	 	 
	 	Notary Public, State of Texas	 

         

         

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                    ASSIGNEE:

                
	 	 	 
	 	Well Works, LLC	 
	 	 	 	 
	 	By:	/s/ Eric Hale	 
	 	 	 	 
	 	Name:	Eric Hale	 
	 	 	 	 
	 	Title:	Managing Member	 

         

        
            	
                        STATE OF _______________

                    	
                        §

                    

    

        
            	
                         

                    	
                        §

                    

        

        
            	
                        COUNTY OF ______________

                    	
                        §

                    

        

        This instrument was acknowledged before me on the _________ day of September, 2010, by ________________________, ______________________ of Assignee, on behalf of said company.

    (Seal/Stamp)

        	 	 	 
	 	Notary Public, THE STATE OF ________________	 

         

         

         

        

        

        

        EXHIBIT

        TO THAT CERTAIN ASSIGNMENT

        OF

        NET PROFITS INTERESTS

        Description of LeasesDC9353.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
Exhibit 4.1

AMENDED AND RESTATED SHARE REDEMPTION PROGRAM

     The board of directors (the “Board”) of Wells Real Estate Investment Trust II, Inc., a Maryland corporation (the
“Company”), has adopted this Amended and Restated Share Redemption Program (the “SRP”), the terms and
conditions of which are set forth below. Capitalized terms shall have the same meaning as set forth in the Company’s charter unless otherwise defined herein.

     1. Share Redemption. Subject to the terms and conditions of this SRP, including the limitations on redemptions set forth in paragraph 3 and
the procedures for redemption set forth in paragraph 4, the Company will redeem such number of shares of the Company’s Common Stock 

(“Shares”) as requested by a stockholder or the authorized representative of a stockholder.

     2. Redemption Price. The price at which the Company will redeem a Share depends on whether the redemption is sought within two years of a
stockholder’s death or Qualifying Disability (as defined in paragraph 6 below) or in connection with a stockholder’s (or stockholder’s spouse) qualifying for federal assistance for confinement to a Long-Term Care Facility (as defined
in paragraph 7 below) (collectively, a “Special Redemption”). The redemption of a Share that is not a Special Redemption is referred to herein as an “Ordinary Redemption.”

     a. The price that the Company will pay to redeem a Share pursuant to an Ordinary Redemption is as follows:

     i. prior to the date on which the Company publishes an estimated per Share value based in part on an estimate of the value of the Company’s assets (as opposed to an estimate based solely on the
most recent price paid for a Share in a public offering of Shares) (the “Net Asset Value Publication Date”), 60.0% of the price at which the Share was originally issued by the Company (as adjusted for any stock dividends, combinations,
splits, recapitalizations and the like with respect to the Shares) less the aggregate distributions per Share of any net sale proceeds from the sale of one or more of the Company’s assets, or other special distributions so designated by the
Board, distributed to stockholders prior to the Redemption Date (as defined below); and

     ii. on or after the Net Asset Value Publication Date, 95.0% of the estimated per Share value. 

     b. The price that the Company will pay to redeem a Share in relation to a Special Redemption is as follows:

     i. prior to the Net Asset Value Publication Date, the price paid to acquire the Share from the Company; and

     ii. on or after the Net Asset Value Publication Date, the estimated per share value of the Common Stock, as determined by the Company’s advisor or another firm chosen for that purpose.

     The Net Asset Value Publication Date is expected to occur no later than 18 months after the termination of an offering of Shares by the Company if no other public offering of Shares commences within
such 18-month period. An “offering” referred to in the foregoing sentence shall not include offerings on behalf of selling stockholders or offerings related to any dividend reinvestment plan, employee benefit plan, or the redemption of
interests in Wells Operating Partnership II, L.P., the Company’s operating partnership. On or after the date on which the Company completes its offering stage, the Company will report the redemption price in its annual report and three
quarterly reports publicly filed with the Securities and Exchange Commission.

     3. Limitations on Redemption. Notwithstanding anything contained in this SRP to the contrary, the Company’s obligation to redeem Shares
pursuant to paragraph 1 hereof is limited as follows:

     a. The Company will not redeem Shares from those who purchased their Shares from another stockholder if the date of such purchase is after the date of the announcement of the amendments to this SRP
approved on July 21, 2010. A “purchase” shall not include transfers by gift, transfers by inheritance, intrafamily transfers, transfers as a result of family dissolutions, transfers to affiliates and transfers by operation of law. For the
avoidance of doubt, once Shares are transferred for value by a stockholder, if such transfer occurs after the date of the announcement referenced above, the transferee and all subsequent holders of the Shares are not eligible to participate in this
SRP.

     b. Except as set forth in paragraph 5(a) below, the Company will not make an Ordinary Redemption of a Share until such Share has been issued and outstanding for at least one year, provided that, if
the Company is redeeming all of a stockholder’s Shares, then the Company will redeem Shares purchased by such stockholder pursuant to the Company’s dividend reinvestment plan even if such Shares have not been issued and outstanding for at
least one year.

     c. The Company will not redeem Shares on any Redemption Date to the extent that such redemptions would cause the total number of Shares redeemed (excluding those within two years of a
stockholder’s death) during the then-current calendar year to exceed 5% of the weighted-average number of Shares outstanding in the prior calendar year. Redemption requests precluded by this limit will not be considered for the limit
below.

     d. The Company will not redeem Shares on any Redemption Date to the extent that such redemption would cause both (i) the aggregate amount paid for all redemptions (including those within two years of
a stockholder’s death) during the then-current calendar year to exceed 100% of the net proceeds from the Company’s dividend reinvestment plan during such calendar year, and (ii) the total number of all Shares redeemed (including those
within two years of a stockholder’s death) during the then-current calendar year to exceed 5% of the weighted-average number of Shares outstanding in the prior calendar year.

e. No Ordinary Redemptions shall be effected before September 30, 2010.

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     4. Procedures for Redemption. The Company will redeem Shares on the last business day of each month (each such date, a “Redemption Date”) and in all events on a date other than a dividend payment date. For a stockholder’s Shares to be eligible for redemption on a given Redemption Date, the Company must receive a
written redemption request from the stockholder or from an authorized representative of the stockholder setting forth the number of Shares requested to be redeemed at least five business days before the Redemption Date. If the Company cannot
repurchase all Shares presented for redemption in any month because of the limitations on redemption set forth in paragraphs 3(a) and (b), then the Company will honor redemption requests on a pro rata basis, except that (a) if a pro rata redemption
would result in a stockholder owning less than half of the minimum amount required by applicable state law (the “Minimum Purchase Requirement”), then the Company would redeem all
of such stockholder’s Shares, and (b) if a pro rata redemption would result in a stockholder owning more than half but less than all of the Minimum Purchase Requirement, then the Company would not redeem any Shares that would reduce a
stockholder’s ownership of Shares below the Minimum Purchase Requirement.

     If the Company does not completely satisfy a redemption request at month-end because the Company did not receive the request in time or because of the limitations on redemption set forth in paragraphs
3(a) and (b), then the Company will treat the unsatisfied portion of the redemption request as a request for redemption at the next Redemption Date on which funds are available for redemption, unless the redemption request is withdrawn; provided,
however, that unsatisfied requests for Ordinary Redemptions received prior to the date on which the Company notifies its stockholders of the amendments set forth in this SRP which were approved on July 21, 2010, shall be treated as withdrawn in
light of the change in redemption price effected by the amendment. Any stockholder can withdraw a redemption request by sending written notice to the Company at the address set forth in paragraph 8, provided such notice is received before the
Redemption Date.

     5. Provisions Relating to Special Redemptions. Notwithstanding anything herein to the contrary, the Company will treat Special Redemption
requests differently than Ordinary Redemptions, as follows:

     a. There is no requirement that Shares be issued and outstanding for at least one year before being redeemed; and

b. The special redemption pricing terms set forth in paragraph 2.b. will

	
apply.

     Except as specifically set forth in paragraph 3 and this paragraph 5, Special Redemptions are subject to the same limitations and terms and conditions as other redemptions, including the redemption
request procedures set forth in paragraph 4. A stockholder that is a trust may only redeem on the terms available in connection with a Special Redemption if the deceased or disabled was or is the sole beneficiary of the trust or if the only other
beneficiary of the trust was or is the spouse of the deceased or disabled.

6. Qualifying Disability Determinations. In order for a stockholder’s disability (a 

“Qualifying Disability”) to entitle such stockholder to the special redemption terms described in

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paragraph 5, (a) the stockholder must receive a determination of disability based upon a physical or mental condition or impairment arising after the date the stockholder acquired the Shares to be redeemed, and (b) such
determination of disability must be made by the governmental agency responsible for reviewing the disability retirement benefits that the stockholder could be eligible to receive (the “Applicable Government
Agency”). The Applicable Government Agencies are limited to the following: (i) if the stockholder paid Social Security taxes and, therefore, could be eligible to receive Social Security disability benefits, then
the Applicable Governmental Agency is the Social Security Administration or the agency charged with responsibility for administering Social Security disability benefits at that time if other than the Social Security Administration; (ii) if the
stockholder did not pay Social Security taxes and, therefore, could not be eligible to receive Social Security disability benefits, but the stockholder could be eligible to receive disability benefits under the Civil Service Retirement System
(“CSRS”), then the Applicable Governmental Agency is the U.S. Office of Personnel Management or the agency charged with responsibility for administering CSRS benefits at that time
if other than the Office of Personnel Management; or (iii) if the stockholder did not pay Social Security taxes and, therefore, could not be eligible to receive Social Security benefits but suffered a disability that resulted in the
stockholder’s discharge from military service under conditions that were other than dishonorable and, therefore, could be eligible to receive military disability benefits, then the Applicable Governmental Agency is the Department of Veterans
Affairs or the agency charged with the responsibility for administering military disability benefits at that time if other than the Department of Veterans Affairs.

     A disability determination by a governmental agency for purposes other than those listed above, including but not limited to worker’s compensation insurance, administration or enforcement of the
Rehabilitation Act or Americans with Disabilities Act, or waiver of insurance premiums will not be considered a Qualifying Disability. Redemption requests following an award by the Applicable Governmental Agency of disability benefits must be
accompanied by (a) the investor’s initial application for disability benefits, and (b) a Social Security Administration Notice of Award, a U.S. Office of Personnel Management determination of disability under CSRS, a Department of Veterans
Affairs record of disability-related discharge or such other documentation issued by the Applicable Governmental Agency that the Company deems acceptable and that demonstrates an award of the disability benefits.

     Because the following disabilities do not entitle a worker to Social Security disability benefits, they will not be considered Qualifying Disabilities, except in the limited circumstances when the
investor is awarded disability benefits by the other Applicable Governmental Agencies described above:

	
a.      		
disabilities occurring after the legal retirement age;	
	 
	
b.      		
temporary disabilities; and	
	 
	
c.      		
disabilities that do not render a worker incapable of performing substantial	
	 

	
gainful activity.

7. Qualifying for Federal Assistance for Confinement to a Long-Term Care Facility.

With respect to the Special Redemption terms described in paragraph 5 sought in connection 

4

with a stockholder’s (or stockholder’s spouse) qualifying for federal assistance for confinement to a Long-Term Care Facility, a “Long-Term Care Facility” shall mean an institution that: (a) either (i) is approved by Medicare as a provider of skilled nursing care, or (ii) is licensed as a skilled nursing home by the state or territory in which it is located (it must be within the
United States, Puerto Rico, or U.S. Virgin Islands); and (b) meets all of the following requirements: (i) its main function is to provide skilled, intermediate or custodial nursing care; (ii) it provides continuous room and board to three or more
persons; (iii) it is supervised by a registered nurse or licensed practical nurse; (iv) it keeps daily medical records of all medication dispensed; and (v) its primary service is other than to provide housing for residents.

     A stockholder seeking a Special Redemption of his or her Shares in order to qualify for federal assistance for confinement of the stockholder (or the stockholder’s spouse) to a Long-Term Care
Facility must submit: (a) a written statement from a licensed physician certifying either (i) the continuous and continuing confinement of the stockholder (or the stockholder’s spouse) to a Long-Term Care Facility beginning at any time in the
last two years, or (ii) that the licensed physician has determined that the stockholder (or the stockholder’s spouse) should be or is eligible to be indefinitely confined to a Long-Term Care Facility; and (b) evidence satisfactory to the
Company in its sole discretion that the redemption of the Shares and complete or partial exhaustion of the redemption proceeds is necessary for the stockholder (or the stockholder’s spouse) to meet the income or asset levels required by
applicable state or federal assistance programs in order to qualify for state or federal assistance in paying for his or her Long-Term Care Facility.

     The Company may not effect a Special Redemption of Shares if the stockholder seeking redemption was confined to (or eligible to be confined to) a Long-Term Care Facility on the date he or she became a
stockholder. If the Shares are not held by a natural person, or through a revocable grantor trust or an IRA or other retirement or profit sharing plan, then the right of redemption described in this paragraph 7 does not apply.

8. Termination, Suspension or Amendment of the SRP by the Company. The 

Company may amend, suspend or terminate the SRP for any reason upon 30 days’ notice to the Company’s stockholders. The Company is not restricted in the manner in which it may notify stockholders of an amendment,
suspension or termination of the SRP. Notwithstanding the foregoing, until a secondary market develops for the Shares, or until the Board decides to commence a liquidation of the Company, the Company may not amend the SRP in a way that materially
adversely affects the rights of redeeming heirs without approval of the Company’s stockholders.

     The SRP provides stockholders a limited ability to redeem Shares for cash until a secondary market develops for the Shares. If and when such a secondary market develops, the SRP will terminate
automatically.

     9. Address for Notice of Redemption Requests. Stockholders who desire to redeem their Shares must provide written notice to Wells Investment
Securities, at 6200 The Corners Parkway, Suite 250, Norcross, GA 30092, ATTN: Investor Services.

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     10. Liability of the Company. The Company shall not be liable for any act done in good faith or for any good faith omission to act.

     11. Governing Law. The SRP shall be governed by the laws of the State of Maryland.

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