Document:

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                                                                     EXHIBIT 4.5

                                ESCROW AGREEMENT
                                       FOR
                             PENNSYLVANIA INVESTORS

     This ESCROW AGREEMENT is made effective as of this 10th day of November,
2005, by and among WELLS TIMBER REAL ESTATE INVESTMENT TRUST, INC., a Maryland
corporation ("COMPANY"), WELLS INVESTMENT SECURITIES, INC., a Georgia
corporation ("DEALER MANAGER"), and WACHOVIA BANK, NATIONAL ASSOCIATION, a
national banking association ("ESCROW AGENT").

                                   WITNESSETH:

     WHEREAS, Company proposes to offer to the public (the "PUBLIC OFFERING") up
to a maximum of 85,000,000 shares of its common stock, par value $0.01 per share
("SHARES") pursuant to the terms of, and at the prices set forth in, Company's
prospectus ("PROSPECTUS") contained in the registration statement (the
"REGISTRATION Statement") filed with the Securities and Exchange Commission
("COMMISSION") (capitalized terms used but not otherwise defined herein shall
have the respective meanings given in the Prospectus);

     WHEREAS, the Dealer Manager will distribute the Shares on behalf of Company
on a "best efforts" basis;

     WHEREAS, it is anticipated that prospective investors will subscribe for
Shares and will provide Dealer Manager with subscription payments for such
Shares (the "SUBSCRIPTION PAYMENTS"), which subscriptions will be contingent
upon (i) their respective acceptances by Company and (ii) Company's acceptance
of subscriptions aggregating at least $2,000,000 in subscription proceeds (the
"MINIMUM SUBSCRIPTION") by the close of business on the date exactly one year
after the original effective date of the Registration Statement (the "MINIMUM
SUBSCRIPTION TERMINATION DATE");

     WHEREAS, the Commonwealth of Pennsylvania requires Company to have raised a
minimum of $37,500,000 prior to the acceptance of Subscription Payments from
Pennsylvania investors (the "PENNSYLVANIA MINIMUM SUBSCRIPTION");

     WHEREAS, the Pennsylvania Minimum Subscription must be satisfied within 120
days (or subsequent 120-day periods as set forth in Section 4) from the receipt
of any instruments of payment from an investor in the Commonwealth of
Pennsylvania;

     WHEREAS, Escrow Agent has agreed to receive and hold in escrow all
Subscription Payments from Pennsylvania investors and to distribute such
Subscription Payments in each case in accordance with the terms and conditions
herein set forth;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

     1. APPOINTMENT OF ESCROW AGENT. Company and Dealer Manager hereby appoint
Escrow Agent to serve as escrow agent for Pennsylvania investors hereunder, and
Escrow Agent hereby accepts such appointment in accordance with the terms of
this Escrow Agreement. Company and Dealer Manager hereby acknowledge that the
status of Escrow Agent is that of agent only for the limited purposes set forth
herein, and hereby agree that they will not represent or imply that Escrow Agent
has investigated the

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desirability or advisability of investment in the Shares or has approved,
endorsed or passed upon the merits of the investment therein. Company and Dealer
Manager further agree that the name of the Escrow Agent shall not be used in any
manner in connection with the offer or sale of the Shares other than to state
that the Escrow Agent has agreed to serve as escrow agent for the limited
purposes set forth herein.

     2. DEPOSIT INTO ESCROW. Until such time as prospective Pennsylvania
investors have subscribed for the Pennsylvania Minimum Subscription, Dealer
Manager will (i) by 12:00 p.m. Eastern Time on the next business day following
Dealer Manager's receipt of the same, deposit with Escrow Agent, or cause to be
deposited with Escrow Agent, all Subscription Payments received by it from
Pennsylvania investors, accompanied by a list of the names, social security
numbers or tax identification numbers, and addresses (and any other information
required for withholding purposes) of, and amounts paid by, each prospective
investor, and (ii) allow such Subscription Payments to remain in escrow with
Escrow Agent and not withdraw, or attempt to withdraw, such Subscription
Payments from Escrow Agent, except as herein provided. Notwithstanding the
foregoing, if any prospective investor shall exercise any right provided by law
to rescind his or her subscription, Escrow Agent shall, upon notice from Company
or Dealer Manager, return to such prospective investor all Subscription Payments
pertaining to such subscription, together with any earnings thereon during the
period that such Subscription Payments were held by Escrow Agent under this
Escrow Agreement.

     All Subscription Payments delivered to Escrow Agent by Dealer Manager
pursuant hereto shall be deposited immediately by Escrow Agent in a separate
account designated as the "Pennsylvania Escrow Account for the Benefit of
Subscribers for Common Stock of Wells Timber Real Estate Investment Trust, Inc."
(the "PENNSYLVANIA ESCROW ACCOUNT"). The Pennsylvania Escrow Account shall be
created and maintained subject to the terms of this Escrow Agreement and the
customary rules and regulations of Escrow Agent pertaining to such accounts.

     If any of the instruments of payment for the subscription of Shares are
dishonored or returned to Escrow Agent for nonpayment prior to receipt of the
Pennsylvania Minimum Subscription, Escrow Agent shall promptly notify Dealer
Manager in writing of such nonpayment and return such instruments of payment to
Dealer Manager. In any such instance, Escrow Agent is authorized to debit the
Pennsylvania Escrow Account in the amount of such return payment as well as any
earnings on the investment represented by such payment.

     3. INVESTMENT OF THE FUNDS IN THE PENNSYLVANIA ESCROW ACCOUNT. Escrow Agent
shall hold funds delivered to it under the terms of this Escrow Agreement and
shall from time to time invest and reinvest the funds held in the Pennsylvania
Escrow Account, as and when instructed pursuant to joint written instructions by
Company and Dealer Manager, in any one or more of the following:

     (a) obligations of the United States of America;

     (b) obligations guaranteed or collateralized by the United States of
America;

     (c) money market accounts of any national banks or state banks insured by
the Federal Deposit Insurance Corporation, including Escrow Agent; and

     (d) certificates of deposit of any national banks or state banks insured by
the Federal Deposit Insurance Corporation, including Escrow Agent.

     No investment shall be made in any instrument or security that has a
maturity of greater than three (3) months. If no joint written instructions are
received by Escrow Agent as provided above, Escrow

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Agent may invest amounts held in the Pennsylvania Escrow Account in money market
funds of the type described in subparagraph (c) above. Any income or interest
realized from the investments made by Escrow Agent pursuant hereto shall be
reinvested by Escrow Agent until directed otherwise under the terms of this
Escrow Agreement. Dealer Manager and Company may examine any and all
documentation regarding the investment of the Pennsylvania Escrow Account during
normal business hours at the offices of Escrow Agent.

     4. DISBURSEMENTS FROM PENNSYLVANIA ESCROW ACCOUNT.

     (a) Rejected Subscriptions. No later than five (5) business days after
receipt by Escrow Agent of written notice from Company or Dealer Manager that
Company intends to reject a potential investor's subscription, Escrow Agent
shall pay, by certified or bank check and by first-class mail, the amount of the
Subscription Payment paid by such potential investor (together with all earnings
thereon) or Escrow Agent shall return the instruments of payment delivered to
Escrow Agent with respect to any Subscription Payment if such instruments have
not been processed for collection prior to such time directly to such potential
investor.

     (b) Termination of the Public Offering in Pennsylvania. In the event that
the Pennsylvania Minimum Subscription has not been satisfied at the close of
business on the date exactly 120 days from the date of receipt of the first
instruments of payment from an investor in the Commonwealth of Pennsylvania (the
"INITIAL TERMINATION DATE"), which date will be communicated to Escrow Agent in
writing as soon as possible after determination, Company will, within 10 days of
the end of the Initial Termination Date, notify the investors whose funds are
held in the Pennsylvania Escrow Account of their right to receive a refund,
without interest. If the Pennsylvania investor requests a refund within 10 days
of receiving the notice, Company shall so notify Escrow Agent, and Escrow Agent
shall promptly return by check the funds deposited in the Pennsylvania Escrow
Account, or shall return the instruments of payment delivered to Escrow Agent if
such instruments have not been processed for collection prior to such time,
directly to each subscriber at the address given to Company, but in any event
within 15 calendar days from the date Company received the refund request, as
notified by Company to Escrow Agent.

     Amounts held in the Pennsylvania Escrow Account from Pennsylvania investors
not requesting a refund will continue to be held for subsequent 120-day periods
(each a "SUBSEQUENT ESCROW PERIOD") until the Pennsylvania Minimum Subscription
is received; provided that on the last day of each Subsequent Escrow Period
(each a "SUBSEQUENT TERMINATION DATE"), Company will again notify investors of
their right to receive refunds with interest from the date after the Initial
Termination Date subject to the same time period enumerated above. Promptly
following each Subsequent Termination Date, and on the next business day after
each Subsequent Termination Date or as soon as possible thereafter, Escrow Agent
shall return promptly by check the funds deposited in the Pennsylvania Escrow
Account, or shall return the instruments of payment delivered to Escrow Agent if
such instruments have not been processed for collection prior to such time,
directly to each subscriber so requesting a refund at the address given to
Company.

     (c) Termination of Public Offering. In the event that on the Minimum
Subscription Termination Date, Escrow Agent is not in receipt of evidence of
subscriptions accepted on or before such date, and instruments of payment dated
not later than that date (or actual wired funds), for the purchase of Shares at
least equal to the Minimum Subscription, Escrow Agent shall promptly notify
Company and Escrow Agent shall promptly return all funds received in full to
Pennsylvania investors, together with their pro rata share of any interest
earned thereon, pursuant to instructions made by Company, upon which Escrow
Agent may conclusively rely.

     (d) Receipt of Pennsylvania Minimum Subscription Payments. Subject to the
provisions of Section 2 and Section 4(a), (b) and (c) hereof, Escrow Agent shall
hold the Subscription Payments deposited

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with Escrow Agent in the Pennsylvania Escrow Account under the terms of this
Escrow Agreement and not rejected or refunded pursuant to the terms hereof until
such date ("PENNSYLVANIA MINIMUM SUBSCRIPTION SATISFACTION DATE") as Company and
Dealer Manager shall have delivered to the Escrow Agent a joint written
instruction notifying Escrow Agent that the Pennsylvania Minimum Subscription
has been received and accepted (the "PENNSYLVANIA MINIMUM SUBSCRIPTION NOTICE
AND DISBURSEMENT INSTRUCTION"). Within two (2) business days of the Pennsylvania
Minimum Subscription Notice and Disbursement Instruction, Escrow Agent shall
deliver all Subscription Payments in the Pennsylvania Escrow Account and all
earnings thereon to Company in the manner, amounts and to the bank accounts set
forth in the Pennsylvania Minimum Subscription Notice and Disbursement
Instruction.

     In the event that Escrow Agent receives instruments of payment after the
Pennsylvania Minimum Subscription Satisfaction Date, Escrow Agent is hereby
authorized to deposit such instruments of payment to any deposit account as
directed by Company and Dealer Manager. The application of such funds into a
deposit account directed by Company and Dealer Manager shall be a full
acquittance to the Escrow Agent and Escrow Agent shall not be responsible for
the application of such funds.

     5. ESCROW AGENT COMPENSATION. Escrow Agent shall be entitled to receive
compensation for its services as Escrow Agent hereunder as set forth on the
schedule attached hereto and made a part hereof as Exhibit A, which compensation
shall be paid by Company. Notwithstanding anything contained in this Escrow
Agreement to the contrary, in no event shall any fee, reimbursement for costs
and expenses, indemnification for any damages incurred by Escrow Agent, or
monies whatsoever be paid out of or chargeable to the income or assets in the
Pennsylvania Escrow Account held by Escrow Agent.

     6. RESIGNATION AND REMOVAL OF ESCROW AGENT. Escrow Agent may resign at any
time from its obligations under this Escrow Agreement by providing written
notice to Company and Dealer Manager. Such resignation shall be effective on the
date specified in such notice, which shall be not less than thirty (30) days
after such written notice has been given. In addition, Company and Dealer
Manager may jointly remove Escrow Agent as the escrow agent at any time with or
without cause, by a written instrument executed by both of them (which may be
executed in counterparts) given to Escrow Agent, which instrument shall
designate the effective date of such removal. In the event of any such
resignation or removal, a successor escrow agent, which shall be a bank or trust
company organized under the laws of the United States of America, shall be
appointed by the mutual agreement of Company and Dealer Manager. Any such
successor escrow agent shall deliver to Company and Dealer Manager a written
instrument accepting such appointment, and thereupon it shall succeed to all the
rights and duties of Escrow Agent hereunder and shall be entitled to receive the
Pennsylvania Escrow Account. If no successor escrow agent is named by Company
and Dealer Manager, Escrow Agent may apply to a court of competent jurisdiction
for appointment of a successor Escrow Agent.

     7. LIABILITY OF ESCROW AGENT. Escrow Agent shall not be liable to anyone
for any losses, claims, damages, liabilities or expenses that it may incur as a
result of any act or omission of Escrow Agent, unless such losses, claims,
damages, liabilities or expenses are caused by Escrow Agent's bad faith, willful
misconduct or gross negligence. Accordingly, Escrow Agent shall not incur any
such liability with respect to (i) any action taken or omitted in good faith
upon the advice of Escrow Agent's counsel or counsel for any other party hereto,
given with respect to any question relating to the duties and responsibilities
of Escrow Agent under this Escrow Agreement or (ii) any action taken or omitted
in reliance upon any instrument, including execution, or the identity or
authority of any person executing such instrument, its validity and
effectiveness, but also as to the truth and accuracy of any information
contained therein that Escrow Agent shall, in good faith, believe to be genuine,
to have been signed by a proper person or persons and to conform to the
provisions of this Escrow Agreement.

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     8. INDEMNIFICATION OF ESCROW AGENT. Company and Dealer Manager hereby
jointly and severally agree to indemnify and hold Escrow Agent (and its
officers, directors, employees and agents) harmless from and against any and all
losses, claims, damages, liabilities and expenses, including reasonable
attorney's fees and expenses, that may be imposed on Escrow Agent or incurred by
Escrow Agent in connection with Escrow Agent's acceptance of its appointment
hereunder, or the performance of Escrow Agent's duties hereunder, except where
such losses, claims, damages, liabilities and expenses result from Escrow
Agent's bad faith, gross negligence or willful misconduct.

     9. DISPUTES. In the event of any disagreement among any of the parties to
this Escrow Agreement, or among them or any other person resulting in adverse
claims and demands being made in connection with or from any property in the
Pennsylvania Escrow Account, Escrow Agent shall be entitled to refuse to comply
with any such claims or demands as long as such disagreement may continue, and
in so refusing, shall make no delivery or other disposition of any property then
held by it in the Pennsylvania Escrow Account under this Escrow Agreement, and
in so doing Escrow Agent shall be entitled to continue to refrain from acting
until (i) the right of adverse claimants shall have been finally settled by
binding arbitration or finally adjudicated in a court assuming and having
jurisdiction of the property involved herein or affected hereby or (ii) all
differences shall have been adjusted by agreement and Escrow Agent shall have
been notified in writing of such agreement signed by the parties hereto.

     In the event of such disagreement (or a resignation by Escrow Agent under
the terms of this Escrow Agreement), Escrow Agent may tender into the registry
or custody of any court of competent jurisdiction all money or property in its
hands under the terms of this Escrow Agreement, together with instituting any
other legal proceeding it deems appropriate, and thereupon Escrow Agent shall be
discharged from all further duties under this Escrow Agreement. The filing of
any such legal proceeding shall not deprive Escrow Agent of its compensation
earned prior to such filing.

     10. REPRESENTATIONS AND WARRANTIES. Each of Company and Dealer Manager
respectively makes the following representations and warranties to Escrow Agent:

     (a) It is a corporation, duly organized, validly existing, and in good
standing under the laws of the state of its incorporation, and has full power
and authority to execute and deliver this Escrow Agreement and to perform its
obligations hereunder.

     (b) This Escrow Agreement has been duly approved by all necessary corporate
action, including any necessary shareholder approval, has been executed by its
duly authorized officers, and constitutes its valid and binding agreement,
enforceable in accordance with its terms.

     (c) The execution, delivery, and performance of this Escrow Agreement will
not violate, conflict with, or cause a default under its articles of
incorporation or bylaws, any applicable law or regulation, any court order or
administrative ruling or decree to which it is a party or any of its property is
subject, or any agreement, contract, indenture, or other binding arrangement to
which it is a party or any of its property is subject. The execution, delivery
and performance of this Escrow Agreement are consistent with the Prospectus, and
the Prospectus properly describes the allocation of interest and other earnings
to potential Pennsylvania investors pursuant to this Escrow Agreement.

     (d) All of its representations and warranties contained herein are true and
complete as of the date hereof and will be true and complete at the time of any
deposit to or disbursement from the Pennsylvania Escrow Account.

     11. IDENTIFYING INFORMATION. Company and Dealer Manager acknowledge that
the identifying information set forth on Exhibit B is being requested by Escrow
Agent in connection with the

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USA Patriot Act, Pub.L.107-56 (the "ACT"), and Company and Dealer Manager agree
to provide any additional information reasonably requested by Escrow Agent in
connection with the Act or any similar legislation or regulation to which Escrow
Agent is subject, in a timely manner. Company and Dealer Manager each represents
that its respective identifying information set forth on Exhibit B, including
without limitation, its Taxpayer Identification Number assigned by the Internal
Revenue Service or any other taxing authority, is true and complete on the date
hereof and each agrees to notify Escrow Agent of any change with respect thereto
during the term of this Escrow Agreement.

     12. NOTICES. All notices, demands or other communications to be given or
delivered under or by reason of any provision of this Escrow Agreement shall be
in writing and shall be deemed to have been given (i) on the date delivered in
person, (ii) on the date indicated on the return receipt if mailed postage
prepaid, by certified or registered U.S. Mail, with return receipt requested,
(iii) on the date transmitted by facsimile, if sent by 5:00 P.M., Eastern Time
on a business day (or the next business day if after such time or if sent on a
day other than a business day), and confirmation of receipt thereof is obtained,
or (iv) on the next business day after delivery (in time for and specifying next
day delivery) to Federal Express or other nationally recognized overnight
courier service or overnight express U.S. Mail, with service charges or postage
prepaid. The addresses and facsimile numbers of the parties for purposes of this
Escrow Agreement are:

     If to Company:          Wells Timber Real Estate Investment Trust, Inc.
                             6200 The Corners Parkway
                             Norcross, Georgia 30092
                             Facsimile No.: (770) 243-8198
                             Attention: Leo F. Wells, III, President

     With a copy to:         Alston & Bird LLP
                             One Atlantic Center
                             1201 West Peachtree Street
                             Atlanta, Georgia 30309-3424
                             Facsimile No.: (404) 881-7777
                             Attention: Rosemarie A. Thurston

     If to Dealer Manager:   Wells Investment Securities, Inc.
                             6200 The Corners Parkway
                             Norcross, Georgia 30092
                             Facsimile No.: (770) 243-8198
                             Attention: Philip M. Taylor, President

     With a copy to:         Alston & Bird LLP
                             One Atlantic Center
                             1201 West Peachtree Street
                             Atlanta, Georgia 30309-3424
                             Facsimile No.: (404) 881-7777
                             Attention: Rosemarie A. Thurston

     If to Escrow Agent:     Wachovia Bank, N.A.
                             360 Interstate North Parkway SE
                             Suite 500 - GA4605
                             Atlanta, Georgia 30339-2216
                             Facsimile No.: (770) 644-6869
                             Attention: April Bright, Trust Officer

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or to such other address or facsimile number, or to the attention of such other
person, as the receiving party has specified by prior written notice to the
sending party pursuant to this Section 12.

     13. BINDING EFFECT. This Escrow Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

     14. TERM. This Escrow Agreement shall terminate upon distribution of all
Subscription Payments in the Pennsylvania Escrow Account in accordance with
Section 4, or upon the written agreement of Company and Dealer Manager.

     15. AMENDMENTS. This Escrow Agreement shall not be modified, revoked,
released or terminated except upon the mutual consent of Company and Dealer
Manager, given in writing and delivered to the Escrow Agent. Should, at any
time, any attempt be made to modify this Escrow Agreement in a manner that would
increase the duties and responsibilities of Escrow Agent or to modify this
Escrow Agreement in any manner that Escrow Agent deems undesirable, Escrow Agent
may resign by notifying Company and Dealer Manager in writing, by certified
mail, and until (i) acceptance by a successor escrow agent appointed jointly by
Company and Dealer Manager or (ii) thirty (30) days following the date upon
which such notice was delivered by Escrow Agent, whichever occurs sooner, Escrow
Agent's only remaining obligation shall be to perform its duties hereunder in
accordance with the terms of the Escrow Agreement without regards to any such
modification.

     16. ASSIGNMENT. Except as otherwise provided herein, no party may, without
the express written consent of each other party, assign or transfer this Escrow
Agreement in whole or in part.

     17. GOVERNING LAW. This Escrow Agreement is governed by, and shall be
construed and enforced in accordance with, the laws of the State of Georgia
without regard to its conflict of laws rules.

     18. SEVERABILITY. Whenever possible, each provision of this Escrow
Agreement shall be interpreted in such manner as to be effective and valid under
Georgia law, but if any provision shall be prohibited by or be invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Escrow Agreement.

     19. HEADINGS. The headings as to contents of particular sections of this
Escrow Agreement are inserted for convenience and shall not be construed as a
part of this Escrow Agreement or as a limitation on or expansion of the scope of
any terms or provisions of this Escrow Agreement.

     20. COUNTERPARTS. This Escrow Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. It shall not be necessary
for every party hereto to sign each counterpart but only that each party shall
sign at least one such counterpart.

     21. ENTIRE AGREEMENT. This Escrow Agreement contains the entire
understanding between and among the parties hereto and supersedes any previous
understandings, written or oral, that the parties may have reached, with respect
to the subject matter of this Escrow Agreement.

                            [Signatures on Next Page]

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     IN WITNESS WHEREOF, the parties hereto have made and entered into this
Pennsylvania Escrow Agreement on the date first hereinabove set forth.

                                        COMPANY:

                                        WELLS TIMBER REAL ESTATE
                                        INVESTMENT TRUST, INC.

                                        By: /s/ Leo F. Wells, III
                                            ------------------------------------
                                            Leo F. Wells, III
                                            President

                                        DEALER MANAGER:

                                        WELLS INVESTMENT SECURITIES, INC.

                                        By: /s/ Robert McCullough
                                            ------------------------------------
                                            Robert McCullough
                                            Assistant Treasurer

                                        ESCROW AGENT:

                                        WACHOVIA BANK, NATIONAL
                                        ASSOCIATION

                                        By: /s/ April Bright
                                            ------------------------------------
                                        Name: April Bright
                                        Title: Assistant Vice President

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                                    EXHIBIT A

                                ESCROW AGENT FEES

One-Time Escrow Services Fee - Payable in advance - $500

                                       A-1

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                                    EXHIBIT B

                             IDENTIFYING INFORMATION

Taxpayer Identification Numbers:

Company:          20-3536671

Dealer Manager:   58-1572141

                                       B-1<PAGE>
                                                                    EXHIBIT 10.1

                               ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT (this "AGREEMENT"), dated as of November 9, 2005
and effective as of the date the Registration Statement (as defined below) is
declared effective by the Securities and Exchange Commission (the "EFFECTIVE
DATE"), is by and among WELLS TIMBER REAL ESTATE INVESTMENT TRUST, INC., a
Maryland corporation (the "COMPANY"), WELLS TIMBER OPERATING PARTNERSHIP, L.P.,
a Delaware limited partnership (the "PARTNERSHIP"), and WELLS CAPITAL, INC., a
Georgia corporation (the "ADVISOR").

                                   WITNESSETH

     WHEREAS, the Company is filing with the Securities and Exchange Commission
a Registration Statement on Form S-11 (the "REGISTRATION STATEMENT") covering
the initial public offering of its common stock, par value $0.01 per share (the
"SHARES");

     WHEREAS, the Company intends to qualify as a REIT (as defined below), and
intends to invest its funds in investments permitted by the terms of the
Company's Articles of Incorporation and Sections 856 through 860 of the Code (as
defined below);

     WHEREAS, the Company is the general partner of the Partnership and intends
to conduct all of its business and make all of its investments in Properties
through the Partnership;

     WHEREAS, the Company and the Partnership desire to avail themselves of the
experience, sources of information, advice, assistance and certain facilities
available to the Advisor and to have the Advisor undertake the duties and
responsibilities hereinafter set forth, on behalf of, and subject to the
supervision of, the Board of Directors of the Company all as provided herein;
and

     WHEREAS, the Advisor is willing to undertake to render such services,
subject to the supervision of the Board of Directors, on the terms and
conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

     1. DEFINITIONS. As used in this Agreement, the following terms have the
definitions hereinafter indicated:

     ACQUISITION EXPENSES. Any and all expenses incurred by the Company, the
Partnership, the Advisor, or any Affiliate of either in connection with the
selection, acquisition or development of any Property, whether or not acquired,
including, without limitation, legal fees and expenses, travel and
communications expenses, costs of appraisals, nonrefundable option payments on
property not acquired, accounting fees and expenses, and title insurance
premiums.

     ADJUSTED COST. The sum of (a) the actual amount invested on behalf of the
Company in the Properties (including any made capital improvements) plus (b)
with respect to Joint Ventures, the actual amount invested on behalf of the
Company in the Joint Ventures plus the Company's allocable share of capital
improvements made by the Joint Venture from cash flows generated by the Joint
Venture, until such time as Advisor may estimate the value of all interests the
Company holds in Properties or Joint Ventures for ERISA reporting purposes; and
after such time, "ADJUSTED COST" means the lesser of the (1) sum of (x) the
actual amount invested on behalf of the Company in the Properties plus (y) with
respect to

<PAGE>

Joint Ventures, the actual amount invested on behalf of the Company in the Joint
Ventures plus the Company's allocable share of capital improvements made by the
Joint Venture from cash flows generated by the Joint Venture, or (2) the
aggregate value of the Company's interest in the Properties and Joint Ventures
as established in connection with the most recent estimated valuation to assist
ERISA fiduciaries in fulfilling their annual valuation and reporting
responsibilities.

     ADVISOR. Wells Capital, Inc., a Georgia corporation, any successor advisor
to the Company, the Partnership or any Person(s) to which Wells Capital, Inc. or
any successor advisor subcontracts substantially all of its functions.

     AFFILIATE OR AFFILIATED. An Affiliate of another Person includes only the
following: (i) any Person directly or indirectly controlling, controlled by, or
under common control with such other Person; (ii) any Person directly or
indirectly owning, controlling, or holding with the power to vote 10% or more of
the outstanding voting securities of such other Person; (iii) any legal entity
for which such Person acts as an executive officer, director, trustee, or
general partner, (iv) any Person 10% or more of whose outstanding voting
securities are directly or indirectly owned, controlled, or held, with power to
vote, by such other Person; and (v) any executive officer, director, trustee, or
general partner of such other Person. An entity shall not be deemed to control
or be under common control with an Advisor-sponsored program unless (i) the
entity owns 10% or more of the voting equity interests of such program or (ii) a
majority of the board (or equivalent governing body) of such program is
comprised of Affiliates of the entity.

     APPRAISED VALUE. Value according to an appraisal made by an Independent
Appraiser.

     ARTICLES OF INCORPORATION. The Articles of Incorporation of the Company
under Title 2 of the Corporations and Associations Article of the Annotated Code
of Maryland, as amended from time to time.

     ASSET MANAGEMENT FEE. The Asset Management Fee payable to the Advisor as
defined in Section 8(a).

     AVERAGE INVESTED ASSETS. For a specified period, the average of the
aggregate book value of the assets of the Company invested, directly or
indirectly, in Properties and Loans secured by real estate before reserves for
depreciation, depletion, bad debts or other similar non-cash reserves, computed
by taking the average of such values at the end of each month during such
period.

     BOARD OF DIRECTORS OR BOARD. The persons holding such office, as of any
particular time, under the Articles of Incorporation of the Company, whether
they be the Directors named therein or additional or successor Directors.

     BYLAWS. The bylaws of the Company, as the same are in effect from time to
time.

     CAPPED O&O EXPENSES. All Organizational and Offering Expenses other than
selling commissions and the dealer manager fee as described under "Plan of
Distribution" to the Registration Statement.

     CASH FROM FINANCINGS. Net cash proceeds realized by the Company from the
financing of Property or from the refinancing of any Company indebtedness.

     CASH FROM SALES. Net cash proceeds realized by the Company from the sale,
exchange or other disposition of any of its assets after deduction of all
expenses incurred in connection therewith. Cash from Sales shall not include
Cash from Financings.

                                      -2-

<PAGE>

     CASH FROM SALES AND FINANCINGS. The total sum of Cash from Sales and Cash
from Financings.

     CAUSE. With respect to the termination of this Agreement, fraud, criminal
conduct, willful misconduct or willful or grossly negligent breach of fiduciary
duty by the Advisor, or a material breach of this Agreement by the Advisor,
provided that (i) the Advisor does not cure any such material breach within 60
days of receiving notice of such material breach from the Company or the
Partnership, or (ii) such material breach is not of a nature that can be
remedied with such period.

     CODE. Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean
such provision as in effect from time to time, as the same may be amended, and
any successor provision thereto, as interpreted by any applicable regulations as
in effect from time to time.

     COMPANY. Wells Timber Real Estate Investment Trust, Inc., a corporation
organized under the laws of the State of Maryland.

     COMPETITIVE REAL ESTATE COMMISSION. A real estate or brokerage commission
for the purchase or sale of property which is reasonable, customary, and
competitive in light of the size, type, and location of the property.

     CONTRACT SALES PRICE. The total consideration received by the Company for
the sale of a Property.

     DIRECTOR. A member of the Board of Directors of the Company.

     DISTRIBUTIONS. Any distributions of money or other property by the Company
to owners of Shares, including distributions that may constitute a return of
capital for federal income tax purposes.

     GOOD REASON. With respect to the termination of this Agreement, (i) any
failure to obtain a satisfactory agreement from any successor to the Company and
the Partnership to assume and agree to perform the Company's and the
Partnership's obligations under this Agreement; or (ii) any material breach of
this Agreement by the Company, provided that (i) the Company does not cure such
material breach within 60 days of receiving notice of such material breach from
the Advisor, or (ii) such material breach is not of a nature that can be
remedied with such period.

     GROSS PROCEEDS. The aggregate cash purchase price of all Shares sold for
the account of the Company through an Offering, without deduction for
Organization and Offering Expenses.

     INDEPENDENT APPRAISER. A person or entity with no material current or prior
business or personal relationship with the Advisor or the Directors, who is
engaged to a substantial extent in the business of rendering opinions regarding
the value of assets of the type held by the Company, and who is a qualified
appraiser of real estate as determined by the Board. Membership in a nationally
recognized appraisal society such as the American Institute of Real Estate
Appraisers or the Society of Real Estate Appraisers shall be conclusive evidence
of such qualification.

     INDEPENDENT DIRECTOR. A Director who is not and within the last two years
has not been directly or indirectly associated with the Advisor by virtue of (i)
ownership of an interest in the Advisor or its Affiliates, (ii) employment by
the Advisor or its Affiliates, (iii) service as an officer or director of the
Advisor or its Affiliates, (iv) performance of services, other than as a
Director, for the Company, (v) service as a director or trustee of more than
three real estate investment trusts advised by the Advisor, or (vi) maintenance
of a material business or professional relationship with the Advisor or any of
its

                                      -3-

<PAGE>

Affiliates. A business or professional relationship is considered material if
the gross revenue derived by the Director from the Advisor and Affiliates
exceeds 5% of either the Director's annual gross revenue during either of the
last two years or the Director's net worth on a fair market value basis. An
indirect relationship shall include circumstances in which a Director's spouse,
parents, children, siblings, mothers or fathers-in-law, sons or
daughters-in-law, or brothers or sisters-in-law is or has been associated with
the Advisor, any of its Affiliates, or the Company.

     JOINT VENTURE. Any joint venture, limited liability company or other
Affiliate of the Company (other than the Partnership) that owns, in whole or in
part on behalf of the Company, any Properties.

     LISTING. The term "LISTING" shall mean that the Shares have been approved
for trading on a national securities exchange or included for quotation on a
national market system. Upon such Listing, the Shares shall be deemed Listed.

     NASAA GUIDELINES. The NASAA Statement of Policy Regarding Real Estate
Investment Trusts as in effect on the date hereof.

     NET INCOME. For any period, the total revenues applicable to such period,
less the total expenses applicable to such period excluding additions to
reserves for depreciation, depletion, bad debts or other similar non-cash
reserves; provided, however, Net Income for purposes of calculating total
allowable Operating Expenses (as defined herein) shall exclude the gain from the
sale of the Company's assets.

     OFFERING. Any offering of Shares that is registered with the SEC, excluding
Shares offered under any employee benefit plan.

     OFFERING STAGE. The period from the commencement of the Company's initial
public equity offering through the termination of the Company's last public
equity offering prior to Listing. For purposes of this definition, "public
equity offering" does not include offerings on behalf of selling stockholders or
offerings related to a dividend reinvestment plan, employee benefit plan or the
redemption of interests in the Partnership.

     OPERATING EXPENSES. All costs and expenses incurred by the Company, as
determined under generally accepted accounting principles, which in any way are
related to the operation of the Company or to Company business, including fees
paid to the Advisor, but excluding (i) the expenses of raising capital such as
Organization and Offering Expenses, legal, audit, accounting, underwriting,
brokerage, listing, registration, and other fees, printing and other such
expenses and tax incurred in connection with the issuance, distribution,
transfer, registration and Listing of the Shares, (ii) interest payments, (iii)
taxes, (iv) non-cash expenditures such as depreciation, amortization and bad
loan reserves, (v) incentive fees paid in compliance with Section IV.F of the
NASAA Guidelines and (vi) Acquisition Expenses, real estate commissions on
resale of property, and other expenses connected with the acquisition,
disposition, and ownership of real estate interests, mortgage loans or other
property (such as the costs of foreclosure, insurance premiums, legal services,
maintenance, repair and improvement of property).

     ORGANIZATION AND OFFERING EXPENSES. All expenses incurred by and to be paid
from the assets of the Company in connection with and in preparing the Company
for registration of and subsequently offering and distributing its Shares to the
public, which may include but are not limited to, total underwriting and
brokerage discounts and commissions (including fees of the underwriters'
attorneys); expenses for printing, engraving and mailing; salaries of employees
while engaged in sales, education and marketing activities; charges of transfer
agents, registrars, trustees, escrow holders, depositaries and experts; and
expenses of registration and qualification of the sale of the securities,
including taxes and fees, accountants' and attorneys' fees.

                                      -4-

<PAGE>

     PARTNERSHIP. Wells Timber Operating Partnership, L.P., a Delaware limited
partnership formed to own and operate properties on behalf of the Company.

     PARTNERSHIP AGREEMENT. The Agreement of Limited Partnership of the
Partnership, as amended from time to time, between the Company, as General
Partner and the Advisor, as the initial Limited Partner.

     PERSON. An individual, corporation, partnership, estate, trust (including a
trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a
trust permanently set aside for or to be used exclusively for the purposes
described in Section 642(c) of the Code, association, private foundation within
the meaning of Section 509(a) of the Code, joint stock company or other entity,
or any government or any agency or political subdivision thereof, and also
includes a group as that term is used for purposes of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended.

     PROPERTY OR PROPERTIES. Any real property or properties, or any portion
thereof, transferred or conveyed to the Company or the Partnership, either
directly or indirectly.

     REIT. A real estate investment trust under Sections 856 through 860 of the
Code.

     REAL ESTATE DISPOSITION FEE. The fee payable to the Advisor under certain
circumstances in connection with the Sale of one or more Properties pursuant to
Section 8(b).

     SALE OR SALES. (i) Any transaction or series of transactions whereby: (A)
the Company or the Partnership sells, grants, transfers, conveys, or
relinquishes its ownership of any Property or portion thereof, including the
lease of any Property consisting of the building only, and including any event
with respect to any Property which gives rise to a significant amount of
insurance proceeds or condemnation awards; (B) the Company or the Partnership
sells, puts, transfers, conveys, or relinquishes its ownership of all or
substantially all of the interest of the Company or the Partnership in any joint
venture in which it is a co-venturer or partner; or (C) any joint venture in
which the Company or the Partnership as a co-venturer or partner sells, grants,
transfers, conveys, or relinquishes its ownership of any Property or portion
thereof, including any event with respect to any Property which gives rise to
insurance claims or condemnation awards, but (ii) not including any transaction
or series of transactions specified in clause (i)(A), (i)(B), or (i)(C) above in
which the proceeds of such transaction or series of transactions are reinvested
in one or more Properties within 180 days thereafter.

     SPECIAL UNITS. The separate series of limited partnership interests issued
to Wells Capital, Inc. pursuant to the Partnership Agreement as referenced in
Section 8(c).

     STOCKHOLDERS. The registered holders of the Shares.

     TERMINATION DATE. The date of termination of the Agreement.

     TERMINATION EVENT. The termination or nonrenewal of this Agreement (i) in
connection with a merger, sale of assets or other corporate transaction
involving the Company, (ii) by the Advisor for Good Reason or (iii) by the
Company and the Operating Partnership other than for Cause.

     TIMBER MANAGER. Any entity that has been retained to perform and carry out
property management services at one or more of the Properties, excluding
persons, entities or independent contractors retained or hired to perform
facility management or other services or tasks at a particular Property.

                                      -5-

<PAGE>

     2%/25% GUIDELINES. The requirement pursuant to the NASAA Guidelines that,
in any 12-month period, total Operating Expenses not exceed the greater of 2% of
the Company's Average Invested Assets during such 12-month period or 25% of the
Company's Net Income over the same 12-month period.

     2. APPOINTMENT. The Company and the Partnership appoints the Advisor to
serve as its advisor and asset manager as of the Effective Date, on the terms
and conditions set forth in this Agreement, and the Advisor accepts such
appointment as of the Effective Date.

     3. DUTIES AND AUTHORITY OF THE ADVISOR. The Advisor undertakes to use its
reasonable efforts (1) to present to the Company and the Partnership potential
investment opportunities to provide a continuing and suitable investment program
consistent with (i) the investment objectives and policies of the Company as
determined and adopted from time to time by the Board and (ii) the investment
allocation method described at Section 10(b) of this Agreement and (2) to
manage, administer, promote, maintain, and improve the Properties on an overall
portfolio basis in a diligent manner. The services of the Advisor are to be of
scope and quality not less than those generally performed by professional asset
managers of other similar property portfolios. The Advisor shall make available
the full benefit of the judgment, experience and advice of the members of the
Advisor's organization and staff with respect to the duties it will perform
under this Agreement. The Advisor shall also engage a Timber Manager, which may
include Affiliates of the Advisor, to manage, promote, and lease the Properties.
To facilitate the Advisor's performance of these undertakings, but subject to
the restrictions included in Sections 4 and 7 and to the continuing and
exclusive authority of the Board of the Company and the general partner of the
Partnership, the Company and the Partnership hereby delegate to the Advisor the
authority to, and the Advisor hereby agrees to, either directly or by engaging
an Affiliate:

     (A) serve as the Company's and the Partnership's investment and financial
advisor and provide research and economic and statistical data in connection
with the Company's assets and investment policies;

     (B) provide the daily management of the Company and the Partnership and
perform and supervise the various administrative functions reasonably necessary
for the management of the Company and the Partnership;

     (C) maintain and preserve the books and records of the Company, including a
stock ledger reflecting a record of the Stockholders and their ownership of the
Company's Shares and acting as transfer agent for the Company's Shares and
maintaining the accounting and other record-keeping functions at the Property
and Company levels;

     (D) investigate, select, and, on behalf of the Company and the Partnership,
engage and conduct business with such Persons as the Advisor deems necessary to
the proper performance of its obligations hereunder, including but not limited
to consultants, accountants, correspondents, lenders, technical advisors,
attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents,
banks, builders, developers, property owners, mortgagors, and any and all agents
for any of the foregoing, including Affiliates of the Advisor, and Persons
acting in any other capacity deemed by the Advisor necessary or desirable for
the performance of any of the foregoing services, including but not limited to
entering into contracts in the name of the Company and the Partnership with any
of the foregoing;

     (E) consult with the officers and Board and assist the Board in the
formulation and implementation of the Company's financial policies, and, as
necessary, furnish the Board with advice and recommendations with respect to the
making of investments consistent with the investment objectives and

                                      -6-

<PAGE>

policies of the Company and in connection with any borrowings proposed to be
undertaken by the Company and the Partnership;

     (F) oversee the performance by the Timber Manager of its duties, including
collection of payments due from sales of timber and third parties under
contracts related to use of the Property and other assets of the Company and
payment of Property expenses and maintenance;

     (G) conduct periodic on-site property visits to some or all (as the Advisor
deems reasonably necessary) of the Properties to inspect the physical condition
of the Properties and to evaluate the performance of the Timber Manager of its
duties;

     (H) review, analyze and comment upon the operating budgets, capital
budgets, harvest schedules and leasing plans prepared and submitted by the
Timber Manager and aggregate these property budgets into the Company's overall
budget;

     (I) review and analyze on-going financial information pertaining to each
Property and the overall portfolio of Properties;

     (J) if a transaction requires approval by the Board of Directors, deliver
to the Board of Directors all documents requested by them in their evaluation of
the proposed investment in the Property;

     (K) formulate and oversee the implementation of strategies for the
administration, promotion, management, operation, maintenance, improvement,
financing and refinancing, marketing, leasing, and disposition of Properties on
an overall portfolio basis;

     (L) subject to the provisions of Sections 3(l) and 4 hereof, (i) locate,
analyze and select potential investments in Properties, (ii) structure and
negotiate the terms and conditions of transactions pursuant to which investment
in Properties will be made; (iii) make investments in Properties on behalf of
the Company or the Partnership in compliance with the investment objectives and
policies of the Company; (iv) arrange for financing and refinancing and make
other changes in the asset or capital structure of, and dispose of, reinvest the
proceeds from the sale of, or otherwise deal with the investments in, Property;
(v) enter into leases, supply agreements and other income-producing contracts
relating to third party use of the Property and other assets of the Company,
including timber harvesting; (vi) enter into service contracts for Property,
including oversight of Affiliated companies that perform property management
services for the Company and the Partnership; (vii) oversee the non-affiliated
Timber Manager and other non-affiliated Persons who perform services for the
Company; and (viii) to the extent necessary, perform all other operational
functions for the maintenance and administration of such Property;

     (L) obtain the prior approval of the Board for any and all investments in
Properties;

     (M) negotiate on behalf of the Company and the Partnership with banks or
lenders for loans to be made to the Company, and negotiate on behalf of the
Company and the Partnership with investment banking firms and broker-dealers or
negotiate private sales of Shares and other securities or obtain loans for the
Company and the Partnership, but in no event in such a way so that the Advisor
shall be acting as broker-dealer or underwriter; and provided, further, that any
fees and costs payable to third parties incurred by the Advisor in connection
with the foregoing shall be the responsibility of the Company or the
Partnership;

                                      -7-

<PAGE>

     (N) obtain reports (which may be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of investments or
contemplated investments of the Company and the Partnership in Properties;

     (O) from time to time, or at any time reasonably requested by the Board,
provide information or make reports to the Board related to its performance of
services to the Company and the Partnership under this Agreement;

     (P) from time to time, or at any time reasonably requested by the Board,
make reports to the Board of the investment opportunities it has presented to
other Advisor-sponsored programs or that it has pursued directly or through an
Affiliate;

     (Q) provide the Company and the Partnership with all necessary cash
management services;

     (R) deliver to or maintain on behalf of the Company copies of all
appraisals obtained in connection with the investments in Properties;

     (S) notify the Board of all proposed material transactions before they are
completed; and

     (T) at the direction of Company management, prepare the Company's periodic
reports and other filings made under the Securities Exchange Act of 1934, as
amended, and the Company's Post-Effective Amendments to the Registration
Statement as well as all related prospectuses, prospectus supplements and
supplemental sales literature and assist in connection with the filing of such
documents with the appropriate regulatory authorities;

     (U) effect any private placements of Units or other interests in Properties
as may be approved by the Board; and

     (V) do all things necessary to assure its ability to render the services
described in this Agreement.

     4. MODIFICATION OR REVOCATION OF AUTHORITY OF ADVISOR. The Board may, at
any time upon the giving of notice to the Advisor, modify or revoke the
authority or approvals set forth in Section 3, provided however, that such
modification or revocation shall be effective upon receipt by the Advisor and
shall not be applicable to investment transactions to which the Advisor has
committed the Company and the Partnership prior to the date of receipt by the
Advisor of such notification.

     5. BANK ACCOUNTS. The Advisor may establish and maintain one or more bank
accounts in its own name for the account of the Company and the Partnership or
in the name of the Company and the Partnership and may collect and deposit into
any such account or accounts, and disburse from any such account or accounts,
any money on behalf of the Company and the Partnership, under such terms and
conditions as the Board may approve, provided that no funds shall be commingled
with the funds of the Advisor; and the Advisor shall from time to time render
appropriate accountings of such collections and payments to the Board and to the
auditors of the Company.

     6. RECORDS; ACCESS. The Advisor shall maintain appropriate records of all
its activities hereunder and make such records available for inspection by the
Board and by counsel, auditors and authorized agents of the Company, at any time
or from time to time during normal business hours. The Advisor shall at all
reasonable times have access to the books and records of the Company and the
Partnership.

                                      -8-

<PAGE>

     7. LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would (a) adversely affect the
status of the Company as a REIT, (b) subject the Company to regulation under the
Investment Company Act of 1940, as amended, or (c) violate any law, rule,
regulation or statement of policy of any governmental body or agency having
jurisdiction over the Company or the Partnership, its Shares or its other
securities, or otherwise not be permitted by the Articles of Incorporation or
Bylaws of the Company, except if such action shall be ordered by the Board, in
which case the Advisor shall notify promptly the Board of the Advisor's judgment
of the potential impact of such action and shall refrain from taking such action
until it receives further clarification or instructions from the Board. In such
event the Advisor shall have no liability for acting in accordance with the
specific instructions of the Board so given. Notwithstanding the foregoing, the
Advisor, its directors, officers, employees and stockholders, and stockholders,
directors and officers of the Advisor's Affiliates shall not be liable to the
Company, the Partnership or to the Board or stockholders for any act or omission
by the Advisor, its directors, officers or employees, or stockholders, directors
or officers of the Advisor's Affiliates taken or omitted to be taken in the
performance of their duties under this Agreement except as provided in Sections
16 and 17 of this Agreement.

     8. FEES.

     (A) ASSET MANAGEMENT FEE. Subject to the overall limitations contained
below in this Section 8(a), commencing on the Effective Date, the Advisor shall
be paid for the services rendered in connection with the management of the
Company's assets a monthly fee (the "ASSET MANAGEMENT FEE") in an amount equal
to one-twelfth of 1.25% of the Adjusted Cost calculated on the last day of each
preceding month. The Asset Management Fee shall be payable by the Company in
cash or in Shares at the election of the Advisor in whole or in part, from time
to time, by the Advisor (without interest). If the Advisor elects to receive the
Asset Management Fee in the form of Shares, then the Shares shall be valued at a
price per share equal to the average closing price of the Shares over the ten
trading days immediately preceding the date of such election if the Shares are
Listed at such time. If the Shares are not Listed and the Company is still in
its Offering Stage at such time, the Advisor will estimate the per share value
of the Shares at a price per share equal the most recent price paid to acquire a
Share (excluding any Shares sold at a purchase price discounts for certain
categories of purchasers). If the Shares are not Listed and the Offering Stage
has been completed for 12 month at such time, the Shares shall be valued at a
price per share equal the published annual estimated value of the shares as
determined by the Advisor based upon the Appraised Value of the Assets on the
date of election.

     (B) REAL ESTATE DISPOSITION FEE. If the Advisor or an Affiliate provides a
substantial amount of the services (as determined by a majority of the
Independent Directors) in connection with the Sale of one or more Properties,
the Advisor or such Affiliate shall receive at closing a Real Estate Disposition
Fee equal to (i) if the contract price for the Sale is in excess of $20 million,
then an amount not to exceed 1.0% of the contract price of such Property or
Properties, and (ii) if the contract price for the sale is $20 million or less,
then an amount not to exceed 2.0% of the sales price of such Property or
Properties. In each case in which a Real Estate Disposition Fee may be payable,
the precise amount of the fee within the limits set forth in the preceding
sentence shall be determined by the Board, including a majority of the
Independent Directors, based upon the extent of the services provided by the
Advisor or its Affiliate and market norms for the services provided.
Notwithstanding anything to the contrary herein, no Real Estate Disposition Fee
shall be payable to the Advisor for Property Sales if such Sales involve the
Company selling all or substantially all of its Properties in one or more
transactions designed to effectuate a business combination transaction (as
opposed to a Company liquidation, in which case the Real Estate Disposition Fee
would be payable if the Advisor or an Affiliate provides a substantial amount of
services as provided above). Any Real Estate Disposition Fee payable under this
section may be paid in addition to real estate commissions paid to
non-Affiliates, provided that the total real estate commissions

                                      -9-

<PAGE>

(including such Real Estate Disposition Fee) paid to all Persons by the Company
for each Property shall not exceed an amount equal to the lesser of (i) 6.0% of
the Contract Sales Price of the Property or (ii) the Competitive Real Estate
Commission for the Property.

     (C) SPECIAL PARTNERSHIP UNITS. The Advisor has made capital contributions
to the Partnership in exchange for certain partnership units as described as
follows: $2,000 in exchange for 200 common units and $1,000 in exchange for 100
Special Units. Upon the earliest to occur of the termination of this Agreement
for Cause, a Termination Event, or a Listing, all of the Special Units shall be
redeemed by the Partnership in accordance with the terms of the Partnership
Agreement.

     (D) CHANGES TO FEE STRUCTURE. In the event of Listing, the Company and the
Advisor shall negotiate in good faith to establish a fee structure appropriate
for a perpetual-life entity.

     9. EXPENSES.

     (A) REIMBURSABLE EXPENSES. In addition to the compensation paid to the
Advisor pursuant to Section 8 hereof, the Company or the Partnership shall pay
directly or reimburse the Advisor for all of the expenses paid or incurred by
the Advisor (to the extent not reimbursable by another party, such as the dealer
manager) in connection with the services it provides to the Company and the
Partnership pursuant to this Agreement, including, but not limited to:

          (i) the Organization and Offering Expenses; provided, however, that
     within 60 days after the end of the month in which an Offering terminates,
     the Advisor shall reimburse the Company to the extent (i) Capped O&O
     Expenses borne by the Company exceed the maximum amount permitted pursuant
     to the prospectus for the Offering and (ii) Organization and Offering
     Expenses borne by the Company exceed 15% of the Gross Proceeds raised in a
     completed Offering;

          (ii) Acquisition Expenses payable to unaffiliated Persons incurred in
     connection with the selection and acquisition of Properties;

          (iii) the actual cost of goods and services used by the Company and
     obtained from entities not affiliated with the Advisor, other than
     Acquisition Expenses, including brokerage fees paid in connection with the
     purchase and sale of securities;

          (iv) interest and other costs for borrowed money, including discounts,
     points and other similar fees;

          (v) taxes and assessments on income of the Company or Properties;

          (vi) costs associated with insurance required in connection with the
     business of the Company or by the Board;

          (vii) expenses of managing and operating Properties owned by the
     Company, whether payable to an Affiliate of the Company or a non-affiliated
     Person;

          (viii) all expenses in connection with payments to the Board and
     meetings of the Board and Stockholders;

                                      -10-

<PAGE>

          (ix) expenses associated with Listing or with the issuance and
     distribution of securities other than the Shares, such as selling
     commissions and fees, advertising expenses, taxes, legal and accounting
     fees, listing and registration fees;

          (x) expenses connected with payments of Distributions in cash or
     otherwise made or caused to be made by the Company to the Stockholders;

          (xi) expenses of organizing, redomesticating, merging, liquidating or
     dissolving the Company or of amending the Articles of Incorporation or the
     Bylaws;

          (xii) expenses of maintaining communications with Stockholders or
     their financial advisors, including the cost of preparation, printing, and
     mailing annual reports and other Stockholder reports, proxy statements and
     other reports required by governmental entities;

          (xiii) administrative service expenses (including (i) personnel costs;
     provided, however, that no reimbursement shall be made for costs of
     personnel to the extent that such personnel perform services in
     transactions for which the Advisor receives a separate fee, and (ii) the
     Company's allocable share of other overhead of the Advisor such as rent and
     utilities); and

          (xiv) audit, accounting and legal fees.

     (B) OTHER SERVICES. Should the Board request that the Advisor or any
director, officer or employee thereof render services for the Company and the
Partnership other than set forth in Section 3, such services shall be separately
compensated at such rates and in such amounts as are agreed by the Advisor and
the Board, including a majority of the Independent Directors, subject to the
limitations contained in the Articles of Incorporation, and shall not be deemed
to be services pursuant to the terms of this Agreement.

     (C) TIMING OF AND LIMITATIONS ON REIMBURSEMENTS.

          (i) Expenses incurred by the Advisor on behalf of the Company and the
     Partnership and payable pursuant to this Section 9 shall be reimbursed no
     less than monthly to the Advisor. The Advisor shall prepare a statement
     documenting the expenses of the Company and the Partnership during each
     quarter, and shall deliver such statement to the Company and the
     Partnership within 45 days after the end of each quarter.

          (ii) Notwithstanding anything else in this Section 9 to the contrary,
     the expenses enumerated in this Section 9 shall not become reimbursable out
     of proceeds of an Offering to the Advisor unless and until the Company has
     raised the minimum offering amount, if any, as provided in the prospectus
     for the Offering.

          (iii) The Company shall not reimburse the Advisor at the end of any
     fiscal quarter Operating Expenses that, in the four consecutive fiscal
     quarters then ended (the "EXPENSE YEAR") exceed (the "EXCESS AMOUNT") the
     2%/25% Guidelines for such year unless a majority of the Independent
     Directors determines that such excess was justified, based on unusual and
     nonrecurring factors which a majority of our Independent Directors deems
     sufficient. If a majority of the Independent Directors does not approve
     such excess as being so justified, any Excess Amount paid to the Advisor
     during a fiscal quarter shall be repaid to the Company. If a majority of
     the Independent Directors determines such excess was justified, then within
     60 days after the end of any fiscal quarter of the Company for which total
     reimbursed Operating Expenses for the Expense Year exceed the 2%/25%
     Guidelines, the Advisor, at the direction of a majority

                                      -11-

<PAGE>

     of our Independent Directors, shall send to the stockholders a written
     disclosure of such fact, together with an explanation of the factors the
     Independent Directors considered in determining that such excess expenses
     were justified. The Company will ensure that such determination will be
     reflected in the minutes of the meetings of the Board of Directors. All
     figures used in the foregoing computation shall be determined in accordance
     with generally accepted accounting principles applied on a consistent
     basis.

     10. OTHER ACTIVITIES OF THE ADVISOR.

     (A) GENERAL. Nothing herein contained shall prevent the Advisor from
engaging in other activities, including, without limitation, the rendering of
advice to other Persons (including other REITs) and the management of other
programs advised, sponsored or organized by the Advisor or its Affiliates; nor
shall this Agreement limit or restrict the right of any director, officer,
employee, or stockholder of the Advisor or its Affiliates to engage in any other
business or to render services of any kind to any other partnership,
corporation, firm, individual, trust or association. The Advisor may, with
respect to any investment in which the Company or the Partnership is a
participant, also render advice and service to each and every other participant
therein. The Advisor shall report to the Board the existence of any condition or
circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor's obligations to the
Company and the Partners and its obligations to or its interest in any other
partnership, corporation, firm, individual, trust or association.

     (B) POLICY WITH RESPECT TO ALLOCATION OF INVESTMENT OPPORTUNITIES. Before
the Advisor presents an investment opportunity that would in its judgment be
suitable for the Company or the Partnership to another Advisor-sponsored
program, the Advisor shall determine in its sole discretion that the investment
opportunity is more suitable for such other program than for the Company or the
Partnership based on factors such as the following: the investment objectives
and criteria of each program; the cash requirements and anticipated cash flow of
each program; the size of the investment opportunity; the effect of the
acquisition on diversification of each program's investments by type of property
and geographic area and, if applicable, tenant base; the policies of each
program relating to leverage; the estimated income tax effects of the purchase
on each entity; the funds of each entity available for investment and the length
of time such funds have been available for investment. In the event that an
investment opportunity becomes available that is, in the sole discretion of the
Advisor, equally suitable for the Company, the Partnership and another
Advisor-sponsored program, then the Advisor may offer the other program the
investment opportunity if it has had the longest period of time elapse since it
was offered an investment opportunity. The Advisor will use its reasonable
efforts to fairly allocate investment opportunities in accordance with such
allocation method and will promptly disclose any material deviation from such
policy or the establishment of a new policy, which shall be allowed provided (1)
the Board is provided with notice of such policy at least 60 days prior to such
policy becoming effective and (2) such policy provides for the reasonable
allocation of investment opportunities among such programs. The Advisor shall
provide the Independent Directors with any information reasonably requested so
that the Independent Directors can insure that the allocation of investment
opportunities is applied fairly. Nothing herein shall be deemed to prevent the
Advisor or an Affiliate from pursuing an investment opportunity directly rather
than offering it to the Company or another Advisor-sponsored program so long as
the Advisor is fulfilling its obligation to present a continuing and suitable
investment program to the Company which is consistent with the investment
policies and objectives of the Company and the Partnership.

     11. RELATIONSHIP OF ADVISOR AND COMPANY. The Company, the Partnership and
the Advisor are not partners or joint venturers with each other, and nothing in
this Agreement shall be construed to make them such partners or joint venturers
or impose any liability as such on either of them.

                                      -12-

<PAGE>

     12. TERM; TERMINATION OF AGREEMENT. This Agreement shall continue in force
until the first anniversary of the Effective Date, subject to an unlimited
number of successive one-year renewals upon mutual consent of the parties. The
Company, acting through the Board, will evaluate the performance of the Advisor
annually before renewing the Agreement, and each such renewal shall be for a
term of no more than one year.

     13. TERMINATION BY EITHER PARTY, This Agreement may be terminated upon 60
days written notice without cause or penalty, by either party (if by the
Company, upon approval of a majority of the Independent Directors). The
provisions of Sections 15 through 27 shall survive termination of this
Agreement.

     14. ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the
Advisor to an Affiliate with the approval of the Board, including a majority of
the Independent Directors. The Advisor may assign any rights to receive fees or
other payments under this Agreement without obtaining the approval of the Board.
This Agreement shall not be assigned by the Company or the Partnership without
the consent of the Advisor, except in the case of an assignment by the Company
or the Partnership to a corporation or other organization which is a successor
to all of the assets, rights and obligations of the Company or the Partnership,
as the case may be, in which case such successor organization shall be bound
hereunder and by the terms of said assignment in the same manner as the Company
and the Partnership is bound by this Agreement.

     15. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION. Payments to the
Advisor pursuant to this Section 15 shall be subject to the 2%/25% Guidelines to
the extent applicable.

     (A) After the Termination Date, the Advisor shall not be entitled to
compensation for further services hereunder except it shall be entitled to
receive from the Company within 30 days after the effective date of such
termination all unpaid reimbursements of expenses and all earned but unpaid fees
payable to the Advisor prior to termination of this Agreement; and

     (B) The Advisor shall promptly upon termination:

          (i) pay over to the Company all money collected and held for the
     account of the Company pursuant to this Agreement, after deducting any
     accrued compensation and reimbursement for its expenses to which it is then
     entitled;

          (ii) deliver to the Board a full accounting, including a statement
     showing all payments collected by it and a statement of all money held by
     it, covering the period following the date of the last accounting furnished
     to the Board;

          (iii) deliver to the Board all assets, including Properties, and
     documents of the Company then in the custody of the Advisor; and

          (iv) cooperate with the Company to provide an orderly management
     transition.

     16. INDEMNIFICATION BY THE COMPANY. The Company shall indemnify and hold
harmless the Advisor and its Affiliates, including their respective officers,
directors, partners and employees, from all liability, claims, damages or losses
arising in the performance of their duties hereunder, and related expenses,
including reasonable attorneys' fees, to the extent such liability, claims,
damages or losses and related expenses are not fully reimbursed by insurance,
subject to any limitations imposed by the laws of the State of Maryland or the
Articles of Incorporation, Notwithstanding the foregoing, the Advisor shall not
be entitled to indemnification or be held harmless pursuant to this Section 16
for any activity which

                                      -13-

<PAGE>

the Advisor shall be required to indemnify or hold harmless the Company pursuant
to Section 17. Any indemnification of the Advisor may be made only out of the
net assets of the Company and not from Stockholders.

     17. INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold
harmless the Company from contract or other liability, claims, damages, taxes or
losses and related expenses including attorneys' fees, to the extent that such
liability, claims, damages, taxes or losses and related expenses are not fully
reimbursed by insurance and are not incurred by reason of the Advisor's bad
faith, fraud, willful misfeasance, misconduct, or reckless disregard of its
duties, but the Advisor shall not be held responsible for any action of the
Board in following or declining to follow advice or recommendation given by the
Advisor.

     18. NOTICES. Any notice, report or other communication required or
permitted to be given hereunder shall be in writing unless some other method of
giving such notice, report or other communication is required by the Articles of
Incorporation, the Bylaws, or accepted by the party to whom it is given, and
shall be given by being delivered by hand or by overnight mail or other
overnight delivery service to the addresses set forth herein:

To the Board and to the Company: Wells Timber Real Estate Investment Trust, Inc.
                                 6200 The Corners Parkway
                                 Norcross, Georgia 30092-3365
                                 Attention: Chairman of the Board

To the Partnership:              Wells Timber Operating Partnership, L.P
                                 6200 The Corners Parkway
                                 Norcross, Georgia 30092-3365
                                 Attention: Chairman of the Board of
                                            Wells Timber Real Estate
                                 Investment Trust, Inc. General Partner

To the Advisor:                  Wells Capital, Inc.
                                 6200 The Corners Parkway
                                 Norcross, Georgia 30092-3365
                                 Attention: President

     Either party may at any time give notice in writing to the other party of a
change in its address for the purposes of this Section 18.

     19. MODIFICATION. This Agreement shall not be changed, modified,
terminated, or discharged, in whole or in part, except by an instrument in
writing signed by both parties hereto, or their respective successors or
assignees.

     20. SEVERABILITY. The provisions of this Agreement are independent of and
severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or
others of them may be invalid or unenforceable in whole or in part.

     21. CONSTRUCTION. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of Georgia.

     22. ENTIRE AGREEMENT. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and

                                      -14-

<PAGE>

contemporaneous agreements, understandings, inducements and conditions, express
or implied, oral or written, of any nature whatsoever with respect to the
subject matter hereof. The express terms hereof control and supersede any course
of performance and/or usage of the trade inconsistent with any of the terms
hereof. This Agreement may not be modified or amended other than by an agreement
in writing.

     23. INDULGENCES, NOT WAIVER. Neither the failure nor any delay on the part
of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.

     24. GENDER. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context requires.

     25. TITLES NOT TO AFFECT INTERPRETATION. The titles of sections and
subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

     26. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original as against any
party whose signature appears thereon, and all of which shall together
constitute one and the same instrument. This Agreement shall become binding when
the counterparts hereof, taken together, bear the signatures of all of the
parties reflected hereon as the signatories.

     27. NAME. Wells Capital, Inc. has a proprietary interest in the name
"Wells." Accordingly, and in recognition of this right, if at any time the
Company or the Partnership ceases to retain Wells Capital, Inc. or an Affiliate
thereof to perform the services of Advisor, the Company or the Partnership, as
the case may be, will, promptly after receipt of written request from Wells
Capital, Inc., cease to conduct business under or use the name "Wells" or any
derivative thereof and the Company or the Partnership shall use its best efforts
to change the name of the Company to a name that does not contain the name
"Wells" or any other word or words that might, in the sole discretion of the
Advisor, be susceptible of indication of some form of relationship between the
Company and the Advisor or any Affiliate thereof. Consistent with the foregoing,
it is specifically recognized that the Advisor or one or more of its Affiliates
has in the past and may in the future organize, sponsor or otherwise permit to
exist other investment vehicles (including vehicles for investment in real
estate) and financial and service organizations having "Wells" as a part of
their name, all without the need for any consent (and without the right to
object thereto) by the Company or its Board.

                        [Signatures appear on next page.]

                                      -15-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Advisory
Agreement as of the date and year first above written.

                                 WELLS TIMBER REAL ESTATE INVESTMENT TRUST, INC.

                                 By: /s/ Douglas P. Williams
                                     -------------------------------------------
                                     Douglas P. Williams
                                     Executive Vice President

                                 WELLS TIMBER REAL ESTATE
                                 OPERATING PARTNERSHIP, L.P.

                                 By: Wells Timber Real Estate Investment Trust,
                                     Inc., General Partner

                                 By: /s/ Douglas P. Williams
                                     -------------------------------------------
                                     Douglas P. Williams
                                     Executive Vice President

                                 WELLS CAPITAL, INC.

                                 By: /s/ Leo F. Wells, III
                                     -------------------------------------------
                                     Leo F. Wells, III
                                     President

                                      -16-

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