Document:

Exhibit-10.49b

Exhibit 10.49b

SECOND AMENDMENT TO INVESTMENT MANAGEMENT AGREEMENT

This Second Amendment to Investment Management Agreement (“Second Amendment”) is made effective as of the 21st day of April, 2014, by and between FAIRHOLME CAPITAL MANAGEMENT, L.L.C., a Delaware limited liability company and THE ST. JOE COMPANY, a Florida corporation.  

WHEREAS, the parties entered into that certain Investment Management Agreement dated April 8, 2013 and that certain First Amendment to Investment Management Agreement dated February 21, 2014 (collectively, the “Agreement”); and 

WHEREAS, the parties now desire to make certain modifications to the terms of the Agreement.

NOW THEREFORE, in consideration of the mutual promises and covenants contained in this Second Amendment and in the Agreement, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:  

1.    Recitals.  The recitals set forth above are true and correct and are hereby incorporated herein as if again set forth in their entirety.

2.    Definitions.  Any defined terms used herein that are not specifically defined herein shall have the same meaning as set forth in the Agreement.

3.    Schedule B to the Agreement. The parties agree that the original Schedule B to the Agreement shall, as of the date hereof, be deleted in its entirety and replaced by Schedule B attached to this Second Amendment.  

4.    Entire Agreement and Conflicts.  Except as modified herein, there are no changes to the Agreement, and the Agreement as herein modified, remains in full force and effect.  In the event of a conflict between the Agreement and this Second Amendment, the terms of this Second Amendment shall control.

5.    Counterparts and Facsimile.  This Second Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Execution of this Second Amendment by the parties hereto may be evidenced by the transmission of facsimile or electronic (including pdf) copies.

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the day and year first above written.
  
	
							
	FAIRHOLME CAPITAL MANAGEMENT, L.L.C.
	 
	THE ST. JOE COMPANY    

	By:
	/s/ Bruce R. Berkowitz
	 
	By:
	/s/ Park Brady

	 
	Name:
	Bruce R. Berkowitz
	 
	 
	Name:
	Park Brady

	 
	Title:
	Managing Member 
	 
	 
	Title:
	Chief Executive Officer

SCHEDULE B

INVESTMENT GUIDELINES AND RESTRICTIONS

(As of April 21, 2014)
	
			
	 
	% of Investment Account*

	Instrument
	Minimum
	Maximum

	Cash & Cash Equivalents** (Investment Grade)
	50%
	100%

	Investment in any one issuer, on a consolidated basis (excluding U.S. Government)
	0%
	15%***

*    These percentages are based on the amount of St. Joe funds in the Prime Brokerage Account set forth in Schedule A of this Agreement at the time of the investment.
**    Cash Equivalents shall consist of commercial paper, deposit accounts, U.S. Treasury Bills and money- market funds.
*** Investment in any one issuer in excess of 10% must be approved by at least two members of St. Joe Board Investment Committee. 

Investment/Account Restrictions*+

		
	•
	No investments in common equity

		
	•
	All securities to be custodied in cash-only account

		
	•
	No investments in shares of any fund advised by Manager (provided that, except as otherwise required by law, there shall be no restriction on investing in securities  or other instruments held by any such fund)

		
	•
	The average duration for fixed coupon bonds or fixed dividend preferred stock must be less than ten years. This restriction excludes variable interest rate bonds and variable dividend rate preferred.

*  No Guideline or Restriction exception or policy change may be made without written approval of the St. Joe Board Investment Committee.

+  An investment’s compliance with the investment guidelines and restrictions set forth in this Schedule B will be determined on the trade date, based on the transaction price and characteristics of the investment on the trade date compared to the value of the Investment Account as of the most recent valuation date. Investment restrictions set forth in this Schedule B will not be deemed breached as a result of changes in value or characteristics of a security. 

B-1Exhibit 10.4 Berry Multipurpose Agency Agreement for Berry

Exhibit 10.4

Agency Agreement and Power of Attorney

This Agency Agreement and Power of Attorney is entered into by and between Berry Petroleum Company, LLC, a Delaware limited liability company, (referred to herein as “BPC”) and Linn Operating, Inc., a Delaware corporation, (referred to herein as “Linn Operating” and together with BPC referred to as the “Parties”).

Whereas, BPC owns various rights and interests within the continental United States (such rights and interests referred to herein as the “Properties”).

Whereas, Linn Operating is properly licensed or bonded under the rules and regulations of each state where the Properties are located to conduct oil and gas operations in such state, and

Whereas, Linn Operating and BPC are both wholly-owned subsidiaries and Linn Energy, LLC;

Whereas, Linn Operating performs administrative processes for BPC; and

Whereas, BPC wishes to resolve any question of the right of Linn Operating to act as operator for and conduct business transactions on behalf of BPC;

Now, Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, the Parties agree as follows:

BPC hereby appoints and authorizes Linn Operating to serve the exclusive Special Agent and Attorney-In-Fact for BPC, empowered to conduct oil and gas operations on the Properties on behalf of BPC.

BPC further appoints and authorizes Linn Operating, to serve as the exclusive Special Agent and Attorney-In-Fact for BPC to conduct the following business on their behalf:

		
	(i)
	the sale, purchase, exchange or other disposition of natural gas (including all substances contained in or injected into natural gas), hereafter referred to as “gas,” condensate, oil, and any substance produced in association with gas, oil or condensate, hereafter referred to as “associated substances”;

		
	(ii)
	the gathering, transportation, storage, shipment and other physical or transactional movement of gas, condensate, oil and associated substances by pipeline, truck, barge or any other mode (including related functions such as pooling, aggregation, quality banking, gravity banking and balancing);

		
	(iii)
	the separation, treatment, and other handling of gas and other handling of

gas, condensate, oil and associated substances;

		
	(iv)
	the processing of gas and associated substances;

		
	(v)
	the sale, purchase, exchange and disposition of natural gas liquids and/or other products and byproducts resulting form the processing of natural gas and associated substances, hereafter referred to as “products”; and

		
	(vi)
	the storage, shipment and other physical or transactional movement of products by pipeline, truck, barge or any other mode.

BPC further appoints and authorizes Linn Operating to serve as the exclusive Special Agent and Attorney-In-Fact for BPC to:

(i)provide any notice, flow nomination, confirmation, tender or related documents to any pipeline, plant operator or other service provider on behalf of BPC that Linn Operating may determine is necessary or desirable to conduct the foregoing business, it being understood and agreed that the term of such contract or other binding commitment may extend beyond the term of this Agreement;

(ii)to negotiate, enter into and execute any contract, contract amendment and other binding commitment on behalf of BPC that Linn Operating may determine is necessary or desirable to conduct the foregoing business,

(iii)to compromise and settle any claims and disputes arising out of or in connection with the foregoing business on behalf of BPC in such manner as Linn Operating may determine is necessary or desirable,

(iv)to receive payments on behalf of BPC,

(v)to make payments on behalf of BPC, and

(vi)to act on behalf of and as proxy for BPC in any authorization, approval, vote or other action required to conduct the foregoing business.

Linn Operating hereby accepts such designation and authority, subject to the following requirements:

Linn Operating shall at all times maintain and keep in full force and effect such limits of coverage and such bonding and licensing as required by rule, regulations and/or statute of the appropriate jurisdictional authority so as to be and remain qualified as an oil and gas operator in each state where the Properties are located.

This Agreement shall become effective upon execution and shall apply to all Properties 

and related production owned or controlled by BPC on or after December 1, 2007 at 12:01 A.M. local time in the location of such Property.  BPC hereby ratifies and adopts all actions taken by Linn Operating on their behalf as contemplated by this Agency Agreement after such date, including, without limitation, Linn Operating conducting any and all oil and gas operations, Linn Operating conducting business transactions, and otherwise in Linn Operating representing the interest of BPC.

This Agreement may be terminated by either Party giving notice thereof to the other Party, whereupon the power of attorney granted hereby to Linn Operating shall automatically be revoked.

AGREED TO this 5th day of March, 2014.

	
					
	Berry Petroleum Company, LLC
	 
	Linn Operating, Inc.

	 
	 
	 

	 
	 
	 

	 
	 
	 

	By:
	/s/ David B. Rottino
	 
	By:
	/s/ David B. Rottino

	 
	David B. Rottino
Senior Vice President
Finance and Business Development
	 
	 
	David B. Rottino
Senior Vice President
Finance and Business Development

State of Texas    )
)
County of Harris     )

This instrument was acknowledged before me on the 5th day of March, 2014, by David B. Rottino, Senior Vice President – Finance and Business Development of Linn Operating, Inc., on behalf of said corporation.

	
		
	 
	/s/ Aimee D. Stadtfeld

	 
	Notary Public, State of Texas

My commission expires:

November 8, 2017

State of Texas    )
)
County of Harris     )

This instrument was acknowledged before me on the 5th day of March, 2014, by David B. Rottino, Senior Vice President – Finance and Business Development of Berry Petroleum Company, LLC, on behalf of said limited liability company.

	
		
	 
	/s/ Aimee D. Stadtfeld

	 
	Notary Public, State of Texas

My commission expires:

November 8, 2017

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