exv10w3






Exhibit 10.3




SECOND AMENDMENT TO CREDIT AGREEMENT




          THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made as of the 20th day of
February, 2009, by and among THE ST. JOE COMPANY, a Florida corporation, ST. JOE TIMBERLAND COMPANY
OF DELAWARE, L.L.C., a Delaware limited liability company, ST. JOE FINANCE COMPANY, a Florida
corporation, ST. JOE RESIDENTIAL ACQUISITIONS, INC., a Florida corporation, the LENDERS listed on
the signature pages hereof and BRANCH BANKING AND TRUST COMPANY, as Administrative Agent.




RECITALS:




          The Borrower, the Initial Guarantors, the Administrative Agent and the Lenders have entered
into a certain Credit Agreement dated as of September 19, 2008, as amended by a First Amendment to
Credit Agreement dated October 30, 2008 (referred to herein as the “Credit Agreement”).
Capitalized terms used in this Amendment which are not otherwise defined in this Amendment shall
have the respective meanings assigned to them in the Credit Agreement.




          The Borrower and Initial Guarantors have requested the Administrative Agent and the Lenders to
amend Section 5.07 of the Credit Agreement. The Lenders, the Administrative Agent, the Initial
Guarantors and the Borrower desire to amend the Credit Agreement upon the terms and conditions
hereinafter set forth.




          NOW, THEREFORE, in consideration of the Recitals and the mutual promises contained herein and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrower, the Initial Guarantors, the Administrative Agent and the Lenders,
intending to be legally bound hereby, agree as follows:




          SECTION 1. Recitals. The Recitals are incorporated herein by reference and shall be
deemed to be a part of this Amendment.




          SECTION 2. Amendments. The Credit Agreement is hereby amended as set forth in this
Section 2.




          SECTION 2.01. Amendment to Section 5.07. Section 5.07 of the Credit Agreement is
amended and restated to read in its entirety as follows:





     SECTION 5.07. Minimum Consolidated Tangible Net Worth. Consolidated
Tangible Net Worth shall at no time be less than $900,000,000, plus 100% of the
cumulative Net Proceeds of Capital Stock/Conversion of Debt received during any
period after June 30, 2008, calculated quarterly at the end of each Fiscal Quarter.



 









 





          SECTION 3. Conditions to Effectiveness. The effectiveness of this Amendment and the
obligations of the Lenders hereunder are subject to the following conditions, unless the Required
Lenders waive such conditions:




          (a) receipt by the Administrative Agent from each of the parties hereto of a duly executed
counterpart of this Amendment signed by such party;




          (b) the Administrative Agent shall have received resolutions from the Borrower and Initial
Guarantors and other evidence as the Administrative Agent may reasonably request, respecting the
authorization, execution and delivery of this Amendment; and




          (c) the fact that the representations and warranties of the Borrower and Initial Guarantors
contained in Section 5 of this Amendment shall be true on and as of the date hereof.




          SECTION 4. No Other Amendment. Except for the amendments set forth above, the text
of the Credit Agreement shall remain unchanged and in full force and effect. This Amendment is not
intended to effect, nor shall it be construed as, a novation. The Credit Agreement and this
Amendment shall be construed together as a single agreement. Nothing herein contained shall waive,
annul, vary or affect any provision, condition, covenant or agreement contained in the Credit
Agreement, except as herein amended, nor affect nor impair any rights, powers or remedies under the
Credit Agreement as hereby amended. The Lenders and the Administrative Agent do hereby reserve all
of their rights and remedies against all parties who may be or may hereafter become secondarily
liable for the repayment of the Notes. The Borrower and Initial Guarantors promise and agree to
perform all of the requirements, conditions, agreements and obligations under the terms of the
Credit Agreement, as heretofore and hereby amended, and the other Loan Documents being hereby
ratified and affirmed. The Borrower and Initial Guarantors hereby expressly agree that the Credit
Agreement, as amended, and the other Loan Documents are in full force and effect.




          SECTION 5. Representations and Warranties. The Borrower and Initial Guarantors
hereby represent and warrant to each of the Lenders as follows:




          (a) No Default or Event of Default under the Credit Agreement or any other Loan Document has
occurred and is continuing unwaived by the Lenders on the date hereof.




          (b) The Borrower and Initial Guarantors have the power and authority to enter into this
Amendment and to do all acts and things as are required or contemplated hereunder to be done,
observed and performed by them.




          (c) This Amendment has been duly authorized, validly executed and delivered by one or more
authorized officers of the Borrower and Initial Guarantors and constitutes the legal, valid and
binding obligations of the Borrower and Initial Guarantors enforceable against them in accordance
with its terms, provided that such enforceability is subject to general principles of equity.




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          (d) The execution and delivery of this Amendment and the performance by the Borrower and
Initial Guarantors hereunder do not and will not require the consent or approval of any regulatory
authority or governmental authority or agency having jurisdiction over the Borrower, or any Initial
Guarantor, nor be in contravention of or in conflict with the articles of incorporation, bylaws or
other organizational documents of the Borrower, or any Initial Guarantor that is a corporation, the
articles of organization or operating agreement of any Initial Guarantor that is a limited
liability company, or the provision of any statute, or any judgment, order or indenture,
instrument, agreement or undertaking, to which any Borrower, or any Initial Guarantor is party or
by which the assets or properties of the Borrower and Initial Guarantors are or may become bound.




          SECTION 6. Counterparts. This Amendment may be executed in multiple counterparts,
each of which shall be deemed to be an original and all of which, taken together, shall constitute
one and the same agreement.




          SECTION 7. Governing Law. This Amendment shall be construed in accordance with and
governed by the laws of the State of North Carolina.




          SECTION 8. Effective Date. This Amendment shall be effective as of February 20,
2009.




[The remainder of this page intentionally left blank.]




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          IN WITNESS WHEREOF, the parties hereto have executed and delivered, or have caused their
respective duly authorized officers or representatives to execute and deliver, this Amendment as of
the day and year first above written.




	 	 	 	 	 
	 	THE ST. JOE COMPANY

 	 
	 	By:  	/s/ Stephen W. Solomon
 	 
	 	Name:  	 	Stephen W. Solomon 	 
	 	Title:  	 	Senior Vice President - Treasurer


[CORPORATE SEAL] 	 
	 
	 	ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C.

 
	 	By:  	/s/ Stephen W. Solomon
 	 
	 	Name:  	 	Stephen W. Solomon 	 
	 	Title:  	 	Senior Vice President - Treasurer


[CORPORATE SEAL] 	 
	 
	 	ST. JOE FINANCE COMPANY

 	 
	 	By:  	/s/ Stephen W. Solomon
 	 
	 	Name:  	 	Stephen W. Solomon 	 
	 	Title:  	 	Vice President - Treasurer


[CORPORATE SEAL] 	 
	 
	 	ST. JOE RESIDENTIAL ACQUISITIONS, INC.

 	 
	 	By:  	/s/ Stephen W. Solomon
 	 
	 	Name:  	 	Stephen W. Solomon 	 
	 	Title:  	 	Senior Vice President - Treasurer


[CORPORATE SEAL] 	 
	 




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	 	BRANCH BANKING AND TRUST COMPANY,

as Administrative Agent and as a Lender

 	 
	 	By:  	/s/ Michael F. Skorich
 	 (SEAL)
	 	Name:  	 	Michael F. Skorich 	 
	 	Title:  	 	Senior Vice President 	 
	 




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