Document:

EX-10.27 PLEDGE AGREEMENT

 

Exhibit 10.27

PLEDGE AGREEMENT

     PLEDGE AGREEMENT, dated as of October 9, 2007 (as amended, supplemented, restated or otherwise
modified from time to time, this “Agreement”), made by MWV SPE, LLC, a Delaware limited
liability company (“Wells Installment Note Issuer”), and Wells Timberland Operating
Partnership, L.P., a Delaware limited partnership (“Wells Partnership”) that may from time
to time become a party hereto (Wells Installment Note Issuer and Wells Partnership are collectively
referred to as the “Grantors” and individually as a “Grantor”), in favor of
Wachovia Bank, National Association, as administrative agent (in such capacity, the
“Administrative Agent”) for each of the Lenders.

W I T N E S S E T H:

     WHEREAS, pursuant to the Subordinated 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”), and Wells Timberland Acquisition, LLC, a Delaware limited liability company
(“Wells Acquisition”; Wells Timberland and Wells Acquisition 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, the Lenders have extended Commitments to make Loans to the Borrowers;

     WHEREAS, as a condition precedent to the occurrence of the Funding Date, each Grantor is
required to execute and deliver this Agreement; and

     WHEREAS, each 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, each Grantor agrees, with the Administrative Agent for its benefit and the
benefit of each other Lender Party, 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 preamble.

     “Collateral” is defined in Section 2.1.

 

 

     “Credit Agreement” is defined in the first recital.

     “Grantor” and “Grantors” are defined in the preamble.

     “Lenders” are defined in the first recital.

     “LLC Agreement” is defined in clause (c)(A) of Section 2.1.

     “Partnership Agreement” shall mean any partnership agreement or other Organizational
Document of any Grantor.

     “Pledged Membership Interests” is defined in clause (c) of Section
2.1.

     “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
any 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 any 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 any Grantor against third parties
with respect to any litigation or dispute concerning any of the Collateral including claims arising
out of the loss or nonconformity of, interference with the use of, defects in, or infringement of
rights in, or damage to, 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 the
Collateral and all rights arising out of Collateral.

     “Secured Obligations” is defined in Section 2.2.

     “Securities Act” is defined in Section 6.2.

     “Securities Issuer” means any Person listed on Schedule I attached hereto (as
such Schedule may be amended or supplemented from time to time) that has issued or may issue a
Pledged Membership Interest.

     “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 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. are used in this Agreement,
including its preamble and recitals, with such meanings.

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ARTICLE II

PLEDGE

     SECTION 2.1 Grant of Security Interest. Each 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 Lenders, and hereby grants to the Administrative Agent, for
its benefit and the ratable benefit of each of the Lenders, a security interest in, all of such
Grantor’s right, title and interest in and to the following, whether now or hereafter existing or
acquired (collectively, the “Collateral”):

          (a) All Equity Interests in each Securities Issuer which is a limited liability company
identified in Schedule I attached hereto (as such Schedule may be amended or supplemented
from time to time) and all additional Equity Interests in the same acquired from time to time by
such Grantor, including in each case, (A) all rights (but not obligations) of each applicable
Grantor as a member pursuant to the applicable limited liability company agreement or other related
Organizational Document (collectively, the “LLC Agreement”) or otherwise, and all rights to
receive distributions, cash, instruments and other property and assets from time to time received,
receivable, or otherwise distributed thereunder, (B) all claims of each Grantor for damages arising
out of or for breach of or default under the applicable LLC Agreement or Partnership Agreement, as
the case may be, (C) the right of each applicable Grantor to terminate the LLC Agreement, as the
case may be, to perform and exercise consensual or voting rights thereunder, and to compel
performance and otherwise exercise all remedies thereunder, (D) all rights of each applicable
Grantor, as a member or otherwise, to all property and assets of the Securities Issuer (whether
real property, inventory, equipment, contract rights, accounts, receivables, general intangibles,
securities, instruments, chattel paper, documents, choses in action, or otherwise) and (E)
certificates or instruments evidencing an ownership, partnership or membership interest in the
applicable Securities Issuer or its assets (such certificates or instruments being referred to
herein, in the case of membership interests, as the “Pledged Membership Interests”),
together with all options, warrants and other rights to acquire additional Pledged Membership
Interests;

          (b) all dividends, distributions, interest and other payments and rights with respect to any
of the items listed in clause (a) above; and

          (c) all Proceeds of any and all of the foregoing Collateral.

     SECTION 2.2 Security for Obligations. This Agreement secures the 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 Note 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 Delivery of Collateral. All Pledged Membership Interests shall be
evidenced by a physical certificate. All such certificates and all other certificates or
instruments representing or evidencing any Collateral shall be delivered to and held by or on
behalf of the Administrative Agent pursuant hereto, shall be in suitable form for transfer by
delivery and shall be accompanied by all necessary instruments of transfer or assignment, duly
executed in blank.

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     SECTION 2.4 Voting Rights; Dividends, Distributions and Payments. (a) In the event
that any dividend or distribution is to be paid on any Pledged Membership Interest at a time when
an Event of Default has not occurred and is continuing, such dividend, distribution or payment may,
subject to the terms of the Credit Agreement, be paid directly to each Grantor. In addition, prior
to the occurrence of any Event of Default and receipt by any relevant Grantor of a notice described
in clause (b)(ii), such Grantor may exercise its voting and other consensual rights with
respect to the Pledged Membership Interests, provided that the same is exercised in a
manner not inconsistent with the terms of this Agreement or any other Loan Document.
Notwithstanding the foregoing, all distributions in the form of additional Equity Interests shall
be paid and delivered to the Administrative Agent and held as additional Collateral hereunder.

          (b) Each Grantor agrees that if any Event of Default shall have occurred and be continuing:

               (i) such Grantor shall, promptly upon receipt thereof and without any request therefor by the
Administrative Agent, deliver (properly endorsed where required hereby or requested by the
Administrative Agent) to the Administrative Agent all dividends, distributions, interest,
principal, other cash payments and Proceeds of the Collateral, all of which shall be held by the
Administrative Agent as additional Collateral for use in accordance with Section 6.4; and

               (ii) after the Administrative Agent has notified such Grantor of the Administrative Agent’s
intention to exercise its voting power under this clause:

                    (A) the Administrative Agent may exercise (to the exclusion of such Grantor) the voting power
and all other incidental rights of ownership with respect to any Pledged Membership Interests or
other Equity Interests constituting Collateral, and such Grantor hereby grants the Administrative
Agent an irrevocable proxy, exercisable under such circumstances, to vote the Pledged Membership
Interests and such other Collateral; and

                    (B) such Grantor shall promptly deliver to the Administrative Agent such additional proxies
and other documents as may be necessary to allow the Administrative Agent to exercise such voting
power.

                    (c) All dividends, distributions, interest, principal, cash payments, and proceeds which may
at any time and from time to time be held by any Grantor but which such Grantor is then obligated
to deliver to the Administrative Agent shall, until delivery to the Administrative Agent, be held
by each Grantor separate and apart from such Grantor’s other property in trust for the
Administrative Agent.

     SECTION 2.5 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 Grantors.

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     SECTION 2.6 Security Interest Absolute. All rights of the Administrative Agent and
the security interests granted to the Administrative Agent hereunder, and all obligations of each
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 any 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 any Grantor or any other Loan Party;

          (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 Obligation of any
Grantor or any other Loan Party, including any increase in the Secured Obligations resulting from
the extension of additional credit to any Grantor or any other Loan Party or otherwise;

          (d) any reduction, limitation, impairment or termination of any Secured Obligation of any
Grantor or any other Loan Party for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to (and each 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 any Grantor, 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, any Grantor, any other Loan Party, any surety or any guarantor,
including as a result of any proceeding of the nature referred to in Section 8.1.8 of the Credit
Agreement.

     SECTION 2.7 Grantors Remain Liable. Anything herein to the contrary notwithstanding:

          (a) each Grantor shall remain liable under the contracts and agreements included in the
Collateral to the extent set forth therein, and shall perform all of such Grantor’s duties and
obligations under such contracts and agreements to the same extent as if this Agreement had not
been executed;

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          (b) each Grantor will comply in all material respects with all Laws relating to the ownership
and operation of the Collateral, including, without limitation, all registration requirements under
applicable Laws, 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
Grantors, and (B) could not reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect;

          (c) the exercise by the Administrative Agent of any of its rights hereunder shall not release
any Grantor from any of such Grantor’s duties or obligations under such Grantor’s Organizational
Documents or any contract or agreement included in the Collateral; and

          (d) neither the Administrative Agent nor any other Lender Party shall have any obligation or
liability under any Organizational Document or 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 any Grantor thereunder or to take
any action to collect or enforce any claim for payment assigned hereunder.

     SECTION 2.8 Waiver of Subrogation. Each 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 such Grantor may now or hereafter acquire against each Borrower or any
other Loan Party that arises from the existence, payment, performance or enforcement of such
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 any Grantor in violation
of the preceding sentence, such amount shall be deemed to have been paid to such 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. Each Grantor acknowledges that such Grantor 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

     Each Grantor represents and warrants unto each Lender Party, as of the date such Grantor
becomes a party to this Agreement, the making of the Loans and each pledge and delivery by such
Grantor to the Administrative Agent of any Collateral, as set forth in this Article.

     SECTION 3.1 Ownership, No Liens, etc. Such Grantor has pledged to the Administrative
Agent, for its benefit and the benefit of each other Lender Party, all the Pledged

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Membership Interests that it is required to pledge pursuant to the Credit Agreement. Such
Grantor is the legal and beneficial owner of, and has good and marketable title to (and has full
corporate or limited liability company right and authority to pledge and assign) the Collateral,
free and clear of all Liens, except for this security interest granted pursuant hereto in favor of
the Administrative Agent for the benefit of the Lender Parties. All of the Pledged Membership
Interests have been duly authorized, validly issued and are fully paid and non-assessable, and have
not been issued or transferred in violation of any securities or other applicable Law. There are no
existing options, warrants, calls, purchase rights, commitments or obligations with respect to the
Pledged Membership Interests.

     SECTION 3.2 Valid Security Interest. The delivery of any Pledged Membership Interest
forming a part of the Collateral to the Administrative Agent is effective to create a valid,
perfected, first priority security interest therein and all Proceeds thereof, securing the Secured
Obligations, in favor of the Administrative Agent for the ratable benefit of the Lender Parties. No
filing or other action will be necessary to perfect or protect such security interest.

     SECTION 3.3 As to Pledged Membership Interests, etc.

          (a) In the case of any Pledged Membership Interests constituting a part of the Collateral, all
of such Pledged Membership Interests are certificated, duly authorized and validly issued, fully
paid and non-assessable, and constitute all of the issued and outstanding partnership interests and
membership interests held by such Grantor in the applicable Securities Issuer.

          (b) Each LLC Agreement to which the Grantor is a party, true and complete copies of which have
been furnished to the Administrative Agent, has been duly authorized, executed, and delivered by
such Grantor, has not been amended or otherwise modified except as permitted by the Credit
Agreement, is in full force and effect, and is binding upon and enforceable against such Grantor in
accordance with its terms. There exists no material default (or other default that could reasonably
be expected to impair the interests or rights of the Administrative Agent) under any LLC Agreement
or Partnership Agreement by either Grantor.

          (c) The LLC Agreement expressly provides that the Pledged Membership Interests, as the case
may be, are “securities” governed by Article 8 of the U.C.C. and are required to be in certificated
form.

          (d) Such Grantor’s Equity Interests in each Securities Issuer is set forth in Schedule
I attached hereto (as such Schedule may be amended or supplemented from time to time).

          (e) Such Grantor had and continues to have the power and legal capacity to execute and carry
out the provisions of all such LLC Agreements to which such Grantor is a party.

          (f) The state of organization of each Securities Issuer of any Pledged Membership Interests
constituting a part of the Collateral is as set forth in Schedule I attached hereto (as
such Schedule may be amended or supplemented from time to time).

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     SECTION 3.4 Authorization, Approval, etc. No authorization, approval or other action
by, and no notice to or filing with, any Governmental Authority or any other Person is required
either for (a) the pledge by such Grantor of any Collateral pursuant to this Agreement or for the
execution, delivery and performance of this Agreement by such Grantor or (b) the exercise by the
Administrative Agent of the voting or other rights provided for in this Agreement or the remedies
in respect of the Collateral pursuant to this Agreement, except, with respect to the Pledged
Membership Interests, as may be required in connection with a disposition of such Pledged
Membership Interests by Laws affecting the offering and sale of securities generally.

     SECTION 3.5 Due Execution, Validity, etc. Such Grantor has full corporate,
partnership or limited liability company power and authority, and holds all requisite licenses,
permits and other approvals of Governmental Authorities, to enter into and perform such Grantor’s
obligations under this Agreement. The execution, delivery and performance by such Grantor of this
Agreement does not contravene or result in a default under such Grantor’s Organizational Documents
or contravene or result in a default under any contractual restriction, Lien or Law binding on
such Grantor. This Agreement has been duly authorized by such Grantor, has been duly executed and
delivered by or on behalf of such Grantor and constitutes the legal, valid and binding obligation
of such 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

     SECTION 4.1 Protect Collateral; Further Assurances, etc. No Grantor will create or
suffer to exist any Lien on the Collateral (except a Lien in favor of the Administrative Agent).
Each Grantor will warrant and defend the right and title herein granted unto the Administrative
Agent in and to the Collateral (and all right, title, and interest represented by the Collateral)
against the claims and demands of all Persons (other than the Administrative Agent). Each Grantor
agrees that at any time, and from time to time, at the expense of such Grantor, such Grantor 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. Except as permitted by the Credit Agreement, no Grantor
will permit any Securities Issuer to own any Equity Interest unless the same is immediately
delivered in pledge to the Administrative Agent hereunder.

     SECTION 4.2 Powers, etc. Each Grantor agrees that all Pledged Membership Interests
delivered by such Grantor pursuant to this Agreement will be accompanied by duly executed undated
blank powers, or other equivalent instruments of transfer reasonably acceptable to the
Administrative Agent. Each Grantor will, from time to time upon the reasonable request of the
Administrative Agent, promptly deliver to the Administrative Agent such powers, instruments, and
similar documents, reasonably satisfactory in form and substance to the Administrative Agent, with
respect to the Collateral and will, from time to time upon the request of the Administrative Agent
during the continuance of any Event of Default, promptly transfer

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any Pledged Membership Interests or other Equity Interests constituting Collateral into the
name of any nominee designated by the Administrative Agent.

     SECTION 4.3 Continuous Pledge. Subject to Section 2.4, each Grantor will, at
all times, keep pledged to the Administrative Agent pursuant hereto all Pledged Membership
Interests constituting Collateral, all dividends and distributions with respect thereto and all
other Collateral and other securities, instruments, proceeds, and rights from time to time received
by or distributable to such Grantor in respect of any Collateral.

     SECTION 4.4 LLC Agreements, Partnership Agreements and Organizational Documents. (a)
Each Grantor shall at such Grantor’s own expense:

               (i) perform and observe in all material respects all the terms and provisions of each LLC
Agreement or other Organizational Document relating to the Collateral, as the case may be, to which
such Grantor is a party and each other contract and agreement included in all the Collateral to be
performed or observed by such Grantor, maintain such LLC Agreement or other Organizational Document
relating to the Collateral, as the case may be, and each such other contract and agreement in full
force and effect, in such Grantor’s reasonable business judgment, enforce such LLC Agreement,
Partnership Agreement or other Organizational Document relating to the Collateral, as the case may
be, and each such other contract and agreement in accordance with its terms, and, upon the
occurrence and during the continuance of any Event of Default, take all such action to such end as
may from time to time be requested by the Administrative Agent; and

               (ii) from time to time (A) furnish to the Administrative Agent such information regarding the
Collateral as the Administrative Agent may reasonably request, and (B) upon the occurrence and
during the continuance of any Event of Default, upon the request of the Administrative Agent, make
to any other party to such LLC Agreement, Partnership Agreement or other Organizational Document
relating to the Collateral, as the case may be, such requests for information and for action as
such Grantor is entitled to make thereunder.

          (b) No Grantor shall consent to any amendment, supplement, waiver or other modification of any
of the terms or provisions contained in, or applicable to, any LLC Agreement, Partnership Agreement
or other Organizational Document except as permitted under Section 7.2.10 of the Credit Agreement.

ARTICLE V

THE ADMINISTRATIVE AGENT

     SECTION 5.1 Administrative Agent Appointed Attorney-in-Fact. Each Grantor hereby
irrevocably constitutes and appoints the Administrative Agent and any officer or agent thereof,
with full power of substitution, as such Grantor’s true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in the name of such
Grantor or in such Grantor’s 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

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Agreement. Without limiting the generality of the foregoing, after the occurrence and during
the continuance of any Event of Default, each Grantor hereby gives the Administrative Agent the
power and right, on behalf of such Grantor, without notice to or assent by such 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;

          (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) receive, collect, sign and indorse any drafts or
other instruments, documents and chattel paper in connection in connection with any of the
Collateral; (iv) 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; (v) defend any suit, action or proceeding brought
against such Grantor with respect to any Collateral; (vi) 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 (vii) 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 such 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 such Grantor might do.

Each 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 any 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 such Grantor.

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     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 have access to, examine, audit,
make extracts from and inspect each Grantor’s records, files and books of account and the
Collateral, and may discuss each Grantor’s affairs with such Grantor’s officers and management.
Each 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 such Grantor. The Administrative Agent may, at expense of the Grantors, use
each 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. 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 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 any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof (including (a) ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative
to any Pledged Membership Interests, whether or not the Administrative Agent has or is deemed to
have knowledge of such matters, and (b) 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 any Grantor
for any loss, damage, depreciation or other diminution in the value of any of the Collateral,
except in respect of any damages attributable solely to any such Person’s gross negligence or
willful misconduct as determined in a final non-appealable judgment of a court of competent
jurisdiction.

ARTICLE VI

REMEDIES

     SECTION 6.1 Remedies. If any Event of Default shall have occurred and be continuing
the Administrative Agent may:

          (a) 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 and clause (b) of Section 2.4), all the rights and remedies of a secured
party on default under the U.C.C. and also may, without demand of performance or other demand,
presentment, obtaining a final judgment, protest, advertisement or notice of any kind (except any
notice required by Law referred to below) to or upon any Grantor or any other Person (all and each
of which demands, defenses, advertisements and notices are hereby waived), sell, assign, give
option or options to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing) in one or more parcels at public or private sale,
at any of the Administrative Agent’s offices or elsewhere, for cash, on

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credit or for future delivery, and upon such other terms as the Administrative Agent may deem
commercially reasonable. Each Grantor agrees that, to the extent notice of sale shall be required
by Law, at least 10 days’ prior notice to such Grantor of the time and place of any public sale or
the time after which any private sale is to be made shall constitute reasonable notification. The
Administrative Agent shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Administrative Agent may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. In case any sale of all or any
part of the Collateral is made on credit or for future delivery, the Collateral so sold may be
retained by the Administrative Agent until the sale price is paid by the purchase or purchasers
thereof, but the Administrative Agent shall not incur any liability in case any such purchaser or
purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such
failure, such Collateral may be sold again upon like notice. At any public (or, to the extent
permitted by Law, private) sale made pursuant to this Section, any Lender Party may bid for or
purchase, free (to the extent permitted by Law) from any right of redemption, stay, valuation or
appraisal on the part of any Grantor (all said rights being also hereby waived and released to the
extent permitted by Law), the Collateral or any part thereof offered for sale and may make payment
on account thereof by using any claim then due and payable to such Lender Party from any Grantor as
a credit against the purchase price, and such Lender Party may upon compliance with the terms of
sale, hold, retain and dispose of such property without further accountability to any Grantor
therefor;

          (b) exercise any and all rights and remedies of each 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
any 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 such Grantor
to demand or otherwise require payment of any amount under, or performance of any provision of, any
Collateral; and

          (c) enforce compliance with, and take any and all actions with respect to, each LLC Agreement
or other Organizational Document, as the case may be, to the fullest extent as though the
Administrative Agent were the absolute owner of the Pledged Membership Interests and other
Collateral, including the right to receive all distributions and other payments that are made
pursuant to such LLC Agreement or other Organizational Document, as the case may be.

     SECTION 6.2 Securities Laws. If the Administrative Agent shall determine to exercise
its right to sell all or any of the Collateral pursuant to Section 6.1, each Grantor agrees
that, upon request of the Administrative Agent, such Grantor will, at its own expense:

          (a) execute and deliver, and cause each issuer of the Collateral contemplated to be sold and
the directors and officers thereof to execute and deliver, all such instruments and documents, and
do or cause to be done all such other acts and things, as may be necessary or, in

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the opinion of the Administrative Agent, advisable to register such Collateral under the
provisions of the Securities Act of 1933, as from time to time amended (the “Securities
Act”), and to cause the registration statement relating thereto to become effective and to
remain effective for such period as prospectuses are required by Law to be furnished, and to make
all amendments and supplements thereto and to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the requirements of the
Securities Act and the rules and regulations of the Securities and Exchange Commission applicable
thereto;

          (b) use its best efforts to qualify the Collateral under the state securities or “Blue Sky”
Laws and to obtain all necessary governmental approvals for the sale of the Collateral, as
requested by the Administrative Agent;

          (c) cause each such issuer to make available to its security holders, as soon as practicable,
an earnings statement that will satisfy the provisions of Section 11(a) of the Securities Act; and

          (d) do or cause to be done all such other acts and things as may be necessary to make such
sale of the Collateral or any part thereof valid and binding and in compliance with applicable Law.

Each Grantor further acknowledges the impossibility of ascertaining the amount of damages that
would be suffered by the Administrative Agent or the Lenders by reason of the failure by such
Grantor to perform any of the covenants contained in this Section and, consequently, to the extent
permitted under applicable Law, agrees that, if such Grantor shall fail to perform any of such
covenants, it shall pay, as liquidated damages and not as a penalty, an amount equal to the value
(as determined by the Administrative Agent) of the Collateral on the date the Administrative Agent
shall demand compliance with this Section.

     SECTION 6.3 Compliance with Restrictions. Each Grantor agrees that in any sale of any
of the Collateral whenever an Event of Default shall have occurred and be continuing, the
Administrative Agent is hereby authorized to comply with any limitation or restriction in
connection with such sale as it may be advised by counsel is necessary in order to avoid any
violation of applicable Law (including compliance with such procedures as may restrict the number
of prospective bidders and purchasers, require that such prospective bidders and purchasers have
certain qualifications, and restrict such prospective bidders and purchasers to persons who will
represent and agree that they are purchasing for their own account for investment and not with a
view to the distribution or resale of such Collateral), or in order to obtain any required approval
of the sale or of the purchaser by any Governmental Authority or official, and each Grantor further
agrees that such compliance shall not result in such sale being considered or deemed not to have
been made in a commercially reasonable manner, nor shall the Administrative Agent be liable nor
accountable to any Grantor for any discount allowed by reason of the fact that such Collateral is
sold in compliance with any such limitation or restriction.

     SECTION 6.4 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

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any part of the Collateral shall be applied (after payment of any amounts payable to the
Administrative Agent pursuant to Section 11.3 of the Credit Agreement and Section 6.5) 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 8.6 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 applicable Grantor or to whomsoever
may be lawfully entitled to receive such surplus.

     SECTION 6.5 Indemnity and Expenses. Each Grantor agrees to jointly and severally
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. Each Grantor will upon 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 may incur 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 Lenders hereunder or (d) the
failure by any 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
X 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 any Grantor herefrom, shall be effective unless the same shall be in writing and signed by the
Administrative Agent and, if there shall be other Lenders, 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 each Grantor and its successors, transferees and
assignees, and shall inure to the benefit of and be enforceable by the Administrative Agent and
each other Lender Party and their respective successors and assigns; provided,
however, that no Grantor may assign such Grantor’s obligations hereunder without the prior
written consent of the Administrative Agent. Without limiting the generality of the

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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 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 each Grantor shall be sent care of Wells Timberland at the address set
forth in the Credit Agreement and all notices to the Administrative Agent shall be sent as provided
in the Credit Agreement.

     SECTION 7.4 Section Captions. Section captions used in this Agreement are for
convenience of reference only, and shall not affect the construction of this Agreement.

     SECTION 7.5 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 7.6 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 but one and the same agreement.

     SECTION 7.7 Waivers. Each 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. Each
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,
each Grantor agrees that such Grantor 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 its rights or
remedies with respect to the Collateral as herein provided.

     SECTION 7.8 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

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SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

     SECTION 7.9 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 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. EACH GRANTOR AND LENDER
PARTY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS FOR THE
PURPOSE OF ANY SUIT LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY
JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. EACH 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. EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH SUCH GRANTOR 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
ANY 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 SUCH GRANTOR OR SUCH GRANTOR’S PROPERTY, SUCH GRANTOR,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
RESPECT OF SUCH GRANTOR’S OBLIGATIONS UNDER THIS AGREEMENT.

     SECTION 7.10 Waiver of Jury Trial, etc. EACH LENDER PARTY AND GRANTOR HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS SUCH GRANTOR 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 GRANTOR. EACH GRANTOR ACKNOWLEDGES AND AGREES THAT SUCH GRANTOR HAS
RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS

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PROVISION IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT ENTERING INTO THIS AGREEMENT.

     SECTION 7.11 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 7.12 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 7.13 Intercreditor Agreement. NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY, THE TERMS OF THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE ADMINISTRATIVE
AGENT OR ANY OTHER LENDER HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT,
DATED AS OF OCTOBER 9, 2007 (AS AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO
TIME, THE “INTERCREDITOR AGREEMENT”), AMONG THE ADMINISTRATIVE AGENT, COBANK, ACB, AS
SENIOR ADMINISTRATIVE AGENT, AND THE LOAN PARTIES. IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS
OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL
GOVERN AND CONTROL.

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     IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered
as of the day and year first above written.

	 	 	 	 	 
	 	 	TIMBERLAND OPERATING PARTNERSHIP, L.P., a Delaware
	 	 	limited partnership
	 
	 	 	 	 
	 

	 	BY:
	 	Wells Timberland REIT, Inc., a Maryland
corporation, General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/  Randall D. Fretz
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	MWV SPE, LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	BY:
	 	Wells Timberland Management Organization, LLC, a

Georgia limited liability company, Manager
	 
	 	 	 	 
	 

	 	By:	 	/s/  Jess E. Jarratt
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Acknowledged and Accepted:
	 
	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 
	 	 	TIMBERLANDS II, LLC, a Delaware limited liability
	 	 	Company
	 
	 	 	 	 
	 

	 	BY:
	 	Wells Timberland Management Organization, LLC, a

Georgia limited liability company, Manager
	 
	 	 	 	 
	 

	 	By:	 	/s/  Jess E. Jarratt 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Pledge
Agreement

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	 	 	WELLS TIMBERLAND ACQUISITION, LLC, a Delaware limited
	 	 	liability company
	 
	 	 	 	 
	 

	 	BY:
	 	Wells Timberland Management Organization, LLC, a

Georgia limited liability company, Manager
	 
	 	 	 	 
	 

	 	By:	 	/s/
Jess E. Jarratt 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Acknowledged and Accepted:
	 
	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as
	 	 	Administrative Agent
	 
	 	 	 	 
	 

	 	By:	 	/s/
Steve W. Whitcomb 
	 

	 	Name:	 	Steve W. Whitcomb 
	 

	 	Title:	 	Director 

Pledge
Agreement

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SCHEDULE I

to

Pledge Agreement

Pledged
Membership Interests

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Membership	 	 	 	 
	 	 	 	 	State of	 	 	 	 	 	 	No. of	 	 	Interests %	 	 	 	 
	 	 	 	 	Organization	 	 	Securities	 	 	Membership	 	 	of Interests	 	 	Certificate	 
	Grantor	 	 	of Grantor	 	 	Issuer	 	 	Interests	 	 	Pledged	 	 	No.EX-10.28 SECURED GUARANTY PLEDGE AGREEMENT

 

Exhibit 10.28

SECURED GUARANTY PLEDGE AGREEMENT

     THIS SECURED GUARANTY PLEDGE AGREEMENT (the “Pledge Agreement”) is entered
into as of October 9, 2007, between WELLS ADVISORY SERVICES I, LLC, a Georgia
limited liability company (“WAS I” and the “Pledgor”) and WACHOVIA BANK, NATIONAL
ASSOCIATION, in its capacity as the Administrative Agent (in such capacity, the
“Administrative Agent”) for the various lending institutions as are, or may from
time to time become, parties thereto (collectively, the “Lenders”) under the
Subordinated Credit Agreement referred to below.

     WHEREAS, pursuant to that certain Subordinated Credit Agreement dated as of the date hereof
(as amended, modified, extended, renewed, restated or replaced from time to time, the “Subordinated
Credit Agreement”), among Timberlands II, LLC, a Delaware limited liability company (“Wells
Timberland”), Wells Timberland Acquisition, LLC, a Delaware limited liability company (“Wells
Acquisition”, together with Wells Timberland, each a “Borrower” and collectively, the “Borrowers”),
the Lenders and the Administrative Agent, the Lenders have agreed to make a loan or loans to the
Borrowers in the aggregate principal amount of up to ONE HUNDRED SIXTY MILLION DOLLARS
($160,000,000) (the “Loan”) upon the terms and subject to the conditions set forth therein; and

     WHEREAS, Wells Real Estate Funds, Inc. (“WREF” or the “Guarantor”) has delivered that certain
Secured Guaranty dated as of the date hereof (as amended, modified, extended, renewed, restated or
replaced from time to time, the “Secured Guaranty”) pursuant to which the Guarantor has agreed to
pay and perform the Guaranteed Obligations (as defined in the Secured Guaranty); and

     WHEREAS, the Pledgor has been issued the Pledged Common Stock (defined below), and as a
material inducement to the Lenders to make the Loan and accept the Secured Guaranty from the
Guarantor, the Pledgor has agreed to execute and deliver this Pledge Agreement to the
Administrative Agent for the benefit of the Lenders.

     NOW, THEREFORE, in consideration of these premises and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1. Definitions. Unless otherwise defined herein, capitalized terms used herein
(including in the recitals hereto) shall have the meanings ascribed to such terms in the
Subordinated Credit Agreement.

     2. Pledge and Grant of Security Interest. To secure the prompt payment and
performance in full when due of the Secured Obligations (as defined in Section 3 hereof),
the Pledgor hereby pledges and grants to the Administrative Agent, for the benefit of the Lenders,
a continuing security interest in any and all right, title and interest of the Pledgor in and to
the following, whether now owned or existing, or owned, acquired, or arising hereafter
(collectively, the “Pledged Collateral”):

          (a) Pledged Collateral. (i) 8,991,299 common shares of Piedmont Realty Office Trust
Inc., formerly known as Wells Real Estate Investment Trust, Inc. (the “REIT”)

 

 

issued to the Pledgor (the “Pledged Common Stock”); provided, however, that in
the case of any split or combination of any such shares or other recapitalization, the Pledged
Collateral shall constitute the securities into which the previously outstanding Pledged Collateral
is converted or otherwise changed.

          (b) Proceeds. All proceeds of the foregoing, however and whenever acquired and in
whatever form.

     Without limiting the generality of the foregoing, it is hereby specifically understood and
agreed that the Pledgor may from time to time hereafter pledge and deliver additional shares of
capital stock or other interests to the Administrative Agent for the benefit of the Lenders as
collateral security for the Secured Obligations. Upon such pledge and delivery to the
Administrative Agent, such additional shares of capital stock or other interests shall be deemed to
be part of the Pledged Collateral of the Pledgor and shall be subject to the terms of this Pledge
Agreement.

     Notwithstanding the foregoing, it is agreed that no lien shall be deemed to have been granted
hereunder and no security interest shall have attached to the Pledged Common Stock unless and until
the occurrence of a Release Event. Upon the occurrence of a Release Event (defined below), a lien
and security interest in 48.5% of the Pledged Common Stock released with respect to such Release
Event shall be deemed to be granted on such shares constituting Pledged Common Stock, and the
proceeds thereof, immediately upon and concurrently with such release. A “Release Event” shall
mean, as to any one or more of the shares of Pledged Common Stock, the release of those shares to
or for the benefit of WAS I or any affiliate thereof or to the Lender from the liens and security
interests created by that certain pledge agreement (the “Term Loan Pledge Agreement”) among the
WREF, WAS I and Wachovia Bank, National Association, in its capacity as the lender (in such
capacity, the “Term Loan Lender”) which, inter alia, secures that certain loan (the “Term Loan”)
under that certain Amended and Restated Loan Agreement of even date (the “Term Loan Agreement”).
In connection with such Release Event, WAS I will irrevocably instruct the Term Loan Lender under
the Term Loan Pledge Agreement and any successors or assigns to transmit 48.5% of the Pledged
Common Stock that are released and any proceeds thereof and stock powers relating thereto, directly
to the Administrative Agent for the benefit of the Lenders unless and until directed otherwise by
the Administrative Agent, and will in any event comply with the Administrative Agent’s instructions
in that regard.

     3. Security for Secured Obligations. The security interest created hereby on the date
hereof and on the date of any Release Event in the Pledged Collateral of the Pledgor constitutes a
continuing collateral security for all of the following, whether now existing or hereafter incurred
(the “Secured Obligations”): (a) all of the Guaranteed Obligations, howsoever evidenced, created,
incurred or acquired, whether primary, secondary, direct, contingent, or joint and several and (b)
all reasonable expenses and charges, legal and otherwise, incurred by the Administrative Agent or
the Lenders collecting or enforcing any of the Guaranteed Obligations or in realizing on or
protecting any security therefor, including without limitation the security granted hereunder.

     4. Delivery of the Pledged Collateral; Perfection of Security Interest. The Pledgor
hereby agrees that:

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          (a) Delivery of Certificates and Instruments. The Pledgor shall deliver, or cause to
be delivered, as security to the Administrative Agent for the benefit of the Lenders (i)
certificates, if any, representing the Pledged Common Stock, promptly as the shares of the Pledged
Common Stock are released from the liens and security interests created under the Term Loan Pledge
Agreement and (ii) promptly upon the receipt thereof by or on behalf of the Pledgor, all other
certificates constituting Pledged Collateral. Prior to such delivery, all such certificates and
instruments constituting Pledged Collateral shall be held in trust by the Pledgor for the benefit
of the Administrative Agent for the benefit of the Lenders pursuant hereto. All such certificates
shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly
executed instruments of transfer or assignment in blank, substantially in the form provided in
Exhibit 4(a) attached hereto.

          (b) Additional Securities. If the Pledgor shall receive by virtue of its being or
having been the owner of any Pledged Collateral, any (i) certificate, including without limitation,
any certificate representing a dividend or distribution in connection with any increase or
reduction of capital, reclassification, merger, consolidation, sale of assets, combination of
shares of capital stock, stock splits, spin-off or split-off, promissory notes or other
instruments; (ii) option or right, whether as an addition to, substitution for, or an exchange for,
any Pledged Collateral or otherwise; (iii) dividends payable in capital stock; or (iv)
distributions of capital stock or other equity interests in connection with a partial or total
liquidation, dissolution or reduction of capital, capital surplus or paid-in surplus, then the
Pledgor shall receive such certificate, instrument, option, right or distribution in trust for the
benefit of the Lenders, shall segregate it from the Pledgor’s other property and shall deliver it
forthwith to the Administrative Agent for the benefit of the Lenders in the exact form received
accompanied by duly executed instruments of transfer or assignment in blank, substantially in the
form provided in Exhibit 4(a) attached hereto, to be held by the Administrative Agent as
Pledged Collateral for the benefit of the Lenders and as further collateral security for the
Secured Obligations, subject to any requirements of the Pledge Agreement.

          (c) Financing Statements; Other Perfection Actions. The Pledgor hereby authorizes the
Administrative Agent to prepare and file such financing statements (including continuation
statements) or amendments thereof or supplements thereto or other instruments as the Administrative
Agent may from time to time deem reasonably necessary or appropriate in order to perfect and
maintain the security interests granted hereunder in accordance with any applicable Uniform
Commercial Code, that describes the Pledged Collateral in such manner as the Administrative Agent
deems necessary or advisable. The Pledgor shall also execute and deliver to the Administrative
Agent and/or file such agreements, assignments or instruments (including affidavits, notices,
reaffirmations, amendments and restatements of existing documents and any documents as may be
necessary, in each case as the Administrative Agent may reasonably request) and do all such other
things as the Administrative Agent may reasonably deem necessary or appropriate (i) to assure to
the Administrative Agent its security interests hereunder are perfected, including such financing
statements (including continuation statements) or amendments thereof or supplements thereto or
other instruments as the Administrative Agent may from time to time reasonably request in order to
perfect and maintain the security interests granted hereunder in accordance with any applicable
Uniform Commercial Code and any other personal property security legislation in the appropriate
jurisdictions, (ii) to consummate the transactions contemplated hereby and (iii) to otherwise
protect and assure the

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Administrative Agent and the Lenders of their rights and interests hereunder. After the
occurrence of a Release Event, the Pledgor agrees to mark its books and records (and to cause the
issuer of the Pledged Common Stock to mark its books and records) to reflect the security interest
of the Administrative Agent in the Pledged Collateral for the benefit of the Lenders.

     5. Representations and Warranties. The Pledgor hereby represents and warrants to the
Administrative Agent that, so long as any of the Secured Obligations (other than contingent
indemnity obligations that survive termination of the Loan Documents pursuant to the stated terms
thereof) remain outstanding, any Loan Document is in effect,:

          (a) Authorization of Pledged Common Stock. The Pledged Common Stock is duly
authorized and validly issued, is fully paid and nonassessable and is not subject to the preemptive
rights of any Person.

          (b) Title. The Pledgor has good and indefeasible title to the Pledged Collateral and
will at all times be the legal and beneficial owner of the Pledged Collateral free and clear of any
Lien, other than the security interest (the “REIT Lien”) given to the REIT under the REIT Pledge
Agreement (as defined in the Term Loan Agreement) and the security interest given the Term Loan
Lender under the Term Loan Pledge Agreement (the “Term Loan Lien”). There exists no “adverse
claim” within the meaning of Section 8-102 of the UCC with respect to the Pledged Common Stock.

          (c) Exercising of Rights. The exercise by the Administrative Agent of its and the
Lenders’ rights and remedies hereunder will not violate any law or governmental regulation or any
material contractual restriction binding on or affecting the Pledgor or any of its property.

          (d) Pledgor’s Authority. No authorization, approval or action by, and no notice or
filing with any Governmental Authority, the issuer of the Pledged Collateral or third party is
required either (i) for the pledge made by the Pledgor or for the granting of the security interest
by the Pledgor pursuant to this Pledge Agreement or (ii) for the exercise by the Administrative
Agent of its and the Lenders’ rights and remedies hereunder (except as may be required by laws
affecting the offering and sale of securities).

          (e) Security Interest/Priority. Subject to the provisions of the last paragraph of
Section 2 hereof, this Pledge Agreement creates a valid security interest in favor of the
Administrative Agent for the benefit of the Lenders in the Pledged Collateral. The filing of
financing statements with the Fulton County Superior Court will effective upon the attachment of
the security interest in the Pledged Common Stock pursuant to the last paragraph of Section 2
hereof, perfect the Lender’s security interest in the Pledged Common Stock, which security interest
will be pari passu with the Term Loan Lender’s security interest in the Pledged Common Stock, with
no security interest or other lien senior thereto.

     6. Covenants. The Pledgor hereby covenants that so long as any of the Secured
Obligations (other than contingent indemnity obligations that survive termination of the Loan
Documents pursuant to the stated terms thereof) remain outstanding, any Loan Document is in effect,
the Pledgor shall:

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          (a) Defense of Title. Warrant and defend title to and ownership of the Pledged
Collateral at its own expense against the claims and demands of all other parties claiming an
interest therein, other than the claims of the REIT under the REIT Pledge Agreement and the Term
Loan Lender under the Term Loan Pledge Agreement; keep the Pledged Collateral free from all Liens,
other than the REIT Lien and the Term Loan Lien; and not sell, exchange, transfer, assign, lease or
otherwise dispose of Pledged Collateral or any interest therein.

          (b) Further Assurances. Promptly execute and deliver at its expense all further
instruments and documents and take all further action that may be reasonably necessary and
desirable or that the Administrative Agent may reasonably request in order to (i) perfect and
protect the security interest created hereby in the Pledged Collateral (including, without
limitation, execution and delivery of one or more control agreements reasonably acceptable to the
Administrative Agent, filing of UCC financing statements and any and all other actions reasonably
necessary to satisfy the Administrative Agent that it has obtained a perfected security interest in
all Pledged Collateral); (ii) enable the Administrative Agent to exercise and enforce its and the
Lenders’ rights and remedies hereunder in respect of the Pledged Collateral; and (iii) otherwise
effect the purposes of this Pledge Agreement, including, without limitation and if requested by the
Administrative Agent, delivering to the Administrative Agent irrevocable proxies in respect of the
Pledged Collateral.

          (c) Amendments. Not make or consent to any amendment or other modification or waiver
with respect to any of the Pledged Collateral or enter into any agreement or allow to exist any
restriction with respect to any of the Pledged Collateral other than pursuant hereto or as may be
permitted hereunder or under the Subordinated Credit Agreement.

          (d) Compliance with Securities Laws. File all reports and other information now or
hereafter required to be filed by the Pledgor with the United States Securities and Exchange
Commission and any other state, federal or foreign agency in connection with the ownership of the
Pledged Collateral.

          (e) Issuance or Acquisition of capital stock. Not, without executing and delivering,
or causing to be executed and delivered, to the Administrative Agent such agreements, documents and
instruments as the Administrative Agent may reasonably require, issue or acquire any capital stock
that consists of an interest in a partnership or a limited liability company which (i) is dealt in
or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides
that it is a Security governed by Article 8 of the UCC, (iii) is an Investment Company Security,
(iv) is held in a Securities Account or (v) constitutes a Security or a Financial Asset.

          (f) SPE Status. Take all appropriate steps to cause the Pledgor to be and to remain
an SPE at all relevant times until the Guaranteed Obligations are paid and performed in full.
“SPE” shall mean a limited liability company whose Certificate of Formation will at all times on
and after the date hereof include all of the following provisions of this definition of SPE:

               (i) it is not engaged and will not engage in any business other than the ownership of the
Pledged Stock;

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               (ii) it does not have and will not have any material assets other than the Pledged Stock and
any proceeds thereof;

               (iii) it has not engaged, sought or consented to and will not engage in, seek or consent to
any dissolution, winding up, liquidation, consolidation, merger, sale of all or substantially all
of its assets, or amendment of its limited liability company certificate of formation or operating
agreement (as applicable) with respect to the matters set forth in this definition;

               (iv) it is and will remain solvent and will pay its debts and liabilities (including as
applicable, any shared personnel and overhead expenses) from its assets as the same shall become
due, and it is maintaining and will maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated business
operations;

               (v) it has not failed and will not fail to correct any known misunderstanding regarding the
separate identity of such entity;

               (vi) it has maintained and will maintain its accounts, books and records separate from those
of any other Person and will file its own tax returns, except to the extent that it may be required
by law to file consolidated tax returns;

               (vii) it has not commingled and will not commingle its funds or assets with those of any other
Person;

               (viii) it has held and will hold its assets in its own name;

               (ix) it has conducted and will conduct its business in its own name;

               (x) it has maintained and will maintain its financial statements, accounting records and other
entity documents separate from those of any other Person and has not permitted and will not permit
its assets to be listed as assets on the financial statement of any other entity except as may be
required by GAAP; provided, however, that it may also file consolidated tax returns
if required by any applicable local, state or federal tax law or other applicable Law, and
further provided, however, that its assets may be included in consolidated
financial statements of any other entity provided that appropriate notation is made on such
consolidated financial statements to indicate its separateness from such other entity;

               (xi) other than as contemplated by this Agreement, the Term Loan Pledge Agreement and the Term
Loan Documents, it has paid and will pay its own liabilities and expenses, including the salaries
of its own employees (if any), out of its own funds and assets;

               (xii) it has observed and will observe all limited liability company formalities;

               (xiii) it has and will have no liabilities other than (a) those contemplated by this
Agreement, the Term Loan Pledge Agreement and the Term Loan Documents, (b) liabilities incurred in
the ordinary course of its business relating to its ownership of the common

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shares of Wells Real Estate Investment Trust, Inc. which are not evidenced by any notes and
are paid when due, and (c) such other liabilities as are permitted to be incurred by it under this
Agreement, the Term Loan Pledge Agreement and the Term Loan Documents, (c) such other liabilities
as are permitted to be incurred by it under this Agreement, the Term Loan Documents and the Term
Loan Pledge Agreement;

               (xiv) it has not assumed or guaranteed and will not assume or guarantee or become obligated
for the debts of any other Person or hold out its credit as being available to satisfy the
obligations of any other Person except as otherwise permitted by this Agreement and the Term Loan
Pledge Agreement and except for its indemnity obligations under the Merger Agreement (as defined in
the Term Loan Agreement);

               (xv) it has allocated and will allocate fairly and reasonably any overhead expenses that are
shared with any Affiliate, including but not limited to paying for shared office space and services
performed by any employee of an Affiliate;

               (xvi) it maintains and uses and will maintain and use separate stationery, invoices and checks
bearing its name. The stationery, invoices and checks used by the Pledgor or used to collect its
funds or pay its expenses shall bear the Pledgor’s own name.

               (xvii) it has not pledged and will not pledge its assets to secure the obligations of any
other person other than pursuant to this Agreement, the Term Loan Documents, the REIT Pledge
Agreement and the Term Loan Pledge Agreement;

               (xviii) it has held itself out and identified itself and will hold itself out and identify
itself as a separate and distinct entity under its own name and shall not permit itself to be
referred to as a department, division or part of any other Person;

               (xix) it has maintained and will maintain its assets and liabilities in a manner such that
segregating, ascertaining and identifying its individual assets and liabilities separately from
those of any other Person would not be difficult;

               (xx) except for capital contributions and capital distributions, it has not entered into or
been a party to and will not enter into or be a party to any transaction with its members or
Affiliates except (a) in the ordinary course of its business and on terms which are intrinsically
fair, commercially reasonable and no less favorable to it than the terms of a comparable
arm’s-length transaction with an unrelated third party would be, and (b) in connection with this
Agreement, the Term Loan Pledge Agreement or the Term Loan Documents; and

               (xxi) it has not and will not have any obligation to, and will not, indemnify its officers,
directors or members unless such an obligation is fully subordinated to the Obligations (as defined
in the Term Loan Agreement) and the Guaranteed Obligations and, to the fullest extent permitted by
law, will not constitute a claim against it in the event that cash flow in excess of the amount
required to pay Obligations (as defined in the Term Loan Agreement and the Guaranteed Obligations
is insufficient to pay such obligation.

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     7. Performance of Guaranteed Obligations; Advances by the Lenders. On failure of the
Pledgor to perform any of the covenants and agreements contained herein, the Administrative Agent
may on behalf of the Lenders, at their sole option and in their sole discretion, perform or cause
to be performed the same and in so doing may expend such sums as the Lenders may reasonably deem
advisable in the performance thereof, including, without limitation, the payment of any insurance
premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien,
expenditures made in defending against any adverse claim and all other expenditures which the
Lenders may make for the protection of the security interest hereof or may be compelled to make by
operation of law. All such sums and amounts so expended shall be repayable by the Pledgor promptly
upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and
shall bear interest from the date said amounts are expended at the Default Rate. No such
performance of any covenant or agreement by the Administrative Agent at the direction of the
Lenders, and no such advance or expenditure therefor, shall relieve the Pledgor of any default
under the terms of this Pledge Agreement or the other Loan Documents. The Lenders may make any
payment hereby authorized in accordance with any bill, statement or estimate procured from the
appropriate public office or holder of the claim to be discharged without inquiry into the accuracy
of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture,
tax lien, title or claim except to the extent such payment is being contested in good faith by the
Pledgor in appropriate proceedings and against which adequate reserves are being maintained in
accordance with GAAP.

     8. Events of Default. The occurrence of an event which under the Subordinated Credit
Agreement would constitute an Event of Default shall be an event of default hereunder (an “Event of
Default”).

     9. Remedies.

          (a) General Remedies. Upon the occurrence of an Event of Default and during the
continuation thereof, the Administrative Agent, on behalf of the Lenders shall have, in respect of
the Pledged Collateral, in addition to the rights and remedies provided herein, in the other Loan
Documents or by law, the rights and remedies of a secured party under the Georgia Uniform
Commercial Code (the “UCC”) or any other applicable law.

          (b) Sale of Pledged Collateral. Upon the occurrence of an Event of Default and during
the continuation thereof, without limiting the generality of this Section and without notice, the
Lenders may, in their sole discretion, direct the Administrative Agent to sell or otherwise dispose
of or realize upon the Pledged Collateral, or any part thereof, in one or more parcels, at public
or private sale, at any exchange or broker’s board or elsewhere, at such price or prices and on
such other terms as the Lenders may deem commercially reasonable, for cash, credit or for future
delivery or otherwise in accordance with applicable law. To the extent permitted by law, the
Lenders may in such event, bid for the purchase of such securities. The Pledgor agrees that, to
the extent notice of sale shall be required by law and has not been waived by the Pledgor, any
requirement of reasonable notice shall be met if notice, specifying the place of any public sale or
the time after which any private sale is to be made, is personally served on or mailed, postage
prepaid, to the Pledgor, in accordance with the notice provisions of Section 11.2 of the
Subordinated Credit Agreement at least ten (10) days before the time of such sale. The
Administrative Agent shall not be obligated to make any sale of Pledged Collateral

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regardless of notice of sale having been given. The Administrative Agent may adjourn any
public or private sale from time to time by announcement at the time and place fixed therefor, and
such sale may, without further notice, be made at the time and place to which it was so adjourned.

          (c) Registration Rights. At any time and from time to time, upon the Lender’s
request, the Pledgor will promptly exercise one or more of its rights contained in the Registration
Rights Agreement, as requested by the Administrative Agent.

          (d) Private Sale. Upon the occurrence of an Event of Default and during the
continuation thereof, the Pledgor recognizes that the Lenders may deem it impracticable to effect a
public sale of all or any part of the Pledged Collateral and that the Lenders may, therefore,
determine to make one or more private sales of any the Pledged Collateral to a restricted group of
purchasers who will be obligated to agree, among other things, to acquire the Pledged Collateral
for their own account, for investment and not with a view to the distribution or resale thereof.
The Pledgor acknowledges that any such private sale may be at prices and on terms less favorable to
the seller than the prices and other terms which might have been obtained at a public sale and,
notwithstanding the foregoing, agrees that such private sale shall be deemed to have been made in a
commercially reasonable manner and that the Lenders shall have no obligation to delay sale of any
the Pledged Collateral for the period of time necessary to permit the issuer of the Pledged
Collateral to register the Pledged Collateral for public sale under the Securities Act of 1933.
The Pledgor further acknowledges and agrees that any offer to sell the Pledged Collateral which has
been (i) publicly advertised on a bona fide basis in a newspaper or other publication of
general circulation in the financial community of New York, New York (to the extent that such offer
may be advertised without prior registration under the Securities Act of 1933), or (ii) made
privately in the manner described above shall be deemed to involve a “public sale” under the UCC,
notwithstanding that such sale may not constitute a “public offering” under the Securities Act of
1933, and the Lenders may, in such event, bid for the purchase of the Pledged Collateral.

          (e) Retention of Pledged Collateral. In addition to the rights and remedies
hereunder, upon the occurrence of an Event of Default and during the continuation thereof, the
Lenders may direct the Administrative Agent, after providing the notices required by Sections 9-620
and 9-621 of the UCC (or any successor sections of the UCC) or otherwise complying with the notice
requirements of applicable law of the relevant jurisdiction, accept or retain all or any portion of
the Pledged Collateral in satisfaction of the Secured Obligations. Unless and until the
Administrative Agent shall have provided such notices, however, the Administrative Agent and the
Lenders shall not be deemed to have retained any Pledged Collateral in satisfaction of any Secured
Obligations for any reason.

          (f) Deficiency. In the event that the proceeds of any sale, collection or realization
are insufficient to pay all amounts to which the Administrative Agent and the Lenders are legally
entitled, the Pledgor shall be liable for the deficiency, together with interest thereon at the
Default Rate, together with the costs of collection and the reasonable fees of any attorneys
employed by the Administrative Agent or the Lenders to collect such deficiency. Any surplus
remaining after the full payment and satisfaction of the Secured Obligations shall be returned to

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the Pledgor or to whomsoever a court of competent jurisdiction shall determine to be entitled
thereto.

          (g) Other Security. To the extent that any of the Secured Obligations are now or
hereafter secured by property other than the Pledged Collateral (including, without limitation,
real and other personal property owned by the Pledgor), or by a guarantee, endorsement or property
of any other Person, then the Lender shall have the right to proceed against such other property,
guarantee or endorsement upon the occurrence and during the continuation of any Event of Default,
and the Lenders shall have the right, in their sole discretion, to determine which rights,
security, Liens, security interests or remedies the Administrative Agent, on behalf of the Lenders,
shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in
any way modifying or affecting any of them or any of the Administrative Agent’s or Lenders’ rights
or the Secured Obligations under this Pledge Agreement or under any other of the Loan Documents.

     10. Rights of the Administrative Agent.

          (a) Power of Attorney. The Pledgor hereby designates and appoints the Administrative
Agent, and each of its designees or agents as attorney-in-fact of the Pledgor, irrevocably and with
power of substitution, with authority to take any or all of the following actions upon the
occurrence and during the continuation of an Event of Default:

               (i) to demand, collect, settle, compromise, adjust and give discharges and releases concerning
the Pledged Collateral of the Pledgor, all as the Administrative Agent may reasonably determine in
respect of the Pledged Collateral;

               (ii) to commence and prosecute any actions at any court for the purposes of collecting any of
the Pledged Collateral and enforcing any other right in respect thereof;

               (iii) to defend, settle, adjust or compromise any action, suit or proceeding brought with
respect to the Pledged Collateral and, in connection therewith, give such discharge or release as
the Administrative Agent may deem reasonably appropriate;

               (iv) to pay or discharge taxes, Liens, security interests, or other encumbrances levied or
placed on or threatened against the Pledged Collateral;

               (v) to direct any parties liable for any payment under any of the Pledged Collateral to make
payment of any and all monies due and to become due thereunder directly to the Administrative Agent
for the benefit of the Lenders or as the Administrative Agent shall direct;

               (vi) to receive payment of and receipt for any and all monies, claims, and other amounts due
and to become due at any time in respect of or arising out of any Pledged Collateral;

               (vii) to sign and endorse any drafts, assignments, proxies, stock powers, verifications,
notices and other documents relating to the Pledged Collateral;

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               (viii) to execute and deliver and/or file all assignments, conveyances, statements, financing
statements, continuation statements, pledge agreements, affidavits, notices and other agreements,
instruments and documents that the Administrative Agent may determine necessary in order to perfect
and maintain the security interests and Liens granted in this Pledge Agreement and in order to
fully consummate all of the transactions contemplated herein;

               (ix) to exchange any of the Pledged Collateral or other property upon any merger,
consolidation, reorganization, recapitalization or other readjustment of the issuer thereof and, in
connection therewith, deposit any of the Pledged Collateral with any committee, depository,
transfer agent, registrar or other designated agency upon such terms as the Administrative Agent
may determine;

               (x) to vote for a shareholder, partner or member resolution, or to sign an instrument in
writing, sanctioning the transfer of any or all of the Pledged Collateral into the name of the
Administrative Agent for the benefit of the Lenders or into the name of any transferee to whom the
Pledged Collateral or any part thereof may be sold pursuant to Section 9 hereof; and

               (xi) to do and perform all such other acts and things as the Administrative Agent or the
Lenders may reasonably deem to be necessary, proper or convenient in connection with the Pledged
Collateral.

     This power of attorney is a power coupled with an interest and shall be irrevocable for so
long as any of the Secured Obligations (other than contingent indemnity obligations that survive
termination of the Loan Documents pursuant to the stated terms thereof) remain outstanding or any
Loan Document is in effect, and until all of the Commitments shall have been terminated. Neither
the Administrative Agent nor the Lenders shall be under any duty to exercise or withhold the
exercise of any of the rights, powers, privileges and options expressly or implicitly granted to
the Administrative Agent or the Lenders in this Pledge Agreement, and shall not be liable for any
failure to do so or any delay in doing so. Neither the Administrative Agent nor the Lenders shall
be liable for any act or omission or for any error of judgment or any mistake of fact or law in its
or their individual capacity or the Administrative Agent’s capacity as attorney-in-fact except acts
or omissions resulting from the gross negligence or willful misconduct of such Person. This power
of attorney is conferred on the Administrative Agent solely to perfect, protect, preserve and
realize upon its security interest in the Pledged Collateral.

          (b) Assignment by the Lenders. The Administrative Agent and the Lenders may from time
to time assign the Secured Obligations or any portion thereof and/or the Pledged Collateral or any
portion thereof to one or more successors thereof, and the assignee shall be entitled to all of the
rights and remedies of the Administrative Agent or the Lenders, as applicable, under this Pledge
Agreement in relation thereto.

          (c) Duty of Care. Other than the exercise of reasonable care to assure the safe
custody of the Pledged Collateral while being held by the Administrative Agent hereunder, the
Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it
being understood and agreed that Pledgor shall be responsible for preservation of all rights in
the Pledged Collateral, and the Administrative Agent and the Lenders shall be relieved of all

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responsibility for the Pledged Collateral upon surrendering it or tendering the surrender of
it to the Pledgor. The Administrative Agent shall be deemed to have exercised reasonable care in
the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral
is accorded treatment substantially equal to that which the Administrative Agent accords its own
property, which shall be no less than the treatment employed by a reasonable and prudent agent in
the industry, it being understood that the Administrative Agent shall not have responsibility for
(i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relating to any Pledged Collateral, whether or not the Administrative
Agent has or is deemed to have knowledge of such matters; or (ii) taking any necessary steps to
preserve rights against any parties with respect to any Pledged Collateral.

          (d) Voting Rights in Respect of the Pledged Collateral.

               (i) So long as no Event of Default shall have occurred and be continuing, to the extent
permitted by law, the Pledgor may exercise any and all voting and other consensual rights
pertaining to the Pledged Collateral or any part thereof for any purpose not inconsistent with the
terms of this Pledge Agreement or the Subordinated Credit Agreement; provided,
however, that the Pledgor shall not exercise or shall refrain from exercising any such
right if the Administrative Agent shall have notified the Pledgor that, in the Administrative
Agent’s judgment, such action would have a material adverse effect on the value of the Pledged
Collateral or any part thereof or such action, in fact, has such effect.

               (ii) Upon the occurrence and during the continuance of a Default or an Event of Default, all
rights of the Pledgor to exercise the voting and other consensual rights which it would otherwise
be entitled to exercise pursuant to paragraph (i) of this subsection (d) shall
cease and all such rights shall thereupon become vested in the Lender which shall then have the
sole right to exercise such voting and other consensual rights.

          (e) [Reserved].

          (f) Dividend and Distribution Rights in Respect of the Pledged Collateral.

               (i) So long as no Event of Default shall have occurred and be continuing, the Pledgor may
receive and retain any and all dividends (other than dividends payable in the form of capital stock
and other dividends constituting Pledged Collateral which are required to be delivered to the
Administrative Agent pursuant to Section 4 above), distributions or interest paid in
respect of the Pledged Collateral to the extent they are allowed under the Subordinated Credit
Agreement.

               (ii) Upon the occurrence and during the continuation of an Event of Default:

                    (A) all rights of the Pledgor to receive the dividends, distributions and interest payments
which it would otherwise be authorized to receive and retain pursuant to paragraph (i) of
this subsection (f) shall cease and all such rights shall thereupon be vested in the
Administrative Agent which shall then have the sole right to receive and hold as Pledged Collateral
such dividends, distributions and interest payments; and

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                    (B) all dividends, distributions and interest payments which are received by the Pledgor
contrary to the provisions of clause (A) of this subsection (ii) shall be received
in trust for the benefit of the Lenders, shall be segregated from other property or funds of the
Pledgor, and shall be forthwith paid over to the Administrative Agent as Pledged Collateral in the
exact form received, to be held by the Administrative Agent as Pledged Collateral and as further
collateral security for the Secured Obligations.

          (g) Release of Pledged Collateral. The Administrative Agent may release any of the
Pledged Collateral from this Pledge Agreement or may substitute any of the Pledged Collateral for
other Pledged Collateral without altering, varying or diminishing in any way the force, effect,
Lien, pledge or security interest of this Pledge Agreement as to any Pledged Collateral not
expressly released or substituted, and this Pledge Agreement shall continue as a Lien on all
Pledged Collateral, subject to the REIT Lien and the Term Loan Lien, not expressly released or
substituted.

     11. Application of Proceeds. After the exercise of remedies by the Administrative
Agent pursuant to Section 8.4 of the Subordinated Credit Agreement (and the Loans (with accrued
interest thereon) and all other amounts under the Loan Documents shall automatically become due and
payable in accordance with the terms of such Section), any proceeds of the Pledged Collateral, when
received by the Administrative Agent in cash or its equivalent, will be applied in reduction of the
Secured Obligations as provided in the Subordinated Credit Agreement, and the Pledgor irrevocably
waives the right to direct the application of such payments and proceeds and acknowledges and
agrees that the Administrative Agent shall have the continuing and exclusive right to apply and
reapply any and all such proceeds in the its sole discretion, notwithstanding any entry to the
contrary upon any of its books and records.

     12. Costs of Counsel. If at any time hereafter, whether upon the occurrence of an
Event of Default or not, the Administrative Agent or the Lenders employ counsel to prepare or
consider amendments, waivers or consents with respect to this Pledge Agreement, or to take action
or make a response in or with respect to any legal or arbitral proceeding relating to this Pledge
Agreement or relating to the Pledged Collateral, or to protect the Pledged Collateral or exercise
any rights or remedies under this Pledge Agreement or with respect to the Pledged Collateral, then
the Pledgor agrees to pay promptly upon demand any and all such reasonable documented costs and
expenses of the Administrative Agent or the Lenders, as the case may be, all of which costs and
expenses shall constitute Secured Obligations hereunder.

     13. Continuing Agreement.

          (a) This Pledge Agreement shall be a continuing agreement in every respect and shall remain in
full force and effect so long as any of the Secured Obligations (other than contingent indemnity
obligations that survive termination of the Loan Documents pursuant to the stated terms thereof)
remain outstanding or any Loan Document is in effect . Upon such payment and termination, this
Pledge Agreement shall be automatically terminated and the Lender shall, upon the request and at
the expense of the Pledgor, forthwith release all of the Liens and security interests granted
hereunder and shall deliver all UCC termination statements and/or other documents reasonably
requested by the Pledgor evidencing such termination.

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Notwithstanding the foregoing, all releases and indemnities provided hereunder shall survive
termination of this Pledge Agreement.

          (b) This Pledge Agreement shall continue to be effective or be automatically reinstated, as
the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is
rescinded or must otherwise be restored or returned by the Administrative Agent or the Lenders as a
preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, all
as though such payment had not been made; provided that in the event payment of all or any part of
the Secured Obligations is rescinded or must be restored or returned, all reasonable costs and
expenses (including without limitation any reasonable legal fees and disbursements) incurred by the
Administrative Agent or any of the Lenders in defending and enforcing such reinstatement shall be
deemed to be included as a part of the Secured Obligations.

     14. Amendments; Waivers; Modifications. This Pledge Agreement and the provisions
hereof may not be amended, waived, modified, changed, discharged or terminated except as set forth
in Section 11.1 of the Subordinated Credit Agreement.

     15. Successors in Interest. This Pledge Agreement shall create a continuing security
interest in the Pledged Collateral and shall be binding upon the Pledgor, its successors and
assigns and shall inure, together with the rights and remedies of the Lender hereunder, to the
benefit of the Administrative Agent, the Lenders and their respective successors and permitted
assigns; provided, however, that the Pledgor may not assign its rights or delegate
its duties hereunder without the prior written consent of the Lenders, as required by the
Subordinated Credit Agreement. To the fullest extent permitted by law, the Pledgor hereby releases
the Administrative Agent and each of the Lenders, their respective officers, employees and agents
and their respective successors and assigns, from any liability for any act or omission relating to
this Pledge Agreement or the Pledged Collateral, except for any liability arising from the gross
negligence or willful misconduct of such Person or its officers, employees and agents, in each case
as determined by a court of competent jurisdiction.

     16. Notices. All notices required or permitted to be given under this Pledge
Agreement shall be in conformance with Section 11.2 of the Subordinated Credit Agreement.

     17. Counterparts. This Pledge Agreement may be executed in any number of
counterparts, each of which where so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument. It shall not be necessary in making proof of this
Pledge Agreement to produce or account for more than one such counterpart. Delivery of executed
counterparts of the Pledge Agreement by telecopy shall be effective as an original and shall
constitute a representation that an original shall be delivered upon the request of the
Administrative Agent.

     18. Term Loan. The Administrative Agent on behalf of the Lenders acknowledges that
pursuant to the Term Loan Agreement, the Term Loan Lender has agreed to make the Term Loan which
Term Loan is evidenced by the Term Loan Agreement and certain other documents (the “Term Loan
Documents”). The Term Loan and the Loan are cross-collateralized by the Pledged Collateral. No
default or event of default under the Term Loan shall in of itself

- 14 -

 

constitute a Default or an Event of Default under the Loan; provided that Term Loan Documents
shall govern whether a default under the Secured Guaranty or the Loan shall constitute a default
under the Term Loan pursuant to the Term Loan Documents.

     19. Headings. The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning, construction or interpretation of any
provision of this Pledge Agreement.

     20. Governing Law; Limitation on Liability; Binding Arbitration; Preservation of Remedies;
Waiver of Punitive Damages and Jury Trial. THIS PLEDGE AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF GEORGIA WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF. The
terms of Sections 11.12, 11.13, 11.14 and 11.15 of the Subordinated Credit Agreement are
incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such
terms.

     21. Severability. If any provision of this Pledge Agreement is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and the remaining
provisions shall remain in full force and effect and shall be construed without giving effect to
the illegal, invalid or unenforceable provisions.

     22. Entirety. This Pledge Agreement and the Loan Documents represent the entire
agreement of the parties hereto and thereto, and supersede all prior agreements and understandings,
oral or written, if any, including any commitment letters or correspondence relating to this Pledge
Agreement and the Loan Documents or the transactions contemplated herein and therein.

     23. Survival. All representations and warranties of the Pledgor hereunder shall
survive the execution and delivery of this Pledge Agreement and the Loan Documents, the delivery of
the Note and the making of the Loan under the Subordinated Credit Agreement.

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     IN WITNESS WHEREOF, the Pledgor has signed this Agreement as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	WELLS ADVISORY SERVICES I, LLC, a Georgia limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wells Management Company, Inc., a Georgia	 	 
	 

	 	 	 	corporation, its Managing Member	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Robert M. McCullough 
	 	 
	 
	 	Name	 	Robert M. McCullough
	 	 
	 

	 	Title:
	 	Vice President	 	 

Secured Guaranty Pledge Agreement

 

 

     IN WITNESS WHEREOF, the Administrative Agent signs this Agreement in its capacity as such for
the Lenders as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steve W. Whitcomb	 	 
	 

	 	Name
	 	Steve
W. Whitcomb

	 	 
	 

	 	Title:
	 	Director

	 	 
	 

	 	 	 	 

	 	 

Secured Guaranty Pledge Agreement

 

 

Exhibit 4(a)

to

Secured Guaranty Pledge Agreement

dated as of October 9, 2007

in favor of Wachovia Bank, National Association,

as the Administrative Agent

Irrevocable Stock Power

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to
the following shares of capital stock of                                         , a                      corporation:

	 	 	 
	No. of Shares
	 	Certificate No.
	 
	 	 

and irrevocably appoints                                                              its agent and attorney-in-fact to transfer all
 or
any part of such capital stock or equity interest and to take all necessary and appropriate action
to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more
persons to act for him.

	 	 	 	 	 	 	 	 	 
	 	 	_________________	 	,	 	 
	 

	 	a
	 	 	 	[corporation]	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:

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