Document:

exv10w1

Exhibit 10.1

PURCHASE AND SALE AGREEMENT

Between

ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C.,

as Seller

And

VULCAN TIMBERLANDS LLC,

as Purchaser

 

 

TABLE OF CONTENTS

	 	 	 
	Article I Definitions
	 	1
	Section 1.1 Definitions
	 	1
	Article II Agreement; Purchase Price; Earnest Money
	 	3
	Section 2.1 Agreement of Purchase and Sale
	 	3
	Section 2.2 Purchase Price
	 	3
	Section 2.3 Earnest Money
	 	4
	Article III Closing
	 	4
	Section 3.1 Closing
	 	4
	Section 3.2 Seller’s Closing Deliveries
	 	4
	Section 3.3 Purchaser’s Closing Deliveries
	 	5
	Article IV Title
	 	5
	Section 4.1 Conveyance
	 	5
	Section 4.2 Title Commitments
	 	5
	Section 4.3 Title Insurance
	 	5
	Section 4.4 Other Agreements
	 	6
	Article V Inspection; acknowledgments; HSR Act
	 	6
	Section 5.1 Inspection; Boundary Marking
	 	6
	Section 5.2 Acknowledgment
	 	6
	Section 5.3 HSR Act
	 	7
	Article VI Thinnings Supply Agreement
	 	7
	Section 6.1 Thinnings Supply Agreement
	 	7
	Article VII Condition of Timber; Damage; Condemnation
	 	8
	Section 7.1 Condition of Timber
	 	8
	Section 7.2 Casualty
	 	8
	Section 7.3 Condemnation
	 	8
	Article VIII Warranties, Representations, and Disclaimers
	 	9
	Section 8.1 Seller’s Representations
	 	9
	Section 8.2 Purchaser’s Representations
	 	10
	Section 8.3 Survival
	 	11
	Section 8.4 Disclaimers
	 	11
	Article IX Commissions; Taxes; Expenses
	 	12
	Section 9.1 Brokerage Commission
	 	12
	Section 9.2 Taxes
	 	13
	Section 9.3 Expenses
	 	13
	Article X Conditions
	 	13
	Section 10.1 Mutual Conditions
	 	13
	Section 10.2 Conditions to Purchaser’s Obligations
	 	14
	Section 10.3 Conditions to Seller’s Obligations
	 	14
	Article XI Default; Remedies
	 	15
	Section 11.1 Default by Purchaser
	 	15
	Section 11.2 Default by Seller
	 	15

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	Article XII Intentionally Deleted
	 	15
	Article XIII Miscellaneous
	 	15
	Section 13.1 Assignment
	 	15
	Section 13.2 No Waiver
	 	15
	Section 13.3 Governing Law
	 	15
	Section 13.4 Notice
	 	16
	Section 13.5 Entire Agreement
	 	17
	Section 13.6 Captions
	 	17
	Section 13.7 Severability
	 	17
	Section 13.8 Counterparts
	 	17
	Section 13.9 Binding Effect
	 	17
	Section 13.10 Time of Essence
	 	17
	Section 13.11 No Survival
	 	17
	Section 13.12 Incorporation of Exhibits
	 	17
	Section 13.13 Confidentiality; Public Announcements
	 	17
	Section 13.14 Dispute Resolution
	 	18
	Section 13.15 Business Days
	 	18
	Section 13.16 Section 1031/1033 Exchange
	 	18

INDEX OF EXHIBITS

	 	 	 

	A

	 	Timber Stands
	B

	 	Legal Description of the Property
	C

	 	Form of Timber Deed
	D

	 	Form of Reliance Letter
	E

	 	Permitted Encumbrances
	F

	 	Form of Thinnings Supply Agreement

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PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT, made as of the 31st day of March, 2011 (the
“Effective Date”), by and between ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C., a Delaware
limited liability company (“Seller”); and VULCAN TIMBERLANDS LLC, a Delaware limited liability
company (“Purchaser”).

STATEMENT OF BACKGROUND

     A. Seller is the owner of all timber growing, standing and lying on that certain real
property located in Calhoun and Gulf Counties, Florida, identified on the timber stand maps shown
on Exhibit A attached hereto (the “Timber”).

     B. The Timber is located on those certain parcels of real property located in Calhoun and
Gulf Counties, Florida, which parcels are more particularly described on Exhibit B attached hereto
(the “Property”).

     C. Purchaser desires to acquire from Seller title and certain rights in and to the Timber,
and Seller desires to sell to Purchaser title and such rights in and to the Timber, all in
accordance with the terms of, and subject to the conditions set forth in, this Agreement.

STATEMENT OF AGREEMENT

     NOW, THEREFORE, in consideration of $10.00 in hand paid by Purchaser to Seller, the foregoing,
their respective representations, warranties, covenants and agreements set forth in this Agreement,
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. As used herein, the following terms will have the meanings
ascribed thereto:

     “Agreement” means this Purchase and Sale Agreement.

     “Business Day” means any day which is not a Saturday, Sunday or any state or federal holiday
for which financial institutions or post offices are generally closed in the State of Florida for
observance thereof.

     “Casualty Damage Value” means the amount of damage to the Timber resulting from a fire or
other casualty, calculated as the pre-casualty value of the destroyed or damaged Timber less the
salvage value of such destroyed or damaged Timber.

     “Closing” has the meaning set forth in Section 3.1.

     “Closing Date” has the meaning set forth in Section 3.1.

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     “Closing Statement” has the meaning set forth in Section 3.2(e).

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Disclosure Letter” means that certain Disclosure Letter dated as of the date hereof from
Seller to Purchaser disclosing certain agreements affecting the Property and/or the Timber.

     “Earnest Money” has the meaning set forth in Section 2.3.

     “Effective Date” has the meaning set forth in the first paragraph of this Agreement.

     “Exchange” has the meaning set forth in Section 13.16.

     “Hazardous Substance” means any chemical, compound, constituent, material, waste, contaminant
(including petroleum, crude oil or any fraction thereof) or other substance, defined as hazardous
or toxic, or otherwise regulated by any of the following laws and regulations promulgated
thereunder as amended from time to time prior to the Effective Date: (i) the Comprehensive
Environmental Response, Compensation and Liability Act (as amended by the Superfund Amendments and
Reauthorization Act), 42 U.S.C. § 9601 et seq.; (ii) the Resource Conservation and Recovery Act of
1976, 42 U.S.C. § 6901 et seq.; (iii) the Hazardous Materials Transportation Act, 49 U.S.C. § 1801
et seq.; (iv) the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; (v) the Clean Water Act,
33 U.S.C. § 1251 et seq.; (vi) the Clean Air Act, 42 U.S.C. § 1857 et seq.; and (vii) all laws of
the State of Florida that are based on, or substantially similar to, the federal statutes listed in
clauses (i) through (vi) of this sentence.

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

     “Net Condemnation Proceeds” has the meaning set forth in Section 7.3.

     “Permitted Encumbrances” has the meaning set forth in Section 4.1.

     “Phase I Report” means that certain Phase I Environmental Site Assessment dated October 2010,
Project No. 110.00235.00023, prepared by SLR International Corporation with respect to the Property
and obtained by Seller, together with that certain “Addendum No. 1; Phase I Environmental Site
Assessment Report; Tranche 1; Calhoun and Gulf Counties, Florida” dated January 19, 2011, by SLR
International Corporation.

     “Property” has the meaning set forth in the Statement of Background of this Agreement.

     “Purchase Price” has the meaning set forth in Section 2.2.

     “Purchaser” has the meaning set forth in the first paragraph of this Agreement.

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     “Purchaser Parties” means Purchaser and all of its officers, directors, shareholders,
employees, partners, members, subsidiaries and other affiliated or related entities,
representatives, consultants and agents, and Purchaser’s and each of the foregoing parties’
successors and assigns.

     “Purchaser’s Release” has the meaning set forth in Section 5.2.

     “Seller” has the meaning set forth in the first paragraph of this Agreement.

     “Seller Parties” means Seller and all of Seller’s officers, directors, shareholders,
employees, partners, members, subsidiaries and other affiliated or related entities,
representatives, consultants and agents, and Seller’s and each of the foregoing parties’ successors
and assigns.

     “Seller’s Advisor” means Raymond James & Associates, Inc.

     “Thinnings Supply Agreement” has the meaning set forth in Section 6.1.

     “Threshold Amount” has the meaning set forth in Section 7.2.

     “Timber” has the meaning set forth in the Statement of Background of this Agreement.

     “Timber Deed” and “Timber Deeds” have the meaning set forth in Section 3.2(a).

     “Title Commitment” and “Title Commitments” have the meaning set forth in Section 4.2.

     “Title Company” means First American Title Insurance Company.

     “Wood Fiber Supply Agreement” means that certain Wood Fiber Supply Agreement dated as of July
1, 2000, by and between Seller and Jefferson Smurfit Corporation (U.S.) d/b/a Smurfit-Stone
Container Corporation, a Delaware corporation.

ARTICLE II

AGREEMENT; PURCHASE PRICE; EARNEST MONEY

     Section 2.1 Agreement of Purchase and Sale. Subject to the provisions of this Agreement,
and for the consideration herein stated, Seller agrees to sell the Timber to Purchaser and
Purchaser agrees to buy the same from Seller, together with the right to maintain, manage, store,
cut, harvest and remove the Timber from the Property.

     Section 2.2 Purchase Price. The purchase price (the “Purchase Price”) to be paid by
Purchaser for the Timber shall be the sum of FIFTY-FIVE MILLION NINE HUNDRED THOUSAND and NO/100
Dollars ($55,900,000.00), less a credit for the Earnest Money and subject to adjustment as set
forth in this Agreement.

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     Section 2.3 Earnest Money. Pursuant to that certain letter of intent dated February 3,
2011, between Seller and RMS Forest Growth III, L.P. (an affiliate of Purchaser), RMS Forest Growth
III, L.P., previously delivered to Seller for the benefit of Purchaser a payment equal to FOUR
HUNDRED THOUSAND and NO/100 Dollars ($400,000.00). Notwithstanding anything in such letter of
intent to the contrary, such $400,000 payment shall constitute the “Earnest Money” in accordance
with the terms hereof. Seller shall continue to hold the Earnest Money. At the Closing, the
Earnest Money shall be applied as a credit against the Purchase Price. If the Closing does not
occur, the Earnest Money shall be retained by Seller or returned to Purchaser in accordance with
the terms of this Agreement. Seller shall have no obligation to hold the Earnest Money in a
separate account for the benefit of Purchaser. Any interest accrued on the Earnest Money shall be
the property of Seller.

ARTICLE III

CLOSING

     Section 3.1 Closing. The execution and delivery of the documents and instruments for the
consummation of the purchase and sale pursuant hereto (the “Closing”) shall take place on March 31,
2011 (the “Closing Date”), at 10:00 a.m. at the offices of Sutherland Asbill & Brennan LLP, 999
Peachtree Street, N.E., Atlanta, Georgia 30309, or through the escrow services of the Title Company
upon the mutual agreement of Purchaser and Seller, or such earlier date and time, or such other
location, as may be mutually agreeable to Purchaser and Seller. The Closing Date is subject to
extension only as specifically provided in this Agreement.

     Section 3.2 Seller’s Closing Deliveries. At the Closing, Seller shall deliver the
following items:

          (a) one executed special warranty timber deed in the form of Exhibit C attached hereto
with respect to each county in Florida in which the Timber is located (each, a “Timber Deed,” and
collectively the “Timber Deeds”), subject only to the Permitted Encumbrances (as defined below);

          (b) an executed counterpart of the Thinnings Supply Agreement;

          (c) an executed affidavit as to the non-foreign status of Seller;

          (d) an executed counterpart of a closing statement in form mutually agreeable to Seller
and Purchaser in their reasonable discretion (the “Closing Statement”);

          (e) a reliance letter substantially in the form of Exhibit D attached hereto in favor of
Purchaser and executed by SLR International Corp., with respect to the Phase I Report (as defined
below); and

          (f) such other certificates, affidavits (including an owner’s affidavit in favor of the
Title Company), evidence of authority and instruments as may be reasonably necessary or desirable
to consummate the purchase and sale contemplated hereby and to enable

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Purchaser to obtain a title insurance policy insuring Purchaser’s title to the Timber, subject
to the Permitted Encumbrances.

     Section 3.3 Purchaser’s Closing Deliveries. At the Closing, Purchaser shall deliver the
following items:

          (a) the Purchase Price, less a credit for the Earnest Money and subject to adjustment as
set forth in this Agreement;

          (b) executed counterparts of the Timber Deeds;

          (c) an executed counterpart of the Thinnings Supply Agreement;

          (d) an executed counterpart of the Closing Statement; and

          (e) such other certificates, affidavits, evidence of authority and instruments as may be
reasonably necessary or desirable to consummate the purchase and sale contemplated hereby and to
enable Purchaser to obtain a title insurance policy insuring Purchaser’s title to the Timber,
subject to the Permitted Encumbrances.

ARTICLE IV

TITLE

     Section 4.1 Conveyance. Seller agrees to convey to Purchaser title to the Timber by, and
subject to the terms of, the Timber Deeds, free and clear of all liens, encumbrances, assessments,
agreements, options and covenants, except for the Permitted Encumbrances set forth on Exhibit E
attached hereto (the “Permitted Encumbrances”).

     Section 4.2 Title Commitments. Purchaser acknowledges that (a) prior to the Effective
Date, Purchaser has received, reviewed and approved commitments to insure Purchaser’s title to the
Timber upon the Closing, together with copies of all documents, instruments, surveys and plats as
referenced in the commitments and in any instruments referenced therein (each a “Title Commitment”
and, collectively, the “Title Commitments”), issued by the Title Company, and (b) Purchaser waives
any right to object to any matter disclosed by any of the Title Commitments, as the same may have
been amended and/or modified, prior to the Effective Date, to satisfy any objections of Purchaser.
Notwithstanding the foregoing, Seller shall be obligated (i) to cure, on or before the Closing
Date, all liens, mortgages or financing statements encumbering the Timber and securing a monetary
obligation which was created or suffered by Seller or any party claiming by, through or under
Seller (other than liens for non-delinquent real estate taxes or assessments), and (ii) to obtain
the release of the Timber, on or before the Closing Date, from the Wood Fiber Supply Agreement and
any recorded memoranda related thereto.

     Section 4.3 Title Insurance. Purchaser shall purchase at the Closing an owner’s title
insurance policy, based on the Title Commitments, as the same may have been amended and/or
modified, prior to the Effective Date, to satisfy any objections of Purchaser, insuring Purchaser’s
title to the Timber. Purchaser shall acquire such policy from the Title Company or another title
insurance company selected by Purchaser, provided that the Closing

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shall not be delayed as a result of Purchaser’s election of a title insurance company other
than the Title Company.

     Section 4.4 Other Agreements. Until the occurrence of the Closing, Seller shall not,
without the prior written consent of Purchaser, (i) lease, encumber or convey all or part of the
Timber or the Property or any interest therein, or (ii) enter into any agreement granting to any
person any right with respect to the Timber or any portion thereof; provided, however, Seller shall
have the right, exercisable in its sole discretion, to enter into any agreement affecting the
Property which agreement does not affect Purchaser’s title to or rights in and to the Timber.

ARTICLE V

INSPECTION; ACKNOWLEDGMENTS; HSR ACT

     Section 5.1 Inspection; Boundary Marking.

          (a) Purchaser and its agents, representatives, employees, engineers and contractors shall
have the right during the term of this Agreement to enter upon the Property to inspect, examine and
survey the Property and the Timber as it may deem necessary or advisable; provided, however, that
Purchaser shall obtain the written consent of Seller prior to conducting any core sampling, test
borings or other invasive testing.

          (b) Purchaser shall have the right to physically mark the boundaries of the Timber using
contractors, methods and materials selected by Purchaser in cooperation with Seller, provided that
Seller shall not unreasonably withhold, condition or delay its approval of any such contractor,
method or material. The costs of such boundary marking shall be borne as set forth in Section
9.3.

          (c) Purchaser and the contractors, representatives and agents of Purchaser who enter upon
the Property shall maintain commercial general liability insurance, naming Seller as an additional
insured, in an amount not less than $2,000,000 and, prior to any such entry upon the Property,
shall provide Seller with written evidence of such insurance. Purchaser hereby agrees to indemnify
and hold Seller harmless for any and all cost and expense resulting from claims or damages caused
by said entry upon the Property and the inspections, examinations, tests and boundary markings.
The foregoing indemnification shall survive any termination, cancellation or expiration of this
Agreement or the Closing.

     Section 5.2 Acknowledgment. Notwithstanding the inspection rights provided in Section
5.1, Purchaser expressly acknowledges and agrees (a) that Purchaser has had the opportunity, prior
to the Effective Date, to fully and carefully investigate and inspect the physical, structural and
environmental condition of the Property and the Timber and to review and analyze documents and
records related to the Property and the Timber, all matters of title related to the Property and
the Timber, all laws, statutes, rules, regulations, ordinances and orders affecting the Property
and the Timber, and all other materials and information affecting or in any manner relating to the
Property and the Timber and the ownership, use, occupancy, management, operation and maintenance
thereof, (b) that Purchaser has received and reviewed the Phase I Report, (c) that Purchaser has
had the opportunity to inspect and review the materials with respect to the Property and the Timber
available in the electronic data room maintained by

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Seller’s Advisor, and (d) that Purchaser is satisfied with the results of such review,
inspection and analysis. Purchaser, on behalf of the Purchaser Parties, hereby expressly waives,
relinquishes and releases any and all rights, remedies and claims any of the Purchaser Parties may
now or hereafter have, against the Seller Parties, whether known or unknown, arising from or
related to (i) the physical condition, quality, quantity and state of repair of the Property or the
Timber and the prior management and operation thereof; (ii) the failure of the Property or the
Timber to comply with any federal, state or local laws, regulations, ordinances or orders,
including, without limitation, those relating to health, safety, zoning, endangered species and the
environment; or (iii) any past, present or future presence, alleged presence, release or alleged
release of any Hazardous Substance in, on, under or about, or otherwise migrating to, from, across
or under, the Property or the Timber (collectively, “Purchaser’s Release”). Purchaser’s Release
shall survive any termination, cancellation or expiration of this Agreement or the Closing;
provided, however, Purchaser’s Release does not include any and all rights, remedies and claims
that the Purchaser Parties have or may have with respect to any release by Seller of any Hazardous
Substance first occurring after the Closing Date in, on, under or about, or otherwise migrating to,
from, across or under, the Property or the Timber.

     Section 5.3 HSR Act. If counsel for either Purchaser or Seller has a good faith
reasonable belief that any closing of the transactions contemplated under this Agreement requires
the filing of a pre-merger notification under the HSR Act, each of Purchaser and Seller shall
promptly file any notification and report forms and related material that it may be required to
file with the Federal Trade Commission or the Antitrust Division of the U.S. Department of Justice
under the HSR Act, shall use its diligent, good faith efforts to obtain a waiver of the applicable
waiting period, shall make any filings pursuant thereto that may be necessary, and shall cooperate
and coordinate with the other party in connection with such filings and returns. Purchaser and
Seller shall each pay one-half of any filing fees required in connection with any filings required
by this Section 5.3. The Closing Date shall be extended to the extent necessary to permit the
compliance with all procedures set forth in this Section 5.3, provided that if the parties have not
received the applicable approvals, or if all applicable waiting periods have not expired, on or
before April 29, 2011, then either Seller or Purchaser will have the right, exercisable at its sole
election, to terminate this Agreement by delivering written notice to the other party, whereupon
Seller will return the Earnest Money to Purchaser, and the parties hereto shall have no further
rights or obligations hereunder (except as otherwise expressly provided herein).

ARTICLE VI

THINNINGS SUPPLY AGREEMENT

     Section 6.1 Thinnings Supply Agreement. At the Closing, Purchaser and Seller shall
enter into a Thinnings Supply Agreement in the form of Exhibit F attached hereto (the “Thinnings
Supply Agreement”) pursuant to which Seller shall have the right and the obligation to acquire
certain volumes of Timber from Purchaser, as more particularly described therein.

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ARTICLE VII

CONDITION OF TIMBER; DAMAGE; CONDEMNATION

     Section 7.1 Condition of Timber. Seller agrees that at the Closing the Timber shall be in
substantially the same condition as exists on the Effective Date, subject to natural wear and tear,
the Permitted Encumbrances, condemnation, and casualties beyond Seller’s control. Subject to the
provisions of this Article VII, all risk of loss to the Timber or any part thereof prior to the
Closing shall be borne by Seller.

     Section 7.2 Casualty. If at any time on or after February 3, 2011, but prior to the
Closing, the Timber or any part thereof is destroyed or damaged by fire or other casualty, Seller
shall deliver to Purchaser, promptly following Seller’s discovery of such casualty, written notice
of such damage along with the Casualty Damage Value, and the transactions contemplated by this
Agreement shall be subject to the provisions of this Section 7.2. The Closing Date shall be
extended to the extent necessary to permit the compliance with all procedures set forth in this
Section 7.2.

          (a) If the Casualty Damage Value does not exceed one percent (1%) of the Purchase Price
(the “Threshold Amount”), then Purchaser shall be required to purchase the Timber in accordance
with this Agreement without a reduction of the Purchase Price.

          (b) If the Casualty Damage Value exceeds the Threshold Amount, then Purchaser shall be
required to purchase the Timber in accordance with this Agreement, provided that the Purchase Price
shall be reduced by an amount equal to the difference of (i) the Casualty Damage Value, minus (ii)
the Threshold Amount.

          (c) If Purchaser, by delivering written notice to Seller within ten (10) days following
Seller’s delivery of written notice of the damage, disputes the Casualty Damage Value reported by
Seller, Purchaser and Seller shall attempt in good faith to resolve such dispute and agree upon the
Casualty Damage Value. If Purchaser and Seller are unable to agree as to the Casualty Damage Value
on or before ten (10) days after Purchaser delivers to Seller written notice of its dispute, then
such dispute shall be resolved in accordance with Section 13.14. The Closing Date shall be
extended to the extent necessary to allow for the resolution of such dispute.

     Section 7.3 Condemnation. If at any time prior to the Closing, any action or proceeding
is filed or threatened under which any portion of the Timber may be taken pursuant to any law,
ordinance or regulation by condemnation or the right of eminent domain, Seller shall deliver to
Purchaser prompt written notice thereof. In such event, Purchaser and Seller shall be required to
consummate the transactions contemplated by this Agreement, and Purchaser shall receive a credit
against the Purchase Price in the amount of all proceeds of any awards from such action or
proceeding with respect to the Property that are attributable to the Timber, less any expenses
incurred by Seller in securing such condemnation awards (the “Net Condemnation Proceeds”), or, if
such amount is not known at the time of the Closing, the Purchase Price shall not be reduced and
Seller shall assign to Purchaser at the Closing all of Seller’s right to the Net Condemnation
Proceeds with respect to the Property that are attributable to the Timber.

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ARTICLE VIII

WARRANTIES, REPRESENTATIONS, AND DISCLAIMERS

     Section 8.1 Seller’s Representations. Seller hereby warrants and represents to Purchaser,
as of the Effective Date and as of the Closing Date, that:

          (a) Seller is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware, is qualified to do business in the State of
Florida and has all requisite corporate power and authority to: (i) own, lease and operate the
Property and to carry on its business as now being conducted; (ii) execute this Agreement and all
other agreements, instruments and documents to be executed by it in connection with the
consummation of the transactions contemplated by this Agreement; and (iii) perform its obligations
and consummate the transactions contemplated hereby.

          (b) The execution, delivery and performance of this Agreement and the consummation of
transactions contemplated hereby by Seller have been duly and validly authorized by all necessary
company action, and no other company proceedings on the part of Seller are necessary for it to
authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has
been duly and validly executed and delivered by Seller and, assuming due authorization, execution
and delivery by Purchaser, is a legal, valid and binding obligation of Seller, enforceable against
Seller in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

          (c) The execution, delivery or performance of this Agreement by Seller will not result in
a breach or violation of, or default under, (i) the terms, conditions or provisions of Seller’s
certificate of organization, operating agreement or any other governing documents; (ii) any law
applicable to Seller or any portion of the Timber; or (iii) any permit, license, order, judgment or
decree of any governmental authority by which Seller or the Timber is or may be bound, excluding
from the foregoing clauses (ii) and (iii) such breaches, violations or defaults that would not be
reasonably likely, individually or in the aggregate, to have an adverse effect on the Timber or on
Seller’s ability to perform its obligations under this Agreement.

          (d) There are no approvals, consents or registration requirements with respect to any
governmental authority that are or will be necessary for the valid execution and delivery by Seller
of this Agreement, or the consummation of the transactions contemplated hereby, other than those
which (i) have been obtained, or (ii) are of a routine nature and not customarily obtained or made
prior to execution of purchase and sale agreements in transactions similar in nature and size to
those contemplated hereby and where the failure to obtain the same would not, individually or in
the aggregate, have a material adverse effect on the Timber or on Seller’s ability to perform its
obligations under this Agreement.

          (e) There is no pending or, to Seller’s knowledge, threatened action or proceeding
(including, but not limited to, any condemnation or eminent domain action or proceeding) before any
court, governmental agency or arbitrator which may materially adversely affect Seller’s ability to
perform this Agreement or which may materially adversely affect the

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Timber. For purposes of this Section 8.1(e), “Seller’s knowledge” shall mean the actual
knowledge, without any duty on the part of such individuals to investigate or inquire into any
particular matter, of (i) William Sonnenfeld, Senior Vice President — Forestry and Land Sales; and
(ii) David Harrelson, Vice President — Timberland.

          (f) Seller (which for this purpose includes Seller’s partners, members, principal
stockholders and any other constituent entities) (i) has not been designated as a “specifically
designated national and blocked person” on the most current list published by the U.S. Treasury
Department Office of Foreign Assets Control at its official website,
<http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf> or at any replacement
website or other replacement official publication of such list and (ii) is currently in compliance
with and will at all times during the term of this Agreement remain in compliance with the
regulations of the Office of Foreign Asset Control of the Department of the Treasury and any
statute, executive order (including the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or
other governmental action relating thereto.

     Section 8.2 Purchaser’s Representations. Purchaser hereby warrants and represents to
Seller, as of the Effective Date and as of the Closing Date, that:

          (a) Purchaser is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has all requisite power and authority to:
(i) own the Timber and to carry on its business as now being conducted; (ii) execute this
Agreement; and (iii) perform its obligations and consummate the transactions contemplated hereby.

          (b) The execution, delivery and performance of this Agreement and the consummation of
transactions contemplated hereby by Purchaser have been duly and validly authorized by all
necessary company action, and no other company proceedings on the part of Purchaser are necessary
for it to authorize this Agreement or to consummate the transactions contemplated hereby. This
Agreement has been duly and validly executed and delivered by Purchaser and, assuming due
authorization, execution and delivery by Seller, is a legal, valid and binding obligation of
Purchaser, enforceable against Purchaser in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles.

          (c) The execution, delivery, and performance by Purchaser of this Agreement will not
result in a breach or violation of, or default under, the terms, conditions or provisions of its
articles of incorporation, bylaws or any standing resolution of its board of directors, members or
managers (as the case may be) or any other corporate document.

          (d) There are no approvals, consents or registration requirements with respect to any
governmental authority that are or will be necessary for the valid execution and delivery by
Purchaser of this Agreement, or the consummation of the transactions contemplated hereby, other
than those which (i) have been obtained, or (ii) are of a routine nature and not customarily
obtained or made prior to execution of purchase and sale agreements in transactions

10

 

similar in nature and size to those contemplated hereby and where the failure to obtain the
same would not, individually or in the aggregate, have a material adverse effect on Purchaser’s
ability to perform its obligations under this Agreement.

          (e) There is no pending or, to Purchaser’s knowledge, threatened action or proceeding
before any court, governmental agency or arbitrator which may materially adversely affect
Purchaser’s ability to perform this Agreement.

          (f) Purchaser has the financial capacity, or is diligently using its best efforts to
obtain the financial capacity, to pay the Purchase Price payable at the Closing and all expenses
and fees incurred by Purchaser pursuant to or in connection with the transactions contemplated by
this Agreement.

          (g) Purchaser (which for this purpose includes Purchaser’s partners, members, principal
stockholders and any other constituent entities) (i) has not been designated as a “specifically
designated national and blocked person” on the most current list published by the U.S. Treasury
Department Office of Foreign Assets Control at its official website,
<http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf> or at any replacement
website or other replacement official publication of such list and (ii) is currently in compliance
with and will at all times during the term of this Agreement remain in compliance with the
regulations of the Office of Foreign Asset Control of the Department of the Treasury and any
statute, executive order (including the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or
other governmental action relating thereto.

     Section 8.3 Survival. The representations and warranties contained in Section 8.1 and
Section 8.2 shall survive the Closing for six (6) months.

     Section 8.4 Disclaimers.

          (a) PURCHASER ACKNOWLEDGES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH
IN THIS AGREEMENT OR IN THE DOCUMENTS TO BE DELIVERED AT THE CLOSING: (i) NO REPRESENTATIONS,
WARRANTIES OR PROMISES, EXPRESS OR IMPLIED, HAVE BEEN OR ARE BEING MADE BY OR ON BEHALF OF SELLER
OR ANY OTHER PERSON WITH RESPECT TO THE PROPERTY OR THE TIMBER, INCLUDING WITH RESPECT TO THE
PHYSICAL OR ENVIRONMENTAL CONDITION, HABITABILITY, QUANTITY OR QUALITY OF THE TIMBER, NURSERY STOCK
OR SEEDLINGS, FUTURE FIBER GROWTH OR HARVEST, FUTURE FINANCIAL RESULTS FROM THE SALE OF THE TIMBER,
MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SELLER HEREBY EXPRESSLY
DISCLAIMS ALL WARRANTIES, EITHER EXPRESS OR IMPLIED RELATING TO ANY OF THE FOREGOING MATTERS, AND
(ii) IN ENTERING INTO THIS AGREEMENT, PURCHASER HAS NOT RELIED AND DOES NOT RELY ON ANY SUCH
REPRESENTATION, WARRANTY OR PROMISE, EXPRESS OR IMPLIED, BY OR ON BEHALF OF SELLER OR ANY OTHER
PERSON. PURCHASER ACKNOWLEDGES AND AGREES THAT PURCHASER SHALL TAKE THE TIMBER IN “AS IS, WHERE
IS, AND WITH ALL FAULTS” CONDITION ON THE

11

 

CLOSING DATE,EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN THE DOCUMENTS TO BE DELIVERED
AT THE CLOSING.

          (b) UPON THE CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING
ADVERSE ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY SELLER’S OR PURCHASER’S
INVESTIGATION, AND UPON THE CLOSING, PURCHASER SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND
RELEASED SELLER FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF
ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND
COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE
ASSERTED OR ALLEGED AGAINST SELLER AT ANY TIME BY REASON OF OR ARISING OUT OF PHYSICAL CONDITIONS,
VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER ACTS,
OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE TIMBER OR THE PROPERTY. PURCHASER AGREES
THAT SELLER SHALL HAVE NO LIABILITY OR RESPONSIBILITY TO PURCHASER FOR ANY INVESTIGATION, CLEAN-UP,
REMEDIATION, CORRECTIVE ACTION OR REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ADVERSE ENVIRONMENTAL
CONDITIONS ON THE PROPERTY OR AFFECTING THE TIMBER AFTER THE CLOSING.

          (c) Purchaser acknowledges that all information with respect to the Property and the
Timber delivered or made available by Seller to Purchaser under this Agreement is for informational
purposes only and, except as expressly set forth to the contrary in this Agreement, is given
without representation or warranty of any kind.

          (d) Radon is a naturally occurring radioactive gas which, when it has accumulated in a
building in sufficient quantities, may present health risks to persons who are exposed to it over
time. Levels of radon which exceed federal and state guidelines have been found in buildings in
Florida. Additional information regarding radon and radon testing may be obtained from the county
public health unit.

          (e) The disclaimers, acknowledgments and waivers in this Section 8.4 shall survive the
Closing without limitation.

ARTICLE IX

COMMISSIONS; TAXES; EXPENSES

     Section 9.1 Brokerage Commission. Seller warrants and represents to Purchaser that, other
than with respect to the services of Seller’s Advisor, Seller has not incurred any liability for
any brokerage fee or commission in connection with the execution and delivery of this Agreement or
the consummation of the transactions contemplated hereby, and the payment of Seller’s Advisor shall
be the sole obligation of Seller. Purchaser warrants and represents to Seller that Purchaser has
not incurred any liability for any brokerage fee or commission in connection with the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby. Seller and
Purchaser each agree to

12

 

indemnify and hold harmless the other from any and all damage, loss, liability, expense and
claim (including but not limited to attorneys’ fees and court costs) arising with respect to any
such fee or commission which may be suffered by the indemnified party by reason of any action or
agreement of the indemnifying party. This Section 9.1 shall survive the termination, cancellation
or expiration of this Agreement.

     Section 9.2 Taxes. Ad valorem real property taxes and special assessments against the
Property and the Timber shall be paid by the Seller during the term of the Timber Deed, and Seller
shall indemnify and hold Purchaser harmless from any claim of payment of ad valorem real property
taxes and assessments against the Property and/or the Timber during said period of time. The
obligations of this Section 9.2 shall survive the Closing.

     Section 9.3 Expenses.

          (a) Purchaser shall pay all costs in connection with the recording of the Timber Deeds,
all costs of purchasing a title insurance policy and any endorsements thereto, all costs of
Purchaser’s due diligence, all costs of Purchaser’s legal representation, one-half (1/2) of all
transfer taxes, one-half (1/2) of all escrow expenses of the Title Company and one-half (1/2) of
the reasonable third-party costs of marking the boundaries of any portions of the Timber that are
adjacent to timber stands retained by Seller (provided that Purchaser shall bear all costs of
marking any boundary lines of any other portion of the Timber, including portions adjacent to
roads, rights of way, streamside management zones, bodies of water or other property owners).

          (b) Seller shall pay all costs of Seller’s Advisor, all costs of Seller’s legal
representation, all costs of searching title and preparing the Title Commitments, all costs of the
Phase I Report, one-half (1/2) of all transfer taxes, one-half (1/2) of all escrow expenses of the
Title Company and one-half (1/2) of the cost of marking the boundaries of any portions of the
Timber that are adjacent to timber stands retained by Seller (provided that Purchaser shall bear
all costs of marking any boundary lines of any other portion of the Timber, including portions
adjacent to roads, rights of way, streamside management zones, bodies of water or other property
owners).

          (c) Except as set forth in this Agreement, all other costs shall be borne by the party
incurring them.

ARTICLE X

CONDITIONS

     Section 10.1 Mutual Conditions. The obligations of each of Seller and Purchaser to
consummate the transactions contemplated by this Agreement shall be subject to the satisfaction or
waiver, on or before the Closing Date, of the following conditions:

          (a) Subject to Section 5.3, all waiting periods (and any extension thereof) under laws
applicable to the transactions contemplated by this Agreement (including the HSR Act, if
applicable) shall have expired or been earlier terminated.

          (b) There shall be no injunction, restraining order or decree of any nature of any court
or governmental authority that is in effect that restrains or prohibits the

13

 

consummation of the transactions contemplated by this Agreement or imposes conditions on such
consummation not otherwise provided for herein.

          (c) Neither Purchaser nor Seller shall have been advised by any United States federal or
state government agency, commission, department or authority (which advisory has not been
officially withdrawn on or prior to the Closing Date) that such government entity is investigating
the transactions contemplated by this Agreement to determine whether to file or commence any
litigation that seeks or would seek to enjoin, restrain or prohibit the consummation of the
transactions contemplated by this Agreement.

In the event any of the above conditions is not satisfied on or before the Closing, either Seller
or Purchaser will have the right, exercisable at its sole election, to terminate this Agreement by
delivering written notice to the other party before the Closing, whereupon Seller will return the
Earnest Money to Purchaser, and the parties hereto shall have no further rights or obligations
hereunder (except as otherwise expressly provided herein); provided, however, if any such condition
is not satisfied on or before the Closing as a result of a breach of a representation or warranty
by Purchaser or Seller hereunder or as a result of any other default hereunder by Purchaser or
Seller, then this Section 10.1 shall not apply and such breach or other default shall be governed
by Article XI.

     Section 10.2 Conditions to Purchaser’s Obligations. Unless waived by Purchaser, the
obligations of Purchaser under this Agreement are expressly made subject to the fulfillment in all
respects of the following conditions precedent:

          (a) the truth and accuracy as of the Closing Date, in all material respects, of each and
every warranty and representation herein made by Seller;

          (b) Seller’s timely performance of and compliance with, in all material respects, each and
every term, condition, agreement, restriction and obligation to be performed and complied with by
Seller under this Agreement; and

          (c) Seller’s obtaining of all company approvals, consents and authorizations as may be
required for Seller to consummate the transaction contemplated by this Agreement.

In the event any of the above conditions is not satisfied on or before the Closing, Purchaser will
have the right, exercisable at Purchaser’s sole election, to exercise the remedies described in
Section 11.2.

     Section 10.3 Conditions to Seller’s Obligations. Unless waived by Seller, the obligations
of Seller under this Agreement are expressly made subject to the fulfillment in all respects of the
following conditions precedent:

          (a) the truth and accuracy as of the Closing Date, in all material respects, of each and
every warranty and representation herein made by Purchaser;

14

 

          (b) Purchaser’s timely performance of and compliance with, in all material respects, each
and every term, condition, agreement, restriction and obligation to be performed and complied with
by Purchaser under this Agreement; and

          (c) Purchaser’s obtaining of all company approvals, consents and authorizations as may be
required for Purchaser to consummate the transaction contemplated by this Agreement.

In the event any of the above conditions is not satisfied on or before the Closing, Seller will
have the right, exercisable at Seller’s sole election, to exercise the remedies described in
Section 11.1.

ARTICLE XI

DEFAULT; REMEDIES

     Section 11.1 Default by Purchaser. If the purchase and sale of the Timber contemplated
hereby is not consummated because of a default by Purchaser under this Agreement, then Seller shall
retain the Earnest Money as full liquidated damages and not as a penalty and as Seller’s sole and
exclusive remedy against Purchaser for a default by Purchaser under this Agreement (Purchaser and
Seller acknowledging that Seller’s damages as a result of such default are not capable of exact
ascertainment and that said liquidated damages are fair and reasonable).

     Section 11.2 Default by Seller. If the purchase and sale of the Timber contemplated
hereby is not consummated because of a default by Seller then Purchaser shall be entitled either to
a refund of the Earnest Money or to sue Seller for specific performance, Purchaser hereby
acknowledging that the foregoing shall be its sole and exclusive remedies against Seller for a
default by Seller under this Agreement.

ARTICLE XII

INTENTIONALLY DELETED

ARTICLE XIII

MISCELLANEOUS

     Section 13.1 Assignment. Except as otherwise expressly contemplated by this Agreement,
neither party shall assign its rights or obligations hereunder, in whole or in part, without the
prior written consent of the other party, given or withheld in its sole discretion.

     Section 13.2 No Waiver. No action or failure to act by any party shall constitute a
waiver of any right or duty afforded to such party under this Agreement, nor shall any such action
or failure to act constitute an approval of or acquiescence in any breach of this Agreement except
as may be specifically agreed in writing.

     Section 13.3 Governing Law. This Agreement shall be governed in all respects, including
validity, construction, interpretation and effect, by the laws of the State of Florida, without
giving effect to its principles or rules of conflicts of law to the extent such principles or rules
would require or permit the application of the laws of another jurisdiction.

15

 

     Section 13.4 Notice. Any and all notices required or permitted under this Agreement shall
be made or given in writing and shall be delivered in person or sent by postage, pre-paid, United
States Mail, certified or registered, return receipt requested, or by a recognized overnight
carrier, or by facsimile or e-mail, to the applicable party or at the addresses set forth below, or
such other address as may be furnished by notice in accordance with this Section 13.4; provided,
however, if any delivery is made by facsimile or e-mail, such delivery shall be deemed delivered
only if the party giving such notice obtains a confirmation of receipt and delivers such notice by
hand delivery, United States mail or recognized overnight carrier for next day delivery. All
notices shall be deemed given and effective upon the earliest to occur of: (i) the confirmed
facsimile or e-mail transmission or hand delivery of such notice to the address for notices; (ii)
one Business Day after the deposit of such notice with an overnight courier service by the time
deadline for next day delivery addressed to the address for notices; or (iii) three Business Days
after depositing the notice in the United States mail.

	 	 	 

	     Seller:
	 	St. Joe Timberland Company of Delaware, L.L.C.
	 
	 	133 South WaterSound Parkway
	 
	 	WaterSound, FL 32413
	 
	 	Attention: William Sonnenfeld
	 
	 	Fax: 850-588-2307
	 
	 	Email:william.sonnenfeld@joe.com
	 
	 	 
	     with a copy to:
	 	St. Joe Timberland Company of Delaware, L.L.C.
	 
	 	133 South WaterSound Parkway
	 
	 	WaterSound, FL 32413
	 
	 	Attention: Reece B. Alford, Esq.
	 
	 	Fax: 850-588-2310
	 
	 	Email:reece.alford@joe.com
	 
	 	 
	     and to:
	 	Sutherland Asbill & Brennan LLP
	 
	 	999 Peachtree Street, N.E.
	 
	 	Atlanta, Georgia 30309
	 
	 	Attention: Victor P. Haley, Esq.
	 
	 	Fax: 404-853-8806
	 
	 	Email:victor.haley@sutherland.com
	 
	 	 
	     Purchaser:
	 	Vulcan Timberlands LLC
	 
	 	Attn: Resource Management Services, LLC
	 
	 	its Manager
	 
	 	31 Inverness Center Parkway, Suite 360
	 
	 	Birmingham, AL 35242
	 
	 	Fax: (205) 991-2807
	 
	 	Email: esweeten@resourcemgt.com

16

 

	 	 	 

	     with a copy to:
	 	Martin Snow, LLP
	 
	 	Attn: Wendell L. Bowden
	 
	 	240 Third Street (31201)
	 
	 	PO Box 1606 (31202-1606)
	 
	 	Macon, GA
	 
	 	Fax: (478) 743-4204
	 
	 	Email: wlbowden@martinsnow.com

     Section 13.5 Entire Agreement. This Agreement contains the entire agreement between the
parties hereto with respect to the subject matter hereof and cannot be amended or supplemented
except by a written agreement signed by the parties hereto.

     Section 13.6 Captions. The captions of sections in this Agreement are for convenience and
reference only and are not part of the substance hereof.

     Section 13.7 Severability. In the event that any one or more of the provisions, sections,
words, clauses, phrases or sentences contained in this Agreement, or the application thereof in any
circumstance is held invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision, section, word, clause, phrase or sentence in
every other respect and of the remaining provisions, sections, words, clauses, phrases or sentences
of this Agreement, shall not be in any way impaired, it being the intention of the parties hereto
that this Agreement shall be enforceable to the fullest extent permitted by law.

     Section 13.8 Counterparts. This Agreement may be executed in several counterparts, each
of which may be deemed an original, and all of such counterparts together shall constitute one and
the same Agreement. This Agreement may be executed by each party hereto upon a separate copy and
attached to another copy in order to form on or more counterparts.

     Section 13.9 Binding Effect. This Agreement shall bind the parties hereto and their
respective heirs, legal representatives, successors and assigns.

     Section 13.10 Time of Essence. Time is of the essence of this Agreement.

     Section 13.11 No Survival. Except as may otherwise expressly be provided herein, the
provisions of this Agreement shall not survive the Closing and shall be merged into the delivery of
the Timber Deeds and other documents and the payment of all monies pursuant hereto.

     Section 13.12 Incorporation of Exhibits. All exhibits referred to in this Agreement are
hereby incorporated herein by this reference.

     Section 13.13 Confidentiality; Public Announcements. The terms and conditions of the
transactions contemplated in this Agreement shall remain confidential, except that either Purchaser
or Seller and their respective affiliates may disclose the terms and provisions of this Agreement
(i) to the extent that such party is required by applicable law (including the rules and
regulations promulgated by the SEC or any stock exchange) to make

17

 

public disclosure, or (ii) in any legal proceeding, including any audit, to the extent
necessary to enforce any rights under this Agreement, provided that, in either case, the disclosing
party shall provide the other party with prior notice of such disclosure and the content thereof.
This Section 13.13 shall survive any termination, cancellation or expiration of this Agreement or
the Closing.

     Section 13.14 Dispute Resolution. If Purchaser and Seller are unable to agree as to the
Casualty Damage Value under Section 7.2, then either of Seller or Purchaser shall have the right to
invoke the procedures of this Section 13.14 by delivering written notice to the other party.
Seller and Purchaser each shall appoint an independent forestry consultant within five (5) days
following the delivery of such written notice, each of which may be a consultant previously engaged
by the appointing party, and such two consultants will in turn select a third independent forestry
consultant within five (5) days to act with them in a panel to determine the appropriate value. A
majority of the panel of consultants will reach a binding decision within fifteen (15) days of the
selection of the third consultant, and the decision of the panel of consultants will be final as to
(i) the Casualty Damage Value, and (ii) the designation of the prevailing and non-prevailing
parties. The non-prevailing party will bear the cost of all consultants.

     Section 13.15 Business Days. If any date set forth in this Agreement for the performance
of any obligation by any party hereto, or for the delivery of any instrument or notice as herein
provided, should be a day other than a Business Day, the compliance with such obligation or
delivery shall be deemed acceptable on the next Business Day.

     Section 13.16 Section 1031/1033 Exchange. Either Seller or Purchaser may consummate the
sale or purchase of the Timber, as applicable, as part of a so-called like kind exchange (an
"Exchange”) pursuant to, and to the extent permitted by, Section 1031 or Section 1033 of the Code,
provided that: (a) the Closing shall not be delayed or affected by reason of an Exchange nor shall
the consummation or accomplishment of an Exchange be a condition precedent or condition subsequent
to Purchaser’s or Seller’s obligations under this Agreement; (b) Seller or Purchaser, as
applicable, shall effect an Exchange through an assignment of its rights under this Agreement
(other than with respect to any reimbursement obligations, and any representations or warranties
made by the other party, which shall not be assigned and shall in all events be deemed to have been
made to the participating party only) to a qualified intermediary pursuant to an assignment
agreement in form reasonably satisfactory to the non-participating party; (c) to the extent Seller
participates in an Exchange, Purchaser shall not be required to acquire, take title to or obtain an
equitable interest in any real property other than the Timber; (d) to the extent Purchaser
participates in an Exchange, Seller shall not be required to acquire, take title to or obtain an
equitable interest in any real property; and (e) Seller’s or Purchaser’s assignment of its rights
hereunder, as applicable, to a qualified intermediary in connection with an Exchange shall not
limit or modify in any manner whatsoever any of the covenants, obligations, agreements,
representations or warranties of such participating party set forth in this Agreement, all of which
shall remain in full force and effect and shall constitute the primary liability of such
participating party in all events. Neither Purchaser nor Seller shall by this Agreement or
acquiescence to an Exchange by the other party (i) have such non-participating party’s rights,
obligations or liabilities under this Agreement modified, expanded or diminished in any manner, or
(ii) be responsible for compliance or be deemed to have warranted to the participating party that
the participating party’s Exchange in fact complies with Section 1031 or

18

 

Section 1033 of the Code. Any increased costs arising from an Exchange shall be borne by the
party participating in such Exchange.

[remainder of page intentionally left blank]

19

 

     IN WITNESS WHEREOF, this Agreement has been duly executed, sealed and delivered by the parties
hereto as of the Effective Date.

	 	 	 	 	 
	 	SELLER:

ST. JOE TIMBERLAND COMPANY OF 

DELAWARE, L.L.C., a Delaware limited liability 

company

 	 
	 	By:  	/s/ William Sonnenfeld
 	 
	 	 	Name:  	William Sonnenfeld 	 
	 	 	Its: SVP — Timberland & Rural Sales 	 

20

 

	 	 	 	 	 

(Purchaser’s Signature Page to Purchase and Sale Agreement)

	 	 	 	 	 
	 	PURCHASER:

VULCAN TIMBERLANDS LLC, a Delaware

limited liability company

 	 
	 	By:  	/s/ Phillip Woods
 	 
	 	 	Name:  	Phillip Woods 	 
	 	 	Its: Vice President & Secretary 	 

21

 

	 	 	 	 	 

Exhibit A

Timber Stands

     The Timber is located within (i) those certain cross-hatched timber stands in Calhoun County,
Florida, shown on Exhibit A-1 attached hereto and made a part hereof; and (ii) those certain
cross-hatched timber stands in Gulf County, Florida, shown on Exhibit A-2 attached hereto and made
a part hereof.

[remainder of page intentionally left blank]

Exhibit A

 

 

Exhibit A-1

Calhoun County Timber Stand Maps

[attached]

Exhibit A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: With respect to the map of the Timber Stands shown on the following page in Section 29, Township 2 South, Range 9 West, to the best of the knowledge
of the parties hereto, the portion of the Timber Stand shown as lying in the Southeast 1/4 of the Northeast 1/4 of said Section 29 is incorrectly shown as lying within Section
29 due to a mapping error, and that such portion of the timber actually lies in Section 28, Township 2 South, Range 9 West.

 

 

 

 

 

 

 

 

Note: With respect to the map of the Timber Stands shown on the following page in Section 32, Township 2 South, Range
10 West, to the best of the knowledge of the parties hereto, the portion of the Timber Stand shown as lying in the Southwest 1/4 of said Section 32 is incorrectly
shown as lying within Section 32 due to a mapping error, and that such portion of the timber actually lies in Section 5, Township 3 South, Range 10 West.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit A-2

Gulf County Timber Stand Maps

[attached]

Exhiibt A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: With respect to the map of the Timber Stands shown on the following page in Section 12, Township 5 South, Range 10 West, to the best of the knowledge of the parties hereto:

(i)the portion of the Timber Stand shown as lying in a narrow strip along the western boundary of the Southwest 1/4 of
the Northwest 1/4 and the Northwest 1/4 of the Southwest 1/4 of said Section 12 is incorrectly shown as lying within Section 12 due to a
mapping error, and that such portion of the timber actually lies in Section 11, Township 5 South, Range 10 West; and

(ii) the portion of the Timber Stand shown as lying in the South 1/2 of the Southwest 1/4 of said Section 12 is incorrectly shown as
lying within Section 12 due to a mapping error, and that such portion of the timber actually lies in Section 13, Township 5 South, Range 10 West.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

 

 

     

 

 

     

 

 

Exhibit B

Legal Description of the Property

     The Property consists of (i) that certain real property located in Calhoun County, Florida,
more particularly described on Exhibit B-1 attached hereto and made a part hereof; and (ii) that
certain real property located in Gulf County, Florida, more particularly described on Exhibit B-2
attached hereto and made a part hereof.

[remainder of page intentionally left blank]

Exhibit B

 

 

Exhibit B-1

Legal Description of the Property — Calhoun County

TOWNSHIP 2 SOUTH, RANGE 11 WEST, CALHOUN COUNTY, FLORIDA:

Section 1: All;

Section 2: All, less those portions deeded for road rights of way and less that portion conveyed
to Gulf Power Company in Deed Book G-2, Page 45 and Deed Book 74, Page 364;

Section 3: All, less those portions deeded for road rights of way and less that portion conveyed
to Gulf Power Company in Deed Book G-2, Page 45 and Deed Book 74, Page 364;

Section 4: All;

Section 9: All, less those portions deeded for road rights of way and less that portion conveyed
to Gulf Power Company in Deed Book G-2, Page 45 and Deed Book 74, Page 364;

Section 10: All, less those portions deeded for road rights of way and less and exception that
portion conveyed to Gulf Power Company in Deed Book G-2, Page 43 and Deed Book 74, Page 355, and
less the Southeast 1/4;

Section 11: The North 1/2; and the Southeast 1/4;

Section 12: All;

Section 13: The East 1/2; the Northwest 1/4 of the Northwest 1/4; the East 1/2 of the Northwest 1/4; the
Southwest 1/4 of the Southwest 1/4, less road right of way and less and except that portion conveyed to
the State of Florida in Deed Book D-2, Page 527;

Section 14: The North 1/2 of the Northeast 1/4; the Southwest 1/4 of the Northeast 1/4; the Southeast 1/4 of
the Northwest 1/4; the Northeast 1/4 of the Southwest 1/4; and the South 1/2 of the South 1/2;

Section 17: All, less those portions deeded for road rights of way and less that portion conveyed
to Gulf Power Company in Deed Book G-2, Page 45 and Deed Book 74, Page 364;

Section 20: All;

Section 21: All;

Section 22: All;

Section 23: All;

Exhibit B

 

 

Section 24: All;

Section 25: All;

Section 26: All;

Section 27: The East 1/2 of the Southeast 1/4;

Section 35: All; and

Section 36: All.

TOWNSHIP 3 SOUTH, RANGE 11 WEST, CALHOUN COUNTY, FLORIDA;

Section 1: All;

Section 2: All;

Section 11: All;

Section 12: All;

Section 13: All;

Section 14: All;

Section 23: All; and

Section 24: All.

TOWNSHIP 3 SOUTH, RANGE 10 WEST, CALHOUN COUNTY, FLORIDA:

Section 1: All, less the West 1/2 of the Northwest 1/4 and less that portion lying South and West of
Chipola River;

Section 3: The West 1/2 of the Southwest 1/4, the West 1/2 of the Southeast 1/4 lying South of State Road
No. 73; the West 565 feet of the South 1155 feet of the Southeast 1/4 of the Southwest 1/4, a portion
of the Northeast 1/4 of the Southwest 1/4 described as follows: Begin at the northeast corner of the
Northeast 1/4 of the Southwest 1/4 of Section 3, Township 3 South, Range 10 West, and run thence South
495 feet, run thence West 1320 feet, run thence North 495 feet, run thence East 1320 feet to the
point of beginning, and the Northwest 1/4 lying South and West of State Road No. 73 less and except a
parcel described as follows: Begin at the Southeast corner of said Northwest 1/4 of said Section 3,
and run thence North 420 feet, thence West 420 feet, thence South 420 feet, thence East 420 feet to
the point of beginning;

Exhibit B

 

 

Section 4: The Northeast 1/4, the East 1/2 of the Southeast 1/4, the Northwest
1/4 of the Southeast
1/4, the
East 1/2 of the Northwest
1/4, the East 1/2 of the West 1/2 of the Northwest 1/4, and the West
1/2 of the
Southwest 1/4;

Section 5: The Southwest
1/4 of the Northeast
1/4, the West 1/2 of the Northwest
1/4, the Southeast
1/4 of
the Northwest 1/4, and the South 1/2;

Section 6: All;

Section 7: All;

Section 8: All;

Section 9: The North
1/2, the Southwest 1/4, and the South 1/2 of the Southeast 1/4;

Section 10: The North 1/2 of the Northeast 1/4, the Northwest 1/4 of the Northwest
1/4, the South
1/2 of the
North 1/2, the Southwest
1/4 of the Southwest 1/4, the East 1/2 of the Southwest 1/4, and the Southeast 1/4
less and except that parcel containing approximately 3.6 acres described in OR Book 235, Page 248;

Section 11: The West 1/2 of the West 1/2 lying westerly of State Road 73;

Section 14: The West 1/2 of the West 1/2;

Section 15: All;

Section 16: All;

Section 17: All;

Section 18: All;

Section 19: All;

Section 20: All;

Section 21: All;

Section 22: The North
1/2, the Southwest 1/4 of the Southeast 1/4, the North 1/2 of the Southeast
1/4, the
West 1/2 of the Southwest 1/4, the Northeast 1/4 of the Southwest 1/4, and the North
1/2 of the
Southeast 1/4
of the Southwest 1/4;

Section 23: The West 1/2 of the Northwest 1/4, the Southwest 1/4 of the Southeast
1/4, the Southeast 1/4 of
the Southwest 1/4, and the West 1/2 of the Southwest 1/4.

Exhibit B

 

 

TOWNSHIP 1 NORTH, RANGE 9 WEST, CALHOUN COUNTY, FLORIDA:

Section 31: The East 1/2 of the Southeast 1/4; the Southwest 1/4 of the
Southeast 1/4; the Southeast 1/4 of
the Northeast 1/4; and that portion of the East 1/2 of the Southwest 1/4 lying South of State Road 20.;

Section 32: The West 1/2 of the Southwest 1/4 and the Southwest 1/4 of the Northwest 1/4 less and except
(i) any portion of the property conveyed to Calhoun County for right of way as recorded in Official
Record Book 285, Page 171, and (ii) Parcel 1 as described in Special Warranty Deed from St. Joe
Timberland Company of Delaware, L.L.C. to Kenneth B. Jones, dated July 19, 2004 and recorded in
Official Record Book 289, Page 366.

TOWNSHIP 1 SOUTH, RANGE 9 WEST, CALHOUN COUNTY, FLORIDA:

Section 6: All, less and except the Northwest 1/4 of the Northwest 1/4 of the Northwest 1/4 and less
that portion lying South of State Road 20 and East of Chipola River;

Section 7: All, less and except that portion north and east of the Chipola River;

Section 8: All that portion of the Northwest 1/4 and the South 1/2 lying west of the Chipola River;

Section 17: All lying West of Chipola River;

Section 18: All;

Section 19: All;

Section 20: The North 1/2 of the Northwest 1/4; and the remainder of the Section lying West of Chipola
River;

Section 29: All lying West of Chipola River;

Section 30: All;

Section 31: The East 1/2 of the Northeast 1/4;

Section 32: The Northwest 1/4 of the Northeast 1/4 lying South and West of the Chipola River, the
Southwest 1/4 of the Northeast 1/4, the Northwest 1/4, the East 1/2 of the Southwest 1/4, and the
 Southeast
1/4; and

Section 33: That portion of the Southwest 1/4 of the Southwest 1/4 lying South and West of Chipola
River.

Exhibit B

 

 

TOWNSHIP 2 SOUTH, RANGE 9 WEST, CALHOUN COUNTY, FLORIDA:

Section 4: The Southwest 1/4 of the Southwest 1/4 lying West of the Chipola River;

Section 5: All, less and except the Southeast 1/4 of the Southeast 1/4;

Section 6: All;

Section 7: All;

Section 8: All;

Section 9: All lying West of Chipola River;

Section 17: All;

Section 18: All;

Section 19: All, less and except that portion conveyed to the State of Florida, for the Use and
Benefit of the State Road Department of Florida in Deed Book 74, Page 289;

Section 20: All, less and except the Southwest 1/4 of the Southeast 1/4 of the Southwest 1/4 and less
and except that portion conveyed to the State of Florida, for the Use and Benefit of the State Road
Department of Florida in Deed Book 74, Page 289;

Section 21: All lying West of Chipola River, less and except the Southwest 1/4 of the Southwest 1/4
and less and except any portion within Lees Road Right of Way;

Section 28: All lying North and West of Chipola River, less and except right of way for State Road
71 and less and except any portion of the Southwest 1/4 of the Southeast 1/4 lying West of Chipola
River as conveyed in Official Record Book 246, Page 64 and less and except that portion conveyed to
the State of Florida, for the Use and Benefit of the State Road Department of Florida in Deed Book
74, Page 289;

Section 29: The South 1/2 of the South 1/2; and that part of the Northeast 1/4 of the Southeast 1/4 lying
South and East of State Road 71, less and except that portion deeded in Official Record Book 321,
Page 283; and the East 1/2 of the Northeast 1/4 of the Northeast 1/4 less and except that portion
conveyed to the State of Florida, for the Use and Benefit of the State Road Department of Florida
in Deed Book 74, Page 289;

Section 30: All, less and except that portion conveyed to the State of Florida, for the Use and
Benefit of the State Road Department of Florida in Deed Book 74, Page 289;

Section 31: All, less right of way of State Route 71 and less that certain parcel containing 32.50
acres conveyed in Official Record Book 264, Page 160;

Exhibit B

 

 

Section 32: All lying North and West of Chipola River less and except that portion, if any, deeded
in Official Record Book 321, Page 283, and less right of way of State Route 71; and

Section 33: The North 1/2 of the Northwest 1/4 lying North and West of River; the Northwest 1/4 of the
Northeast 1/4 lying North and West of River, less and except that portion deeded in Official Record
Book 321, Page 283.

TOWNSHIP 3 SOUTH, RANGE 9 WEST, CALHOUN COUNTY, FLORIDA:

Section 5: All lying West of Chipola River;

Section 6: All;

Section 7: That portion of the North 1/2 lying North of Chipola River; and

Section 8: That portion located in the Northwest 1/4 of the Northwest 1/4 lying North of Chipola
River.

TOWNSHIP 1 SOUTH, RANGE 10 WEST, CALHOUN COUNTY, FLORIDA:

Section 1: All lying East of State Road 73, less the Southeast 1/4 of the Southwest 1/4; less and
except that portion deeded in Official Record Book 265, Page 62; less and except one (1) acre
square lying in the Northwest corner of the Northeast 1/4 of the Northeast 1/4; and less and except
that portion deeded to Clarksville Baptist Church in Official Record Book 249, Page 371;

Section 11:

Exhibit B

 

 

Begin at a Terra Cotta monument marking the Southeast corner of Section 11, Township 1 South, Range 10 West,
Calhoun County, Florida and thence run North 88 degrees 08 minutes 41 seconds West, along the South boundary
of said Section 11, 2687.19 feet to an iron rod, thence run North 03 degrees 25 minutes 02 seconds East 22.53
feet to an iron rod, thence run North 87 degrees 47 minutes 50 seconds West 320.50 feet to a concrete monument
on the Easterly Right-Of-Way of State road 73, thence run North 23 degrees 55 minutes 07 seconds East, along
said Easterly Right-Of-Way, 1395.79 feet to a concrete monument, thence departing said Easterly Right-Of-Way
run South 87 degrees 24 minutes 58 seconds East 583.58 feet to a concrete monument, thence run North 89 degrees
28 minutes 27 seconds East 524.92 feet to a concrete monument marking the Southwest corner of the Northeast 1/4 of
the Southeast 1/4 of said Section 11, thence run North 04 degrees 39 minutes 06 seconds East 884.09 feet to a
concrete monument, thence run South 88 degrees 25 minutes 11 seconds East 1290.36 feet to a concrete monument on
the East boundary of said Section 11, thence run South 00 degrees 47 minutes 25 seconds West, along said East
boundary, 2222.04 feet to the Point of Beginning. Containing 109.95 acres, more or less.

Section 12:

All, less and except the West 3/4 of the Northwest 1/4 of the Northeast 1/4, less the Northeast 1/4 of the
Northwest 1/4, and less the Northwest 1/4 of the Northwest 1/4 thereof;

Section 13: All;

Section 24: All;

Section 25: All; and

Section 26:

Exhibit B

 

 

Begin at a concrete monument marking the Northeast corner of Section 26, Township 1 South, Range 10 West,
Calhoun County, Florida and run South 00 degrees 59 minutes 45 seconds West, along the East boundary line
of said Section 26, 5334.14 feet to a concrete monument marking the Southeast corner of said Section 26,
thence run North 87 degrees 42 minutes 42 seconds West, along the South boundary line of said Section 26,
3166.05 feet to a concrete monument at the intersection of said South boundary line with the Easterly right
of way line of State Road 73, thence departing said South boundary line run North 08 degrees 56 minutes 52
seconds West, along said Easterly right of way line, 1238.58 feet to a concrete monument, thence departing
said Easterly right of way line run South 87 degrees 42 minutes 42 seconds East 1494.12 feet to an iron rod,
thence run North 75 degrees 20 minutes 46 seconds East 169.97 feet to an iron rod, thence run North 83
degrees 39 minutes 48 seconds East 301.78 feet to an rod, thence run North 76 degrees 20 minutes 51 seconds
East 571.49 feet to an iron rod, thence run North 66 degrees 00 minutes 51 seconds East 122.65 feet to an
iron rod, thence run North 07 degrees 45 minutes 40 seconds East 231.59 feet to an iron rod, thence run North
02 degrees 33 minutes 15 seconds East 535.67 feet to an iron rod, thence North 03 degrees 00 minutes 06
seconds West 344.91 feet to an iron rod, thence run North 06 degrees 46 minutes 14 seconds West 413.23 feet
to an iron rod, thence run North 16 degrees 37 minutes 20 seconds West 233.67 feet to an iron rod, thence run
North 22 degrees 39 minutes West 414.41 feet to an iron rod, thence run North 31 degrees 26 minutes 52 seconds
West 307.44 feet to an iron rod, thence North 00 degrees 00 minutes 10 seconds West 1447.98 feet to a concrete
monument on the North boundary line of the Northeast 1/4 of said Section 26, thence run South 87 degrees 29
minutes 53 seconds East, along said North boundary line, 1224.0 feet to the POINT OF BEGINNING. Containing
185.02 acres, more or less.

Exhibit B

 

 

Exhibit B-2

Legal Description of the Property — Gulf County

TOWNSHIP 3 SOUTH, RANGE 10 WEST, GULF COUNTY, FLORIDA:

Section 26: The Northwest 1/4 of the Northeast 1/4; the South 1/2 of the Northeast 1/4 lying West of State
Route 71; the Southeast 1/4 lying West of State Route 71; the North 1/2 of the Northwest 1/4; the
Southeast 1/4 of the Northwest 1/4; and the Southwest 1/4 less 6 acres in the Northwest corner of the
Northeast 1/4 of the Southwest 1/4 of Section 26;

Section 27: All, less the North 1/2 of the Northeast 1/4 of the Northeast 1/4 and less one (1) acre
deeded to Gulf County in Official Record Book 24, Page 941;

Section 28: All;

Section 29: All;

Section 30: All;

Section 31: All;

Section 32: The North 1/2;

Section 33: The East 1/2 and the Northwest 1/4;

Section 34: All;

Section 35: The West 1/2 and the Southwest 1/4 of the Southeast 1/4.

TOWNSHIP 4 SOUTH, RANGE 10 WEST, GULF COUNTY, FLORIDA:

Section 6: All;

Section 7: All, less and except the right of way of State Road 22;

Section 8: The Southwest 1/4 of the Northwest 1/4; the West 1/2 of the Southwest 1/4 less and except 10
acres described as follows: Begin at the Southwest corner of Section 8, Township 4, Range 10 West,
and run North 660 feet, thence East 660 feet, thence South 660 Feet, thence West 660 feet to the
point of beginning;

Section 16: The Northwest 1/4 lying South of State Road 22; the Southwest 1/4; the West 1/2 of the
Southeast 1/4 and the Southeast 1/4 of the Southeast 1/4;

Section 17: The South 1/2, and the East 1/2 of the Northeast 1/4 lying South of State Road 22;

Exhibit B

 

 

Section 18: All, less and except the right of way of State Road 22;

Section 27: That portion of the West 1/4 lying westerly of the center of a drainage ditch and
southerly of the center of a woods road as shown on the specific purpose survey prepared by
Buchanan & Harper, Inc., dated December 6, 1989, a copy of which is attached hereto as Attachment
1;

Section 28: All, less and except that portion of the North 1/4 lying Northerly of the center of a
woods road and less and except that portion of the East 1/2 lying Easterly of the center of drainage
ditch as shown on the specific purpose survey prepared by Buchanan & Harper, Inc., dated December
6, 1989, a copy of which is attached hereto as Attachment 1;

Section 29: All, less and except that portion of the North 1/4 lying Northerly of the center of a
woods road as shown on the specific purpose survey prepared by Buchanan & Harper, Inc., dated
December 6, 1989, a copy of which is attached hereto as Attachment 1;

Section 30: All, less and except that portion of the North 1/4 lying northerly of the center of a
woods road as shown on the specific purpose survey prepared by Buchanan & Harper, Inc., dated
December 6, 1989, a copy of which is attached hereto as Attachment 1;

Section 31: All;

Section 32: All;

Section 33: All, less and except that portion of the East 1/4 lying Easterly and Northerly of the
center of a ditch as shown on the specific purpose survey prepared by Buchanan & Harper, Inc.,
dated December 6, 1989, a copy of which is attached hereto as Attachment 1; and

Section 34: That portion of the South 1/2 lying Southerly of the center of a drainage ditch and the
Easterly extension thereof, said center and the extension thereof bearing North 84 degrees 53
minutes 09 seconds East as shown on the specific purpose survey prepared by Buchanan & Harper,
Inc., dated December 6, 1989, a copy of which is attached hereto as Attachment 1.

TOWNSHIP 5 SOUTH, RANGE 10 WEST, GULF COUNTY, FLORIDA:

Section 1: The South 1/2 of the Southwest 1/4;

Section 2: The South 1/2 of the Southeast 1/4; the East 1/2 of the Southwest 1/4, and the
Southwest 1/4 of
the Southwest 1/4;

Section 3: All, less and except the right of way of County Road Number 386;

Section 4: All, less and except the right of way of County Road Number 386;

Exhibit B

 

 

Section 5: All, less and except that portion of the Southeast 1/4 lying South of the center of a
drainage ditch as shown on the specific purpose survey prepared by Buchanan & Harper, Inc., dated
December 6, 1989, a copy of which is attached hereto as Attachment 1;

Section 6: All;

Section 7: All lying north of Little Creek.

Section 8: That portion of Section 8 lying Northwesterly of the center of a drainage ditch (Little
Creek) as shown on the specific purpose survey prepared by Buchanan & Harper, Inc., dated December
6, 1989; that portion of the Northeast 1/4 lying Easterly of the center of a drainage ditch as shown
on the specific purpose survey prepared by Buchanan & Harper, Inc., dated December 6, 1989, a copy
of which is attached hereto as Attachment 1; and that portion of Section 8 lying south of State
Road 386;

Section 9: All, less and except the right of way of County Road Number 386 and less and except
that portion of the Southwest 1/4 of the Northwest 1/4 lying North of the right of Way of County Road
Number 386 and West of the center of a drainage ditch as shown on the specific purpose survey
prepared by Buchanan & Harper, Inc., dated December 6, 1989, a copy of which is attached hereto as
Attachment 1;

Section 10: All;

Section 11: All;

Section 12: The West 1/2, less and except that portion deeded to the Gulf County Board of County
Commissioners as described in Book 487, Page 830;

Section 13: The West 1/2 and the West 1/2 of the East 1/2;

Section 14: All;

Section 15: All;

Section 16: All;

Section 17: All, less and except all that part of Section 17 lying North of the centerline of State
Road 386, as the same now runs, and less and except that portion of the West 1/2 of the West 1/2 of
Section 17 conveyed to RGK Investments, Inc. and Kerrigan Family Limited Partnership by Special
Warranty Deed dated September 11, 2003 and recorded in Official Records Book 317, Page 918;

Section 20: All, less and except that portion of the West 1/2 of the West 1/2 of Section 20 conveyed
to RGK Investments, Inc. and Kerrigan Family Limited Partnership by Special Warranty Deed dated
September 11, 2003 and recorded in Official Records Book 317, Page 918;

Exhibit B

 

 

Section 21: All;

Section 22: All;

Section 23: All;

Section 24: All;

Section 25: All;

Section 26: All;

Section 27: All;

Section 28: All;

Section 29: All, less and except that portion of the West 1/2 of the West 1/2 of Section 29 conveyed
to RGK Investments, Inc. and Kerrigan Family Limited Partnership by Special Warranty Deed dated
September 11, 2003 and recorded in Official Records Book 317, Page 918;

Section 31: All;

Section 32: All;

Section 33: All;

Section 34: All;

Section 35: All; and,

Section 36: All.

TOWNSHIP 4 SOUTH, RANGE 11 WEST, GULF COUNTY, FLORIDA:

Section 1: All;

Section 2: That portion lying East of Wetappo Creek and East of an unnamed branch, which branch
lies in the West 1/2 of the Northwest 1/4 running north to south and flowing into Wetappo Creek;

Section 11: That portion of the North 1/2 lying North and East of Wetappo Creek; and that portion of
the Southeast 1/4 of the Southeast 1/4 lying east of Jarrott Daniels Road;

Section 12: The Northeast 1/4; the West 1/2 of the West 1/2, less and except that portion lying

Exhibit B

 

 

West of Wetappo Creek and North of State Route 22; the Southeast 1/4 of the Southwest 1/4; the East 1/2
of the Southeast 1/4; the Southwest 1/4 of the Southeast 1/2, less and except the right of way for State
Road 22 deeded to Gulf County, Florida at Book 62, Page 362, and less .75 acres for State Road 22
right of way deeded to Gulf County, Florida at Book 471, Page 512; and

Section 13: All, less and except 241.745 acres to Wetappo Farms as described in Book 279, Page
188, less and except the right of way for State Road 22 deeded to Gulf County, Florida at Book 471,
Page 512, and less and except the property conveyed to Mallory Williams by deed recorded in Book
484, Page 692;

Section 14: That portion lying East of Jarrott Daniels Road;

Section 24: All lying East of Jarrott Daniels Road, less and except that portion of the North 1/2 of
Section 24 lying both (i) North and East of Wetappo Creek and (ii) North and West of Sandy Branch;

Section 25: All lying East of Wetappo Creek; and

Section 36: All lying East of Wetappo Creek.

TOWNSHIP 5 SOUTH, RANGE 11 WEST, GULF COUNTY, FLORIDA:

Section 1: All lying East of Wetappo Creek, less and except that portion, if any, deeded in
Official Record Book 83, Page 645;

Section 12: All lying East of Wetappo Creek and North of Little Creek, less and except the
Southeast 1/4 of the Southwest 1/4 and the Southwest 1/4 of the Southeast 1/4, and less and except the west
1/2 of the Southeast 1/4 of the Southeast 1/4;

Section 35: The East 1/2; and

Section 36: All.

TOWNSHIP 6 SOUTH, RANGE 9 WEST, GULF COUNTY, FLORIDA:

Section 5: All lying West of State Road 71;

Section 6: All;

Section 7: All;

Section 8: All lying West of State Road 71;

Section 18: All lying West of State Road 71; and

Exhibit B

 

 

Section 19: All lying West of State Road 71.

TOWNSHIP 6 SOUTH RANGE 11 WEST, GULF COUNTY, FLORIDA:

Section 1: All, less and except any right of way of State Road 386;

Section 2: All, less and except any portion lying North of State Road 386;

Section 3: All, less and except that portion lying North of State Road 386;

Section 4: All, less and except the North 1/2 of the Northeast 1/4 and less that portion lying west of
the Florida Power Corporation easement recorded in Official Records Book 15, Page 97;

Section 5: All of the Southeast 1/4 lying East of the Florida Power Corporation easement recorded in
Official Records Book 15, Page 97;

Section 8: All lying East of the Florida Power Corporation easement recorded in Official Records
Book 15, Page 97;

Section 9: All;

Section 10: All, less and except 1.66 acres for Gas Line Easement recorded in Official Records Book
9, Page 238;

Section 11: All, less and except property conveyed for Gas Line Easement recorded in Official
Records Book 9, Page 238;

Section 12: All;

Section 13: All;

Section 14: All, less and except the West 1/2 of the Southwest 1/4;

Section 15: All lying North of the Intracoastal Waterway canal;

Section 16: All lying North of the Intracoastal Waterway canal;

Section 17: All lying North of the Intracoastal Waterway canal and East of Florida Power
Corporation Easement recorded in Official Records Book 15, Page 97.

Section 23: All lying North and East of the Intracoastal Waterway canal;

Section 24: All lying North and East of the Intracoastal Waterway canal;

Section 25: All lying North and East of the Intracoastal Waterway canal; and

Exhibit B

 

 

Section 36: All lying North and East of the Intracoastal Waterway canal.

TOWNSHIP 7 SOUTH, RANGE 10 WEST, GULF COUNTY, FLORIDA:

Section 2: All lying west of State Road 71;

Section 3: All;

Section 4: All;

Section 5: All lying North of the Intracoastal Waterway canal;

Section 6: All lying North of the Intracoastal Waterway canal;

Section 8: All lying North of the Intracoastal Waterway canal;

Section 9: All lying North of the Intracoastal Waterway canal;

Section 10: All lying North of the Intracoastal Waterway canal, less and except the Southeast 1/4 of
the Southeast 1/4 and less that portion deeded to Gulf County recorded in Official Records Book 88,
Page 1019;

Section 11: All the Northwest 1/4 lying West of State Road 71, formerly State Road No. 6 and North
of Beaty Avenue, as shown by plat of Beaty Subdivision of White City in Gulf County, Florida,
recorded in Plat Book 1, Page 23, in office of the Clerk of Circuit Court of Gulf County, less and
except a rectangular tract in the Southwest corner thereof with a frontage of 600 feet on the West
side of State Road 71, formerly State Road No. 6, and 1,020 feet on the North side of the
hereinbefore mentioned Beaty Avenue.

TOWNSHIP 6 SOUTH, RANGE 10 WEST, GULF COUNTY, FLORIDA:

Section 1: All;

Section 2: All;

Section 3: All;

Section 4: All;

Section 5: All;

Section 6: All;

Section 7: All;

Exhibit B

 

 

Section 8: All;

Section 9: All;

Section 10: All;

Section 11: All;

Section 12: All;

Section 13: All;

Section 14: All;

Section 15: All;

Section 16: All;

Section 17: All;

Section 18: All;

Section 19: All;

Section 20: All;

Section 21: All;

Section 22: All;

Section 23: All;

Section 24: All;

Section 25: All lying West of State Road 71, less and except that portion lying within Section 25
described in deed recorded in Official Records Book 475, Page 641;

Section 26: All;

Section 27: All;

Section 28: All;

Section 29: All;

Section 30: All;

Exhibit B

 

 

Section 31: All lying North of Intracoastal Waterway canal;

Section 32: All;

Section 33: All;

Section 34: All;

Section 35: All lying West of County Road 71; and

Section 36: All lying West of County Road 71.

Exhibit B

 

 

Attachment 1

[attached]

Exhibit B

 

 

 

 

Exhibit C

Form of Timber Deed

[attached]

Exhibit C

 

 

This instrument prepared by:

Victor P. Haley

Sutherland Asbill & Brennan LLP

999 Peachtree St NE

Atlanta, GA 30309-3996

After recording return to:

First American Title Insurance Company

National Commercial Services

Six Concourse Parkway

Suite 2000

Atlanta, Georgia 30328

Attention: Vicky Griffin

TIMBER DEED

     THIS TIMBER DEED (the “Timber Deed”) is made this       day of                     , 2011 (the
“Effective Date”), between ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C., a Delaware limited
liability company (together with its successors and assigns, “Grantor”) with an address of 133
South WaterSound Parkway, WaterSound, Florida 32413, Attention: Legal Department, and VULCAN
TIMBERLANDS LLC, a Delaware limited liability company (together with its successors and assigns,
“Grantee”), with an address of Attn: Resource Management Service, LLC, its Manager, 31 Inverness
Center Parkway, Suite 360, Birmingham, Alabama 35242.

W I T N E S S E T H:

     That Grantor, for and in consideration of $10.00 and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, does hereby grant, bargain, sell,
alien, remise, release, convey and confirm unto Grantee all its rights, title and interest in and
to all the timber, including straw produced therefrom, growing, lying or standing, as of the
Effective Date, on that certain real property located in                      County, Florida,
identified on the timber stand maps shown on Exhibit A attached hereto and made a part hereof
(each, a “Timber Stand,” and all such timber, including straw produced therefrom, in such Timber
Stands being, collectively, the “Timber”), subject to the terms, covenants, conditions and
agreements set forth in this Timber Deed.

     Exhibit B attached hereto and made a part hereof contains the legal description of certain
parcels of real property containing the Timber and certain existing roads with respect to which
Grantee has certain easement rights, as more particularly described herein (such real property,
exclusive of the Timber, the “Property”).

     This Timber Deed is made and accepted subject to the following terms, covenants, conditions
and agreements:

Exhibit C

 

 

     1. Rights to Maintain and Harvest the Timber. Grantor hereby grants to Grantee the right to
maintain, manage, store, cut, harvest and remove the Timber from the Property subject to the
provisions of this Timber Deed (collectively, the “Timber Rights”) until the earlier to occur of
(i) the date that is twenty (20) years after the Effective Date, and (ii) the date upon which all
of the Property has been released from this Timber Deed in accordance with the terms of this Timber
Deed (such earlier date being the “Termination Date”), after which time said Timber Rights shall
permanently expire. Any part of the Timber not severed and removed by Grantee from the Property
before the Termination Date shall be deemed abandoned by Grantee and shall become the property of
Grantor, and Grantee shall have no further rights with regard to the Timber.

     2. Grantor’s Reserved Rights. Grantor hereby reserves, for the benefit of Grantor and its
successors and assigns (including all lessees and licensees of Grantor), all rights in and to the
Property not expressly granted to Grantee in this Timber Deed, provided that Grantor’s exercise of
its retained rights shall not unreasonably interfere with the Timber Rights. Grantor’s reserved
rights shall include, without limitation, (a) the right to use or lease the Property for hunting or
other recreational purposes, (b) the right to access the Property, (c) the right to use and develop
Grantor’s adjacent property and the portions of the Property that do not contain the Timber, (d)
the right to use the existing roads on the Property, and (e) the right to grant easements and to
develop and extract oil, gas and other minerals in, on and under the Property in accordance with
Section 9. Any actions or uses of the Property by Grantor and its successors and assigns
(including all lessees and licensees of Grantor) that would be reasonably foreseeable to result in
damage or destruction of the Timber and/or the existing roads on the Property are not reserved
rights of Grantor.

     3. Partial Releases. Any portion of the Property shall be released from the Timber Rights
upon the earliest to occur of the following events with respect to such portion of the Property
(each such portion being “Released Property”), and the Timber Rights shall expire with respect to
such Released Property: (a) such portion of the Property contains a Timber Stand that has reached
thirty-six (36) years of age, which age is determined by (i) the ages of each Timber Stand as of
the Effective Date, as set forth on Exhibit C attached hereto and made a part hereof, and (ii)
increasing such ages by one (1) year on each January 1 following the Effective Date; (b) thirty
(30) months following the delivery by Grantee to Grantor of a notice of commencement of final
harvest operations on such portion of the Property pursuant to Section 8; and (c) the completion of
harvesting of Timber from such portion of the Property, such that immediately after such harvest
operation the average residual basal area of standing trees six inches (6”) diameter at breast
height (“dbh”) and greater is less than forty (40) square feet per acre for said harvested portion
of the Property, provided that Grantee shall have up to sixty (60) days following the completion of
such harvesting to remove its equipment from the harvested Timber Stands, even if such sixty (60)
day period extends beyond the Termination Date, but provided further that in no case shall the
presence of Grantee’s equipment and removal of same unreasonably interfere with Grantor’s
activities on the Released Property, including site preparation and replanting. Not later than
sixty (60) days following the date upon which such portion of the Property becomes Released
Property pursuant to this Section 3, Grantee shall execute and deliver to Grantor a release of such
Released Property in the form of Exhibit D
attached hereto and made a part hereof (and such other instruments as may be reasonably

Exhibit C

 

 

requested by Grantor to evidence such release), such release reserving, however, access over
existing roads located on such Released Property that are reasonably necessary to access and
harvest the remaining Timber, all in accordance with the terms and conditions of this Timber Deed
(provided that the provisions of such form of release reserving access shall be deleted where not
applicable). In addition, upon the reasonable request of Grantor, subject to the consent of
Grantee, not to be unreasonably withheld, conditioned or delayed, Grantee agrees to execute and
deliver to Grantor a release in the form of Exhibit D (provided that the provisions of such form of
release reserving access shall be deleted), and such other instruments as may be reasonably
requested by Grantor to evidence such release, with respect to portions of the Property that do not
contain Timber and that are no longer reasonably necessary to access or harvest the remaining
Timber, which portions of the Property shall become Released Property upon delivery of such
release.

     4. Risk of Loss; Casualty. All risk of loss to the Timber shall pass from Grantor to Grantee
concurrently with the execution and delivery of this Timber Deed. Following a casualty that causes
the average residual basal area of standing trees six inches (6”) dbh and greater to be less than
thirty (30) square feet per acre for any portion of the Property (the “Casualty Property”), Grantee
shall have the right to salvage or otherwise remove the Timber from such Casualty Property if
Grantee provides Grantor with written notice, within thirty (30) days following the occurrence of
such casualty, of Grantee’s intent to salvage or otherwise remove the Timber. If Grantee has
timely delivered such notice of intent, (a) Grantee shall have twelve (12) months following the
occurrence of such casualty to salvage or otherwise remove the Timber from such Casualty Property,
provided that if Grantee’s salvage operations are delayed by inclement weather, Grantee shall have
the right, by delivering written notice to Grantor, to extend such deadline by a period of time
equivalent to the length of such delay, not to exceed six (6) months; and (b) upon the expiration
of such twelve (12) month period (as may be extended pursuant to clause (a)), the Timber Rights
shall terminate with respect to such Casualty Property, and such Casualty Property shall be
released from the Timber Rights and shall become Released Property. If Grantee has not timely
delivered such notice of intent to Grantor, then upon the expiration of such thirty (30) day
period, the Timber Rights shall terminate with respect to such Casualty Property, and such Casualty
Property shall be released from the Timber Rights and shall become Released Property. Not later
than the expiration of either such thirty (30) day notice period or twelve (12) month salvage
period (as may be extended pursuant to clause (a)), as applicable, Grantee shall execute and
deliver to Grantor a release of such Casualty Property in the form of Exhibit D (and such other
instruments as may be reasonably requested by Grantor to evidence such release), such release
reserving, however, access over existing roads located on such Casualty Property that are
reasonably necessary to access and harvest the remaining Timber, all in accordance with the terms
and conditions of this Timber Deed (provided that the provisions of such form of release reserving
access shall be deleted where not applicable).

     5. Access Rights; Roads; Gates.

          (a) Grantor hereby grants to Grantee the rights of ingress and egress to and from the Property
over roads now existing and as may be constructed on the Property by
Grantor, but only for the purpose of exercising the Timber Rights and the removal of Grantee’s
equipment following the completion of harvesting activities. No right whatsoever vests in

Exhibit C

 

 

Grantee with respect to, and Grantee is prohibited from, creating or constructing permanent new roads on
the Property; provided, however, Grantee shall have the right, at its sole cost, to construct and
maintain temporary roads and trails on the Timber Stands in connection with the exercise of any of
its Timber Rights, but only to the extent that such temporary roads can be successfully replanted.
Grantee shall only install ditches or culverts adjacent to any such temporary roads or trails with
the prior written consent of Grantor, which consent shall not be unreasonably withheld, conditioned
or delayed. Grantee shall comply with all laws and regulations applicable to the installation, use
and maintenance of such culverts or ditches, including the requirements of the Northwest Florida
Water Management District.

          (b) Grantor and its lessees and licensees, in addition to their right to use the existing
roads on the Property, shall have the right to use all such temporary roads and trails constructed
by Grantee.

          (c) Grantee’s use of the Property shall be at Grantee’s own risk. Grantor shall not be liable
for any latent defect in any roadway or other condition existing on the Property or on any of
Grantor’s other property to which Grantor permits Grantee access (the “Access Property”), nor shall
Grantor be liable for any damages or injuries sustained by Grantee, Grantee’s agents, employees,
contractors, assigns or any other individual or entity acting by, for or under Grantee hereunder,
arising out of or resulting from the use of said roadways or of the Property or the Access
Property, except damages or injury due to the gross negligence or willful misconduct of Grantor,
Grantor’s agents, employees, contractors, assigns or any other individual or entity acting by, for
or under Grantor.

          (d) Grantor currently maintains locked gates on access points, and hereby retains the right to
install additional locked gates at such access points as it chooses, to limit trespass and protect
the Property from abuse, provided that Grantor shall provide Grantee with keys or combinations, as
applicable, to such locked gates. So long as Grantor provides Grantee with keys or combinations,
as applicable, to such locked gates, Grantee shall lock such gates overnight during Grantee’s
operations on the Property.

          (e) Grantee shall repair all fences, gates or structures damaged by its operations and shall
maintain and leave all roads, ditches, culverts, bridges and other infrastructure on the Property
(or on the Access Property) used or affected by it to substantially the same condition as
pre-existed Grantee’s operational use, less and except any use and damage arising from any party
other than Grantee or its agents, employees, contractors or assigns. Grantee shall secure gates
and entrance roads at the completion of harvest operations on the Property. Grantee shall be
liable to Grantor for all damage to the Property, the Access Property or any other property of
Grantor arising from Grantee’s failure to comply with this Section 5.

     6. Grantee’s Operations.

          (a) Grantee shall conduct no activity on the Property other than those activities necessary to
exercise its Timber Rights. In connection with Grantee’s management of
the Timber, there shall be no construction or placing of permanent buildings, mobile homes,
radio, cell, or other communication towers, advertising signs, billboards, or other advertising
material on the Property, nor shall there be any construction or placing of docks, bridges, piers
or

Exhibit C

 

 

other structures, except those temporary bridges, culverts or other structures necessary for
Grantee to exercise its Timber Rights. The maintenance and replacement of existing structures may
occur only if it is necessary for Grantee to exercise its Timber Rights.

          (b) Grantee shall conduct all activity on the Property permitted hereunder (i) in accordance
with the then-current Silviculture Best Management Practices (“BMPs”) for harvesting timber,
fertilization and other silvicultural prescriptions and activities, as promulgated or amended by
the Florida Department of Agriculture and Consumer Services from time to time, including mandatory
adherence to recommended streamside management zone (SMZ) guidelines near all creeks, streams,
rivers, seepage streams and steephead ravine systems; and (ii) in a manner that meets the minimum
requirements for compliance with the standards of the Sustainable Forestry Initiative, 2010-2014,
of the American Forest and Paper Association or such other management guidelines as Grantor and
Grantee may approve in writing from time to time (the “SFI Standards”).

          (c) No right whatsoever vests in Grantee with respect to, and Grantee is prohibited from,
planting or replanting any trees, shrubs, grasses or other vegetation on the Property, except where
expressly agreed to in writing by Grantor. There shall be no intentional planting, introduction,
release, or broadcast on the Property of any non-native, invasive plant species. The foregoing
prohibitions in this Section 6(c) shall not apply to any natural regeneration occurring on the
Property, and Grantee shall have no responsibility, liability or obligation whatsoever with respect
to any such natural regeneration.

          (d) No right whatsoever vests in Grantee with respect to, and Grantee is prohibited from, any
use of chemicals or mechanical site preparation for operations, except as expressly agreed in
writing by Grantor and as required under BMPs or SFI Standards (as defined below). Grantee is,
however, authorized to use fertilizers or herbicides as approved by Grantor in writing, which
approval shall not be unreasonably withheld. Within thirty (30) days following any such
application of fertilizer or herbicide, Grantee shall deliver written certification to Grantor of
the amount, method, location and date of application of such fertilizer or herbicide, together with
reasonable supporting documentation.

          (e) Except as expressly permitted in this Timber Deed or as reasonably necessary for Grantee
to exercise any of its Timber Rights, Grantee shall not fill, excavate, dredge, mine, or drill;
remove topsoil, sand, gravel, rock, peat, minerals, or other materials; dump ashes, trash, garbage,
machinery filters or components; or change the topography of the land in any material and adverse
manner other than what is reasonable and customary as part of commercial timber management and
harvest operations.

          (f) Except for products, including fuel and oil used in commercially reasonable quantities for
operating and maintaining equipment necessary to conduct harvesting operations and silvicultural
activities, Grantee shall not, without Grantor’s prior written consent given or withheld in its
sole discretion, generate, handle, manufacture, treat, store or use any
hazardous or toxic substances (as defined by applicable federal or state laws and
regulations), during its operations or activities on the Property or on the Access Property. All
of Grantee’s operations or activities hereunder shall be in all respects in compliance with all
applicable laws then governing hazardous or toxic substances. Any spills of oil, hydraulic fluids,
other

Exhibit C

 

 

petroleum products, or other hazardous materials caused by Grantee or its agents, employees,
contractors or assigns, shall be cleaned up and remediated by Grantee in accordance with applicable
laws, and Grantee shall notify Grantor in writing of such remediation.

          (g) Grantee shall not dredge, ditch, construct or drain ponds or dikes, or manipulate natural
water courses or other water bodies on the Property or on the Access Property except as necessary
to comply with BMPs or to maintain access on established roads or to establish new roads or trails
in accordance with Section 5.

          (h) Grantee shall exercise the Timber Rights in a commercially reasonable manner, using
generally accepted silvicultural and harvesting procedures and practices to protect and preserve in
a commercially reasonable manner the Property, the Access Property and any other adjoining timber
and property of Grantor.

          (i) Trees shall be cut as low as commercially practical to the ground.

          (j) Grantee shall have the right to split any existing Timber Stand containing more than fifty
(50) acres into multiple timber stands for harvesting purposes, provided that each subdivided
portion of such split Timber Stand shall contain not less than twenty-five (25) acres. Grantee
shall have no right to split into smaller timber stands for harvesting purposes any existing Timber
Stand that does not contain more than fifty (50) acres, unless Grantee is splitting a Timber Stand
to comply with SFI Standards for clear cut size with green-up requirements.

          (k) Grantee shall not, under any circumstances, bury any material whatsoever underground.

          (l) Grantee shall leave all fire breaks, property lines, running streams and drainage ditches
clear of logs, timber, limbs and debris resulting from Grantee’s operations. All oil drums, cans,
bottles, cartons, limbing bars, abandoned equipment and other trash and debris brought by Grantee
or its agents, employees or contractors onto the Property or on the Access Property shall be
removed at Grantee’s expense upon completion of each period of Grantee’s harvesting operations. If
Grantee does not remove and clear such debris promptly within forty-five (45) days after notice to
Grantee, Grantor may undertake such removal for Grantee’s account and Grantee shall be responsible
for the payment for any reasonable expenses actually incurred by Grantor in repairing or removing
same within thirty (30) days of Grantee’s receipt of a detailed invoice (and relevant
documentation).

          (m) Grantee acknowledges that a higher degree of care is required when the Property or the
Access Property is abnormally wet and the soils are saturated and unable to support adequately the
weight and operation of Grantee’s equipment. Grantee acknowledges that such conditions may require
Grantee to stop or temporarily interrupt its operations hereunder. In such event, Grantor will
notify Grantee of such abnormally wet conditions and the
parties will mutually develop a plan to address how soil conditions will be maintained, how
rutting will be limited, and under what wet-weather conditions harvesting or hauling would not
occur or would cease if weather conditions change during harvesting.

Exhibit C

 

 

          (n) Grantee shall exercise due care and not intentionally start any fire on the Property or
the Access Property other than controlled burns on the Property administered by burners certified
by the Florida Department of Agriculture & Consumer Services, Division of Forestry, provided that
Grantee shall deliver to Grantor ten (10) days prior written notice of any such controlled burn.
Any such controlled burns shall comply with all applicable laws and regulations, including
regulations governing the management of smoke. Grantee shall be liable to Grantor for all damage
to the Property, the Access Property or any other property of Grantor arising from Grantee’s
failure to comply with this Section 6(n). Grantee shall use all reasonable precautions to prevent
fires on the Property (other than such controlled burns), the Access Property or any other property
of Grantor and to prevent the spreading of any fires that may occur thereon. If a fire burns on
the Property, on the Access Property, on any other property of Grantor, or on adjacent lands that
may spread to the Property, to the Access Property or to any other property of Grantor, Grantee
agrees promptly to notify Grantor of such fire, and to have its employees or agents, who might be
carrying on operations on these lands, control or assist in controlling such fire. Grantor
reserves the right to stop or interrupt Grantee’s operations hereunder if conditions are such that,
in Grantor’s reasonable determination, continued operations are likely to start forest fires.

          (o) Grantor shall exercise due care and not intentionally start any fire on the Property or
any of Grantor’s property adjacent to the Property (the “Adjacent Property”) other than controlled
burns and site preparation burns on the Property or the Adjacent Property administered by burners
certified by the Florida Department of Agriculture & Consumer Services, Division of Forestry,
provided that Grantor shall deliver to Grantee ten (10) days prior written notice of any such
controlled burn. Any such controlled burns or site preparation burns shall comply with all
applicable laws and regulations, including regulations governing the management of smoke. Grantor
shall be liable to Grantee for all damage to the Timber on the Property arising from Grantor’s
failure to comply with this Section 6(o). Grantor shall use all reasonable precautions to prevent
fires on the Property and the Adjacent Property (other than such controlled burns or site
preparation burns) and to prevent the spreading of any fires that may occur thereon. If a fire
burns on the Property or the Adjacent Property that may spread to the Timber on the Property,
Grantor agrees promptly to notify Grantee of such fire, and to have its employees or agents, who
might be carrying on operations on these lands, control or assist in controlling such fire.
Grantee reserves the right to stop or interrupt Grantor’s operations hereunder if conditions are
such that, in Grantee’s reasonable determination, continued operations are likely to start forest
fires that may endanger the Timber.

          (p) Grantee shall deliver written notice to Grantor if Grantee discovers on the Property (i)
any non-native or invasive plant species, including, without limitation, cogon grass, kudzu and
Japanese climbing fern, or (ii) any threatened or endangered plant or animal species protected by
applicable law, including the federal Endangered Species Act of 1973; provided, however, Grantor
hereby expressly waives, relinquishes and releases any and all rights, remedies
or claims Grantor may now have or hereafter have against the Grantee for failure to deliver
any such written notice to Grantor. Grantor shall have the right, but not the obligation, to
manage the Property to control the impact on the Property of any such non-native or invasive plant
species, or any such threatened or endangered species, provided that such management does not
unreasonably interfere with the Timber Rights or Grantee’s operations hereunder.

Exhibit C

 

 

     7. Condition of Timber. Except as otherwise provided herein, Grantee represents and warrants
that it has thoroughly inspected and reviewed the condition, location, and quality of the Timber
and hereby approves and accepts the Timber in all respects AS IS, WHERE IS, AND WITH ALL FAULTS.
Grantor disclaims any implied warranties with respect to the Timber, including, without limitation,
warranties of merchantability and fitness for a particular purpose. Grantor makes no warranties or
representations whatsoever as to the suitability, quality or quantity of the Timber or the logging
conditions that may be encountered on the Property or the Access Property or that may be required
to harvest the Timber. Notwithstanding the above, the parties acknowledge that Grantee is relying
upon the records furnished by Grantor in determining which stands of timber have been thinned and
those which have not been thinned. If prior to commencing timber harvesting operations on the
Property, Grantee determines that Timber Stands identified by Grantor before the Effective Date as
not being thinned have in fact been thinned and the inventory data provided by Grantor to Grantee
before the Effective Date did not reflect reduced volume due to such thinning, Grantee will deliver
written notice of same to Grantor. If Grantor agrees with Grantee’s determination, in Grantor’s
reasonable discretion, Grantor will replace the thinned Timber with timber of comparable age, size
and acreage.

     8. Notice of Activity; Right of Inspection. Grantee shall deliver written notification by
e-mail or facsimile transmission to Grantor of the commencement (or re-commencement, in the case of
a previous suspension of operations) of harvest operations on any portion of the Property no more
than ten (10) days and no less than twenty-four (24) hours prior to commencing harvest operations.
Such notification shall indicate whether the harvest operations involve a thinning or a final
harvest and shall include a map showing the affected Timber. Grantee shall deliver to Grantor, on
or before September 15 of each year, Grantee’s harvest plan for the Timber for the next calendar
year, including the anticipated timing and location of harvesting of Timber and indicating whether
the harvest operations will involve a thinning or a final harvest. Such harvest plan shall be
delivered for informational purposes only and shall not bind Grantee. Grantor shall have the right
to inspect Grantee’s operations hereunder, including the application of fertilizers and herbicides
and any prescribed burning, to determine whether Grantee is conducting such operations in
accordance with the terms and conditions of this Timber Deed. If Grantor determines that Grantee
is not conducting such operations in compliance with the terms and conditions of this Timber Deed,
Grantor shall notify Grantee of such non-compliance in writing, describing such non-compliance with
reasonable specificity. Upon receipt of such written notice of non-compliance, Grantee shall
correct its operations within forty-eight (48) hours so that the same will comply with the terms
and provisions hereof and shall provide written notice to Grantor of the steps taken to achieve
such compliance.

     9. Easements; Minerals.

          (a) Grantor shall have the right to grant to third parties easements burdening the Property
for rights-of-way, access, pipelines, utilities or other purposes, provided that (i) Grantor shall
deliver to Grantee not less than ninety (90) days prior written notice of such easement identifying
the proposed location of such easement (the “Easement Area”), and (ii) Grantee shall have the
right, exercisable by delivering to Grantor written notice not later than thirty (30) days
following Grantee’s receipt of Grantor’s notice of the Easement Area, to remove and dispose of any
Timber located within the Easement Area within such ninety (90) day period.

Exhibit C

 

 

If Grantee fails to
deliver such notice of its intent within such thirty (30) day period, or if Grantee timely delivers
such notice but unharvested Timber remains on the Easement Area following the expiration of such
ninety (90) day period, then (A) all Timber not removed from such Easement Area within such thirty
(30) or ninety (90) day period, as applicable, shall be deemed abandoned by Grantee, (B) Grantor or
the easement holder shall have the right to remove and dispose of such Timber in its sole
discretion, and (C) Grantor shall pay or cause the easement holder to pay Grantee an amount equal
to the fair market value of such Timber. As used in this Section 9, the “fair market value“ of
such Timber shall equal the proceeds of such Timber actually received by Grantor or the easement
holder resulting from commercially reasonable efforts to sell such Timber.

          (b) Grantor shall have the right to enter into leases or other agreements to develop or
extract the oil, gas or other minerals in, on or under the Property, provided that (i) Grantor
shall deliver to Grantee a copy of such executed lease or other agreement, (ii) Grantor or its
lessee shall deliver to Grantee not less than ninety (90) days prior written notice of any mineral
activity pursuant to such lease or other agreement, identifying the proposed location of such
mineral activity (the “Mineral Activity Area”), and (iii) Grantee shall have the right, exercisable
by delivering to Grantor written notice not later than thirty (30) days following Grantee’s receipt
of Grantor’s notice of the Mineral Activity Area, to remove and dispose of any Timber located
within the Mineral Activity Area within such ninety (90) day period. If Grantee fails to deliver
such notice of its intent within such thirty (30) day period, or if Grantee timely delivers such
notice but unharvested Timber remains on the Mineral Activity Area following the expiration of such
ninety (90) day period, then (A) all Timber not removed from such Mineral Activity Area within such
ninety (90) day period shall be deemed abandoned by Grantee, (B) Grantor or its lessee shall have
the right to remove and dispose of such Timber in its sole discretion, and (C) Grantor shall pay or
cause its lessee to pay Grantee an amount equal to the net present value of such Timber. As used
in this Section 9, “net present value“ of such Timber shall equal the estimated value of such
Timber at the estimated date of the planned harvest of such Timber, discounted to its present value
using a mutually acceptable discount rate, all determined in the reasonable discretion of Grantor
and Grantee. Any disputes with respect to the determination of net present value shall be resolved
in accordance with Section 9(f).

          (c) If Grantor defaults in its obligations to deliver notice as required under Section 9(a),
Grantor shall pay or cause the easement holder to pay to Grantee the fair market value (as defined
in Section 9(a)) of any Timber damaged or removed by the easement holder that Grantee was not
reasonably able to harvest after Grantee received actual notice of such activity. Such payment by
Grantor shall be Grantee’s exclusive remedy hereunder for any such default by Grantor.

          (d) If Grantor defaults in its obligations to deliver notice as required under Section 9(b),
Grantor shall pay or cause the mineral rights holder to pay to Grantee the net present value (as
defined in Section 9(b)) of any Timber damaged or removed by the mineral rights holder that Grantee
was not reasonably able to harvest after Grantee received actual notice of such activity. Such
payment by Grantor shall be Grantee’s exclusive remedy hereunder for any such default by Grantor.
Any disputes with respect to the determination of net present value shall be resolved in accordance
with Section 9(f).

Exhibit C

 

 

          (e) For the avoidance of doubt, Grantee has accepted title to the Timber and the Timber Rights
subject to the Permitted Encumbrances (as defined below), and Grantor shall have no obligations
under this Section 9 with respect to any Permitted Encumbrances.

          (f) Any dispute or controversy arising with respect to the determination of net present value
under Section 9(b) or Section 9(d) shall be resolved by binding arbitration under the rules of the
American Arbitration Association to be conducted in the State of Florida, provided that the
arbitration proceeding shall be conducted by a panel of three (3) arbitrators. Each party shall
appoint an arbitrator, and the appointed arbitrators shall jointly select a third arbitrator, which
third arbitrator shall be the chairman of the panel. The decision of a majority of the panel of
arbitrators shall bind the parties. Both parties agree to cooperate in the expeditious conduct of
any such arbitration. It shall be the obligation of the aggrieved party to seek such arbitration
forthwith upon the failure of the other party to accede to the demands of the aggrieved party or
the failure of the parties to reach a mutually acceptable resolution. The non-prevailing party
shall bear all costs of the arbitration and both parties’ reasonable attorneys’ fees.
Notwithstanding anything to the contrary in Section 14, this Section 9(f) shall exclusively govern
the resolution of disputes regarding the determination of net present value under Section 9(b) or
Section 9(d).

     10. Indemnification. Each of Grantor and Grantee (each, as applicable, an “Indemnifying
Party”) shall defend, indemnify and hold harmless the other party, its affiliates and their
assignees, contractors, members, shareholders, directors, officers, managers, partners, employees,
agents and consultants (each, as applicable, an “Indemnitee”), from and against all claims and
causes of action, pending or threatened, of any kind or nature, by third parties, related to or
arising out of any bodily injury to, or death of, any person, or any physical damage to tangible
property, resulting from or due to the activities, operations or omissions of said Indemnifying
Party, its contractors, agents and employees, on the Property or on any other property of Grantor,
except to the extent such injury or damage also results in part from the grossly negligent or
intentionally wrongful act or omission of any Indemnitee. The Indemnifying Party shall indemnify
any Indemnitee for any incidental, consequential or punitive damages that such Indemnitee is
required to pay to any third party resulting from or due to the activities, operations or omissions
of said Indemnifying Party, its contractors, agents and employees on the Property or on any other
property of Grantor. The provisions of this Section 10 shall survive the termination of this
Timber Deed.

     11. Insurance.

          (a) Grantee, and any contractors and agents engaged by or on behalf of Grantee, will keep in
effect until the Termination Date, at its sole expense, the following insurance coverages with
insurers satisfactory to Grantor, in addition to any other insurance required by law:

          (i) To be maintained by Grantee and by any contractors or agents retained by Grantee
under any logging contracts and vendor contracts with respect to the Timber or the Property
which include machinery use and transport (including logging, prescribed burn — ground,
mechanical site preparation, road work, drainage, machine planting, and ground
applications):

Exhibit C

 

 

          (A) Worker’s Compensation policy meeting at least statutory requirements and
Employer’s Liability Insurance with limits not less than $500,000 fully covering all
employees and supervisors participating in Grantee’s or such contractor’s operations
hereunder. Grantee or such contractor must deliver a certificate of insurance to
Grantor stating that Workmen’s Compensation coverage includes a waiver of
subrogation against Grantor. The policy shall cover owners, partners and executives
of Grantee or such contractor and shall include waiver of subrogation against
Grantor.

          (B) Commercial General Liability policy on a broad form basis to cover all
operations of Grantee and its contractors and agents under this Timber Deed. Levels
of coverage shall be at least $2,000,000 per occurrence with a $2,000,000 aggregate
limit. Coverage shall include personal injury, products/completed operations,
comprehensive general liability, loss due to accidental overcut and damage due to
fire. The policy shall contain an endorsement showing contractual liability
coverage as to any indemnity of Grantee hereunder. Such policy must include
protection in the event a logging contractor cuts across the harvest line (for
Grantee and for logging contractors only).

          (C) Vehicle Liability policy upon all owned, hired and non-owned motor vehicles
or any motor vehicle used in the performance of the obligations or operations of
Grantee, its contractors or agents under this Timber Deed. Levels of coverage shall
be at least $1,000,000 for bodily injury and property damage combined single limit
in any one accident. The policy shall contain a specific endorsement affording
coverage to all “non-owned and hired“ vehicles used by Grantee or the contractor or
agent in conducting operations under this Timber Deed.

          (D) Commercial General Liability and Vehicle Liability insurance policies shall
name Grantor and (for so long as Vulcan Timberlands LLC remains Grantee hereunder)
Resource Management Service, LLC as additional insured.

          (E) Commercial umbrella liability insurance to provide excess coverage above
the limits of the other insurance policies described in this Section 11(a)(i), with
limits not less than $5,000,000 per occurrence and $5,000,000 in the aggregate.

          (ii) To be maintained by any contractors retained by Grantee with respect to the Timber
or the Property, other than contractors governed by Section 11(a)(i), including, without
limitation, contracts for timber cruising/marking, backpack herbicide/fertilizer
application, surveying, boundary line maintenance, and GPS work:

          (A) Worker’s Compensation policy meeting at least statutory requirements and
Employer’s Liability Insurance with limits not less than $500,000 fully covering all
employees and supervisors participating in such

Exhibit C

 

 

contractor’s operations hereunder.
Such contractor must deliver a certificate of insurance to Grantor stating that
Workmen’s Compensation coverage includes a waiver of subrogation against Grantor.
The policy shall cover owners, partners and executives of such contractor and shall
include waiver of subrogation against Grantor.

          (B) Commercial General Liability policy on a broad form basis to cover all
operations of such contractor. Levels of coverage shall be at least $1,000,000 per
occurrence with a $1,000,000 aggregate limit. Coverage shall include personal
injury, products/completed operations, comprehensive general liability, loss due to
accidental overcut and damage due to fire. The policy shall contain an endorsement
showing contractual liability coverage as to any indemnity of such contractor.

          (C) Vehicle Liability policy upon all owned, hired and non-owned motor vehicles
or any motor vehicle used in the performance of the obligations or operations of
such contractor. Levels of coverage shall be at least $1,000,000 for bodily injury
and property damage combined single limit in any one accident. The policy shall
contain a specific endorsement affording coverage to all
“non-owned and hired” vehicles used by such contractor in conducting operations on behalf of Grantee.

          (D) Commercial General Liability and Vehicle Liability insurance policies shall
name Grantor and (for so long as Vulcan Timberlands LLC remains Grantee hereunder)
Resource Management Service, LLC as additional insured.

          (b) Such policies shall name Grantor as an additional insured by endorsements to the policies,
as if the additional insured were the named insured, without restrictions. Grantee shall provide
Grantor with certificates of insurance throughout the term of this Timber Deed, as requested,
providing that such insurance shall not be canceled without thirty (30) days’ prior written notice.
Should Grantee or its contractors or agents fail to furnish to Grantor current evidence upon
demand of any insurance required hereunder, or in the event of cancellation or
adverse material change in any such insurance, Grantor may, at its option, suspend operations
under this Agreement until insurance is obtained.

          (c) Grantor may, at Grantor’s option and upon no less than ninety (90) days advance written
notice to the other party, amend the coverages and policy limits set forth in this Section 11
without the consent of Grantee, provided that such new coverages and policy limits shall be
consistent with the coverage requirements imposed generally in the commercial forestry industry in
the Southern region of the United States.

     12. Compliance with Laws. Grantee shall comply with all federal, state and local laws, rules,
and regulations applicable to Grantee’s operations on the Property or the Access Property pursuant
to this Timber Deed, including, without limitation, environmental laws and regulations, workmen’s
compensation laws and regulations, and the securing by Grantee of all necessary licenses and
permits incidental to said operations. Grantee covenants and agrees that it

Exhibit C

 

 

will not conduct its
operations in a manner which could cause Grantor to be in violation of any federal, state or local
law, rule or regulation or any SFI Standards. Grantor covenants and agrees that it will not use or
operate the Property or the Access Property, or conduct any activities on the Property or the
Access Property, which could cause Grantee to be in violation of any federal, state or local law,
rule or regulation.

     13. Taxes. Grantor shall pay all ad valorem property taxes assessed against the Property and
the Timber. Grantee shall pay all severance taxes and assessments assessed against the Timber
harvested by Grantee as may now or hereafter be required to be paid by the laws of the State of
Florida or of the United States. This Section 13 shall survive the termination of this Timber
Deed.

     14. Remedies.

          (a) Notice of Violation and Corrective Action. If either party determines that a violation of
the terms of this Timber Deed has occurred or is imminently threatened, that party shall give
written notice to the other party of such violation and demand corrective action or damages
sufficient to cure the violation; provided, however, if the violation involves injury to the
Property or any other property of Grantor resulting from Grantee’s exercise of its Timber Rights,
to restore the portion of the Property or such other property of Grantor so injured to its prior
condition, to the extent reasonably practicable, in accordance with a plan reasonably approved by
Grantor.

          (b) Injunctive Relief. If the offending party fails to cure the violation within thirty (30)
days after receipt of notice thereof from the complaining party, or under circumstances where the
violation cannot reasonably be cured within a thirty (30) day period, the offending party fails to
begin curing such violation within the thirty (30) day period, or fails to continue diligently to
cure such violation until finally cured, the complaining party may bring an action at law or in
equity, in a court of competent jurisdiction to enforce the terms of this Timber Deed, to enjoin
the violation, by temporary or permanent injunction, and to require the restoration of the Property
or other property of Grantor to the condition that existed prior to any such injury, to the extent
reasonably practicable. Notwithstanding the foregoing, if in the
reasonable determination of the complaining party, a violation by the offending party
threatens irreparable damage to the complaining party, the complaining party shall have the right
to undertake such cure, in which event the offending party shall be responsible for the payment for
any reasonable expenses actually incurred by the complaining party in connection with such cure
within thirty (30) days after the offending party’s receipt of a detailed invoice (and relevant
documentation).

          (c) Damages. Either party is entitled, in an action filed in a court of competent
jurisdiction for a breach or violation of this Timber Deed, to seek recovery of damages, including,
without limitation, reasonable attorneys’ fees, costs and fines.

          (d) Forbearance. Forbearance by any party hereto to exercise its rights under this Timber
Deed in the event of any breach of any term of this Timber Deed by the other party hereto, shall
not be deemed or construed to be a waiver by the non-breaching party of such term or of any
subsequent breach of the same or any other term of this Timber Deed or of such non-

Exhibit C

 

 

breaching party’s rights under this Timber Deed. No delay or omission by a party hereto in the exercise of
any of its rights or remedies upon any breach by the other party hereto shall impair such right or
remedy or be construed as a waiver.

          (e) Third Party Violations. Each party has the right, separately or collectively with the
other party, to pursue all legal remedies available against any third party responsible for any
injury or damage to the Property, the Timber or any other property of Grantor. Grantor and Grantee
each agree to promptly notify the other in the event of notice or actual knowledge that injury or
damage has occurred, is occurring, or will occur in the future to the Property, the Timber or any
other property of Grantor as a result of any activity by a third party, including any violation of
this Timber Deed. If one party pursues such legal proceedings, the other may, in its discretion,
elect to join in such legal proceedings at its own expense. In the event of a monetary recovery
from the third party, all expenses and legal fees reasonably incurred by both Grantor and Grantee
in connection with the action shall be paid out of the amount recovered.

          (f) Acts Beyond A Party’s Control. Nothing contained in this Timber Deed shall be construed
to entitle any party to bring any action against another party for any injury to or change in the
Property, the Timber or any other property of Grantor resulting from causes beyond such party’s
control, including without limitation, fire (subject to Section 6(n)), flood, storm, earth
movement, insect infestation, disease, acid rain, airborne pollutants introduced by third parties,
acts of third parties, or from any prudent action taken by a party under emergency conditions to
prevent, abate, or mitigate significant injury to the Property, the Timber or any other property of
Grantor resulting from such causes.

          (g) Payment for Unauthorized Cutting and Damage to Trees. If Grantee or its employees,
agents, or contractors cut or materially damage any trees (whether merchantable or
pre-merchantable) on the Property or on any other property of Grantor (other than the Timber, and
except as permitted by this Timber Deed), or if Grantor or its employees, agents, or contractors
cut or materially damage any Timber (except as permitted by this Timber Deed), the party causing
such damage shall pay to the other, as liquidated damages and not as a penalty (Grantor and Grantee
acknowledging that actual damages would be difficult to ascertain and that
such amount represents a reasonable estimate of such damages), an amount equal to three (3)
times the value of such trees or Timber, as applicable, immediately prior to such damage (as valued
on the date of the cutting or material damage). The value of such trees or Timber, as applicable,
shall be based upon the then-current market value for such trees or Timber, as applicable, as
calculated using recognized industry standards for the region in which such trees or Timber, as
applicable, were damaged. If the parties are unable to agree upon a mutually acceptable recognized
standard and/or value, the parties shall hire a mutually acceptable consultant to appraise such
trees or Timber, as applicable, whose decision shall be binding.

          (h) Survival. The enforcement of rights and remedies by either party under this Section 14
shall survive the expiration or termination of this Timber Deed.

     15. Notices. All notices required or permitted to be given hereunder shall be in writing,
signed by the party giving such notice or its legal counsel, and shall be deemed to be delivered,
whether or not actually received, (i) when personally delivered by same-day commercial courier or
messenger service; (ii) three (3) days after being deposited with the

Exhibit C

 

 

United States Postal Service
with postage paid for certified delivery with return receipt requested; (iii) when sent by next day
business commercial service delivery; or (iv) when delivered by e-mail or facsimile transmission.
All notices shall be sent to the addresses set forth below, or to such other address or addresses
as any party may from time to time, upon five (5) business days’ advance written notice to the
other party, designate as to itself.

	 	Grantor:	 	St. Joe Timberland Company of Delaware, L.L.C.

133 South WaterSound Parkway

WaterSound, FL 32413

Attention: David Harrelson

Vice President of Timberlands

Fax: (850) 588-1961

Email: dharrelson@joe.com
	 
	 	with a copy to:	 	St. Joe Timberland Company of Delaware, L.L.C.

133 South WaterSound Parkway

WaterSound, FL 32413

Attention: Reece B. Alford, Esq.

Fax: (850) 588-2310

Email: reece.alford@joe.com
	 
	 	Grantee:	 	Vulcan Timberlands LLC

5605 Woodbine Rd

Pace, FL 32571

Attention: Tom Cathey

Fax 850 994 3806

Email: tcathey@resourcemgt.com

     16. Assignment; Successors and Assigns. The Timber and the Timber Rights created hereunder
shall be freely assignable by Grantee, subject to the terms of this Timber Deed, provided that
Grantee has delivered prior written notice to Grantor of any transfer, in whole or in part, of the
Timber Rights. Nothing herein shall restrict Grantor’s right to transfer, in whole or in part, its
rights in and to the Property, provided that any such transfer (other than transfers of rights in
and to any portion of the Released Property) prior to the expiration of the Timber Rights shall be
subject to this Timber Deed. Except as otherwise provided herein, the provisions of this Timber
Deed shall inure to the benefit of, and shall be binding upon, the parties, their heirs,
successors, representatives and assigns.

     17. Relationship. Neither party shall in any respect be deemed to be or represent itself to
be an agent of the other party. Furthermore, no relationship of employer-employee or master and
servant is intended, nor shall it be construed, to exist between the parties, or between any party
and any servant, agent, contractor, customer, employee and/or supplier of any other party, by
reason of this Timber Deed. Each party shall select and pay its own servants, agents, contractors,
customers, employees and/or suppliers and neither party nor its servants, agents, contractors,
customers, employees, or suppliers shall be subject to any orders, supervision or

Exhibit C

 

 

control of the other party. The parties are neither partners nor joint venturers, and this Timber Deed shall not
be construed as creating any type of partnership or joint venture.

     18. Severability. Whenever possible, each provision in this Timber Deed shall be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this
Timber Deed is held to be prohibited or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Timber Deed.

     19. Attorney’s Fees. If arbitration, mediation, litigation or any other proceeding of any
nature whatsoever (including any proceeding under the U.S. Bankruptcy Code) is instituted or
appealed in connection with any controversy arising out of this Timber Deed or to interpret or
enforce any rights, the prevailing party shall be entitled to recover its attorneys’, paralegals’,
accountants’, and other experts’ fees and all other fees, costs, and expenses actually incurred, as
determined to be reasonable by the arbitrator(s) or court(s), in addition to all other amounts
provided by law. The prevailing party will be deemed to be the party to have won on the issues
with the greatest value as determined by the arbitrator(s) or court(s).

     20. Time of Essence. Time is of the essence of this Timber Deed.

     21. Governing Law. This Timber Deed will be governed by, and construed in accordance with,
the laws of the State of Florida, without giving effect to the conflicts of law principles thereof.

     TO HAVE AND TO HOLD the Timber, together with all and singular the rights and appurtenances
thereto in anywise belonging unto Grantee, until the Termination Date, at which time this Timber
Deed shall expire (other than any provisions of this Timber Deed that expressly survives such
termination or expiration) and all rights granted to Grantee shall revert to, and shall
automatically vest in, Grantor, its successors and assigns, without the necessity of any further
deed or instrument.

     AND THE SAID Grantor will warrant and defend the right, title and interest to the Timber unto
Grantee, its successors and assigns, against the lawful claims of all persons claiming by, through
or under Grantor, but not otherwise, subject, however, to (i) the provisions of this Timber Deed,
and (ii) the “Permitted Encumbrances” set forth on Exhibit E attached hereto and made a part
hereof.

[remainder of page intentionally left blank; signatures begin on the following page]

Exhibit C

 

 

     IN WITNESS WHEREOF, Grantor and Grantee have caused this Timber Deed to be executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 

	Witnesses:	 	 	 	GRANTOR:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ST. JOE TIMBERLAND COMPANY
	 	 	 	 	 	 	 
	Name:	 	 	 	 	 	OF DELAWARE, L.L.C., a Delaware
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Title:
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	STATE OF
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	COUNTY OF
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

     The foregoing instrument was acknowledged before me this _____ day of ______________________,
     2011,      by ____________________, as _______________ of St. Joe Timberland Company of Delaware,
L.L.C., a Delaware limited liability company, on behalf of said limited liability company. He/She o
is personally known to me or o has produced ______________________ as identification.

	 	 	 	 	 	 	 	 	 

	 	 	NOTARY PUBLIC:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Sign:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Print:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	My Commission Expires:	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	[NOTARY SEAL]	 	 

[signatures continue on following page]

Exhibit C

 

 

	 	 	 	 	 	 	 	 	 	 	 

	Witnesses:	 	 	 	GRANTEE:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	VULCAN TIMBERLANDS LLC, a
	 	 	 	 	 	 	 	 	 
	Name:	 	 	 	 	 	Delaware limited liability company
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Resource Management Service,
	 	 	 	 	 	 	 	 	LLC, an Alabama limited
	 	 	 	 	 	 	 	 	 
	Name:	 	 	 	 	 	 	 	liability company, its Manager
	 

	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 

	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 

	STATE OF
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	COUNTY OF
	 	 	 	 
	 

	 	 
	 	 	 	 

     The foregoing instrument was acknowledged before me this _____ day of ______________________,
     2011,       by ____________________, as _______________ of Resource Management Service, LLC, an Alabama
limited liability company, the Manager of Vulcan Timberlands LLC, a Delaware limited liability
company, on behalf of said company. He/She o is personally known to me or o has produced
______________________ as identification.

	 	 	 	 	 	 	 	 	 

	 	 	NOTARY PUBLIC:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Sign:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Print:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	My Commission Expires:	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	[NOTARY SEAL]	 	 

Exhibit C

 

 

Exhibit A to Form of Timber Deed

Location of Timber

Exhibit C

 

 

Exhibit B to Form of Timber Deed

Legal Description of Property

Exhibit C

 

 

Exhibit C to Form of Timber Deed

Age of Timber Stands

Exhibit C

 

 

Exhibit D to Form of Timber Deed

Form of Release

	 	 	 	 	 

	This instrument prepared by:

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	After recording return to:

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

PARTIAL RELEASE OF TIMBER DEED

     THIS PARTIAL RELEASE OF TIMBER DEED (this “Partial Release”) is executed by
___________________________, a __________________ (the “Releasing Party”), with an address of
____________________________.

W I T N E S S E T H:

     WHEREAS, the Releasing Party obtained certain rights in and to the timber located on the real
property more particularly described on Exhibit A attached hereto and made a part hereof (the
“Released Property”), pursuant to that certain Timber Deed dated as of _________, 2011, between the
Releasing Party and St. Joe Timberland Company of Delaware, L.L.C. (the “Released Party”), and
recorded in the public records of ___________ County, Florida, in Book ___, Page ___ (the “Timber
Deed”); and

     WHEREAS, the Releasing Party has completed harvesting of Timber, or has otherwise abandoned
its rights to harvest Timber, pursuant to the Timber Deed on the Released Property.

     NOW, THEREFORE, the Releasing Party hereby surrenders and releases the Released Property,
including all Timber and Timber Rights located thereon or derived therefrom (each as defined in the
Timber Deed), to the Released Party; provided, however, the Releasing Party reserves rights of
ingress and egress over existing roads located on the Released Property that are reasonably
necessary to access and harvest the remaining Timber on portions of the Property (as defined in the
Timber Deed) other than the Released Property, all in accordance with the terms and conditions of
the Timber Deed. The Released Party shall have no further obligations under the Timber Deed to the
Releasing Party with respect to the Released Property, and the Releasing Party shall have no
further rights in or to the Released Property except for access rights over existing roads herein
reserved.

[remainder of page intentionally left blank; signatures appear on following page]

Exhibit C

 

 

     IN WITNESS WHEREOF, the Releasing Party has caused this Partial Release to be executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 	 	 

	Witnesses:	 	 	 	RELEASING PARTY:	 	 
	 
	 	 	 	 	 	 	 	 	,a	 
	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	STATE OF
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	COUNTY OF
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

     The foregoing instrument was acknowledged before me this _____ day of ______________________,
20__, by ____________________, as _______________ of_________________________, a
_______________________, on behalf of said ______________________. He/She o is personally known to
me or o has produced ______________________ as identification.

	 	 	 	 	 	 	 	 	 

	 	 	NOTARY PUBLIC:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Sign:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Print:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	My Commission Expires:	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	[NOTARY SEAL]	 	 

Exhibit C

 

 

Exhibit E to Form of Timber Deed

Permitted Encumbrances

     Each of the following is a “Permitted Encumbrance” to Grantor’s special warranty of title
given in this Timber Deed, to the extent the same may affect the Timber and the Timber Rights:

     1. Building or zoning ordinances;

     2. Riparian rights of third parties and governmental entities to the extent a tract included
in the Property is bounded or traversed by a river, stream, branch or lake, and claims of third
parties and governmental entities to any portion of the Property formerly or presently comprising
the shores or bottom of navigable waters;

     3. To the extent any portion of the Property is bounded or traversed by a public road or
maintained right of way, the rights of others (whether owned in fee or by easement) in and to any
portion of the Property that lies within such road or maintained right of way;

     4. Railroad tracks and related facilities, if any (whether owned in fee or by easement), and
related railroad easements or railroad rights of way, if any, traversing the Property and the
rights of railroad companies to any tracks, siding, ties and rails associated therewith;

     5. Intentionally Omitted;

     6. Easements, discrepancies or conflicts in boundary lines, shortages in area, encroachments
or any other facts that a current and accurate survey of the Property would disclose;

     7. Rights to and/or interests in all oil, gas and other minerals or other substances of any
kind or character as may have been previously reserved by or conveyed to others and any leases
concerning any of such oil, gas, other minerals or other substances in, on or under the Property;

     8. Rights, if any, relating to the construction and maintenance in connection with any public
utility of existing wires, poles, pipes, conduits and appurtenances thereto, on, under, above or
across the Property;

     9. All matters of record;

     10. Rights of others in and to the Property and the Timber under any unrecorded agreements
disclosed by Grantor to Grantee in that certain Disclosure Letter delivered by Grantor to Grantee
before the Effective Date;

     11. Intentionally Omitted; and

     12. Cemeteries and burial grounds on any portion of the Property.

Exhibit C

 

 

Exhibit D

Form of Reliance Letter

[date]

[Assignee]

Re: Letter of Reliance for Phase I Environmental Site Assessment

Dear [Assignee]:

SLR International Corp (SLR) performed a Phase I Environmental Site Assessment (ESA), dated [date],
of the [property description] in accordance with ASTM Practice E 2247-08, Standard Practice for
Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or
Rural Property. SLR has been engaged in and is qualified to conduct a Phase I ESA of real property
with respect to environmental risks associated with the ownership and operation of such property,
based on data and information accessible to SLR.

At the request of [client], this Letter of Reliance is hereby furnished to [Assignee]
(“Recipient”), allowing Recipient to rely upon the above-referenced Phase I ESA including the
findings and conclusions presented therein subject to the limitations set forth in the Phase I ESA.
However, by accepting this offer of reliance, Recipient agrees that any use or reliance placed on
the ESA shall be limited by the terms and conditions contained in SLR’s Proposal for Environmental
Due Diligence Services dated [date] (copy attached) and the Professional Services Agreement between
SLR and [client] dated [date]. Further, we note that the actual site conditions may change with
time and that hidden conditions not discoverable at the time the assessment was performed, or
within the scope of the assessment, may exist at the site. The site conditions as noted in the
Phase I ESA are representative of those on the days the site reconnaissance was performed and SLR
makes no representations regarding current conditions or compliance.

SLR represents to [Assignee] that the Phase I ESA meets the “All Appropriate Inquiry” standard set
forth in 40 C.F.R. Section 312. SLR makes no other representations to Recipient except that it has
used the degree of care and skill ordinarily exercised by environmental consultants in performing
the services described in the Phase I ESA.

Very truly yours,

SLR International Corp

Eugene T. Watson, P.G.

Principal

Exhibit D

 

 

Exhibit E

Permitted Encumbrances

     Each of the following is a Permitted Encumbrance to the extent the same may affect the Timber:

     1. Building or zoning ordinances;

     2. Riparian rights of third parties and governmental entities to the extent a tract included
in the Property is bounded or traversed by a river, stream, branch or lake, and claims of third
parties and governmental entities to any portion of the Property formerly or presently comprising
the shores or bottom of navigable waters;

     3. To the extent any portion of the Property is bounded or traversed by a public road or
maintained right of way, the rights of others (whether owned in fee or by easement) in and to any
portion of the Property that lies within such road or maintained right of way;

     4. Railroad tracks and related facilities, if any (whether owned in fee or by easement), and
related railroad easements or railroad rights of way, if any, traversing the Property and the
rights of railroad companies to any tracks, siding, ties and rails associated therewith;

     5. All ad valorem real property taxes with respect to the Timber for the year 2011 and
subsequent years not yet due and payable;

     6. Easements, discrepancies or conflicts in boundary lines, shortages in area, encroachments
or any other facts that a current and accurate survey of the Property would disclose;

     7. Rights to and/or interests in all oil, gas and other minerals or other substances of any
kind or character as may have been previously reserved by or conveyed to others and any leases
concerning any of such oil, gas, other minerals or other substances in, on or under the Property;

     8. Rights, if any, relating to the construction and maintenance in connection with any public
utility of existing wires, poles, pipes, conduits and appurtenances thereto, on, under, above or
across the Property;

     9. All matters of record;

     10. Rights of others in and to the Property and the Timber under the Thinnings Supply
Agreement and those certain unrecorded agreements described in the Disclosure Letter;

     11. Intentionally Omitted; and

     12. Cemeteries and burial grounds on any portion of the Property.

Exhibit E

 

 

Exhibit F

Form of Thinnings Supply Agreement

[attached]

Exhibit F

 

 

THINNINGS SUPPLY AGREEMENT

     This THINNINGS SUPPLY AGREEMENT, dated as of the ___ day of __________________, 2011 (this
“Agreement”), is between VULCAN TIMBERLANDS LLC, a Delaware limited liablity company (“Owner”), and
ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C., a Delaware limited liability company (“St. Joe”).

     A. Pursuant to those certain Timber Deeds dated on or about the date hereof between St. Joe
and Owner (the “Timber Deeds”), Owner has purchased certain standing timber and other rights from
St. Joe, the location of which timber is more particularly described on Exhibit A attached hereto
(the “Timber”).

     B. In connection with the sale of the Timber, Owner has agreed to enter into this Agreement to
sell to St. Joe not less than eighty-five percent (85%) of all Thinnings (as defined herein)
offered for sale by Owner and St. Joe has agreed to purchase from Owner not less than eighty-five
(85%) percent of all First Thinnings offered for sale by Owner.

     NOW, THEREFORE, in consideration of the terms and conditions set out herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

     1. Offers to St. Joe.

          (a) If Owner decides, in its sole discretion, to harvest or offer for sale First
Thinnings in any given year, Owner hereby agrees to offer to sell to St. Joe all of such
First Thinnings, and St. Joe agrees to purchase not less than eighty-five percent (85%) of
such First Thinnings, in accordance with the procedures of this Section 1 and the terms and
conditions of this Agreement. For purposes of this Agreement, “First Thinnings” means the
volume of pulpwood, chip-n-saw and sawtimber derived from the first cutting and removal, as
directed by Owner, of some portion of the standing trees from the Timber then owned by
Owner, being done as a silvicultural process to improve the quality of the residual stand,
and commonly known in the timber industry as “first thinnings.” First Thinnings will not
include any “second thinnings,” or clear-cuts, but only volumes from stands being entered to
be thinned for the first time.

          (b) On or before each September 15 during the Term (as defined below) (other than the
final September 15 of the Term), Owner shall deliver to St. Joe a written offer (each, an
“Offer”) identifying and setting forth (i) all First Thinnings that Owner intends to harvest
or offer for sale during the following calendar year (the “Annual Plan”), (ii) the estimated
volume, expressed in tons, of the First Thinnings identified in the Annual Plan (the
“Offered Volume”); (iii) the tracts on which all such First Thinnings are located, and (iv)
the prescription for thinning all such First Thinnings (the “Prescription”), which
Prescription (A) shall be commercially reasonable, commercially practicable and economically
feasible, (B) shall include, in addition to the Offered Volume, a list of all compartments
and stands within the tracts and the intended residual basal area and trees per acre, and
(C) shall designate for removal not less than

1

 

twenty (20) tons per acre. If St. Joe determines in its reasonable discretion that any
Prescription does not satisfy the criteria specified in clause (iv) above, St. Joe shall
have the right to object to the volume subject to such Prescription (not to exceed fifteen
percent (15%) of the Offered Volume) by delivering written notice to Owner within twenty
(20) days following St. Joe’s receipt of such Prescription, and the parties shall use good
faith efforts to agree upon a revised Prescription acceptable to both parties in their
reasonable discretion; provided, however, in the event that within ten (10) days after St.
Joe’s objection to the fifteen percent (15%) or less of the Offered Volume the parties are
unable to agree upon a revised Prescription, said portion of the Offered Volume objected to
by St. Joe shall be removed from the Prescription and the Offered Volume (such deleted
portion being the “Objected Volume”) and Owner shall be authorized to sell such Objected
Volume on the open market to any third party in accordance with Section 2. The Objected
Volume shall be deemed for all purposes of this Agreement not to constitute a part of the
Offered Volume, and St. Joe shall have no obligation to purchase any portion of the Objected
Volume. If Owner desires to harvest or offer for sale any First Thinnings not previously
described in an Offer, Owner shall first deliver a new Offer to St. Joe with respect to such
additional First Thinnings, which Offer shall be subject to the procedures of this Section 1
and the terms and conditions of this Agreement. The parties acknowledge that in each Offer,
Owner is offering to sell the First Thinnings on the timber stands described in an Offer,
and that the volumes described in an offer are estimates for planning purposes only.

          (c) St. Joe shall be obligated to accept not less than eighty-five percent (85%) of the
Offered Volume described in any Offer (provided, however, that the total Offered Volume
shall be reduced by any Objected Volume before calculating such eighty-five percent (85%)).
St. Joe shall have a period of 30 days after receipt of an Offer (the “Offer Period”) to
notify Owner in writing of the portion of the Offered Volume that St. Joe desires to
purchase, which may be all but not less than eighty-five percent (85%) of the Offered
Volume. St. Joe shall accept an Offer on a tract-by-tract basis, designating in its
acceptance the tracts from which St. Joe agrees to purchase the Offered Volume. The portion
of the Offered Volume accepted by St. Joe (the “Accepted Volume”) shall be purchased and
sold hereunder in accordance with the terms of the applicable Offer and this Agreement. If
St. Joe fails to deliver written notice to Owner accepting an Offer before the expiration of
the Offer Period, such failure shall be deemed an acceptance to purchase (85%) of the
Offered Volume described in such Offer, and the parties shall agree in their reasonable
discretion as to the tracts described in the Offer from which St. Joe will purchase the
First Thinnings.

          (d) Within thirty (30) days following St. Joe’s acceptance or deemed acceptance of an
Offer, Owner and St. Joe shall enter into a Pay-As-Cut Timber Sales Agreement in the form of
Exhibit B attached hereto with respect to all Accepted Volume (each a “Timber Sales
Agreement”). Each Timber Sales Agreement shall be effective as of the immediately following
January 1, provided that any Timber Sales Agreement entered into with respect to an Offer
made in accordance with the final sentence of Section 1(b) shall be effective as of the date
that St. Joe and Owner enter into such

2

 

Timber Sales Agreement. Owner shall make available and sell, and St. Joe shall harvest
and acquire, the Accepted Volume in accordance with the Timber Sales Agreement and this
Agreement.

          (e) The price, by product, for all Accepted Volume shall equal the average reported
price for the most recent four quarters for the applicable product expressed on a $/ton
basis in Florida Region 2, as published in Timber Mart-South as of the date that St. Joe and
Owner enter into the applicable Timber Sales Agreement.

     2. Offers to Other Parties. Owner shall have the right to harvest or offer for sale to any
third party any Objected Volume under Section 1(b) and the portion of the Offered Volume rejected
or deemed rejected by St. Joe under Section 1(c) (collectively, the “Unrestricted Volume”), after
the earlier to occur of (i) the expiration of the Offer Period with respect to such Offer, and (ii)
the rejection by St. Joe of a portion of the Offered Volume described in such Offer. Owner shall
have the right to harvest or sell the Unrestricted Volume on any terms, provided that harvest or
sale of the Unrestricted Volume shall occur in compliance with the Prescription described in the
applicable Offer. If (a) Owner changes the Prescription with respect to any portion of the
Unrestricted Volume, or (b) Owner has not harvested any portion of the Unrestricted Volume or has
not entered into a binding agreement to sell any portion of the Unrestricted Volume on or before
the date that is one year following the delivery of the Offer that originally described such
Unrestricted Volume, then such portion of the Unrestricted Volume shall again become subject to the
provisions of paragraph 1. Provided that Unrestricted Volume is sold to a third party in
compliance with this Agreement, no such third party purchaser of Unrestricted Volume shall be
subject to this Agreement, and such third party purchaser may sell or dispose of such Unrestricted
Volume without regard to any restrictions imposed by this Agreement.

     3. Audit Rights. St. Joe shall have the right to audit Owner’s compliance with the terms of
this Agreement, which terms require Owner to offer to sell to St. Joe all First Thinnings offered
by Owner in any given year, by delivering written notice to Owner of St. Joe’s exercise of such
right. Owner shall provide St. Joe or its representative with access during normal business hours
to all records and other information necessary to complete such audit as are commercially
reasonable. Furthermore, St. Joe shall have the right to access and inspect the Timber for
purposes of monitoring the performance of Owner’s obligations pursuant to the terms herein;
provided, however, in no case shall St. Joe unreasonably interfere with the business of Owner. St.
Joe shall provide to Owner, upon request, all findings and supporting documentation of St. Joe
following such audit. St. Joe shall be responsible for all costs of any such audit.

     4. Term. The term of this Agreement (the “Term”) shall commence on the date of execution
hereof and shall expire at 11:59 p.m. on December 31, 2020.

     5. Assignment and Termination.

          (a) Except as otherwise provided herein, no party may assign this Agreement without the
prior written consent of the other party.

3

 

          (b) Owner may transfer ownership of all or any portion of the Timber at any time at
Owner’s sole discretion, subject to the terms of the Timber Deeds, provided that the Timber
shall remain subject to this Agreement following such transfer.

     6. Taxes. Owner agrees to pay, or cause to be paid, all severance taxes or other levies upon
or incident to the production and delivery of Accepted Volume hereunder which will or may
constitute a lien thereon or on any products manufactured therefrom. In no case shall Owner be
liable for any ad valorem real property taxes attributable to the Accepted Volume.

     7. Remedies. If Owner fails to comply with any of its obligations hereunder, St. Joe shall
have all rights available to it at law or in equity, including the right to enjoin the harvest or
sale of any First Thinnings not in compliance herewith, and the right of specific performance.
Likewise, if St. Joe fails to comply with any of its obligations hereunder, Owner shall have all
rights available to it at law or in equity, including the right to enjoin the harvest of any First
Thinnings not in compliance herewith or not in compliance with the Pay-As-Cut Timber Sale Agreement
attached as Exhibit B, and the right of specific performance.

     8. Notices. All notices required or permitted to be given hereunder shall be in writing,
signed by the party giving such notice or its legal counsel, and shall be deemed to be delivered,
whether or not actually received, (i) when personally delivered by commercial courier service or
other messenger; (ii) three (3) days after being deposited with the United States Postal Service
with postage paid for certified delivery with return receipt requested; (iii) when sent by next day
business commercial service delivery, or (iv) when transmitted by e-mail evidenced by a
confirmatory response e-mail or by facsimile evidenced by a confirmed receipt, with a copy sent by
any of the means permitted by clauses (i), (ii) or (iii) above on the same day the e-mail or
facsimile transmission is sent by the party giving such notice. For purposes of notice, the
addresses of the parties are as follows:

	 	 	 	 	 
	 

	 	Owner:
	 	Vulcan Timberlands LLC 

Attention: Tom Cathey 

5605 Woodbine Rd. 

Pace, FL 32571 

Fax: (850) 994-3806

Email tcathey@resourcemgt.com
	 
	 	 	 	 
	 

	 	St. Joe:
	 	St. Joe Timberland Company of Delaware, L.L.C. 

133 South WaterSound Parkway 

WaterSound, FL 32413 

Attention: David Harrelson, Vice President of Timberlands

Facsimile: (850) 588-1961 

E-mail: dharrelson@joe.com

4

 

or to such other address or addresses as any party may from time to time, upon five (5) business
days’ advance written notice to the other party, designate as to itself.

     9. Complete Agreement. This Agreement, including any exhibits hereto, constitutes the entire
contractual relationship between the parties relating to the purchase and sale of First Thinnings,
and all previous negotiations, contracts and representations have been merged herein. This
Agreement may be amended only by a written instrument signed by all of the parties hereto.

     10. Recording. The parties agree to record a memorandum of this Agreement in the form of
Exhibit C attached hereto in each county in which the Timber is located.

     11. Time of Essence. Time is of the essence of this Agreement.

     12. Governing Law. This Agreement shall be construed and enforced in accordance with the laws
of the State of Florida, without regard to the principles of conflict of laws thereof.

(The remainder of this page is left blank intentionally)

5

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written set
out.

	 	 	 	 	 
	 	ST. JOE:

ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C., a

Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	OWNER:

VULCAN TIMBERLANDS LLC, a Delaware limited liability company

 	 
	 	By:  	Resource Management Service, LLC, an Alabama 	 
	 	 	limited liability company, its Manager 	 
	 

					
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 

6

 

	 	 	 	 	 

Exhibit A

Location of Timber

     The timber is located within (i) those certain cross-hatched timber stands in Calhoun County,
Florida, shown on Exhibit A-1 attached hereto and made a part hereof; and (ii) those certain
cross-hatched timber stands in Gulf County, Florida, shown on Exhibit A-2 attached hereto and made
a part hereof.

     The timber stands described on Exhibit A-1 and Exhibit A-2 are located on (i) that certain
real property located in Calhoun County, Florida, more particularly described on Exhibit A-3
attached hereto and made a part hereof; and (ii) that certain real property located in Gulf County,
Florida, more particularly described on Exhibit A-4 attached hereto and made a part hereof.

[remainder of page intentionally left blank]

Exhibit A to Thinnings Supply Agreement

 

 

Exhibit A-1

Calhoun County Timber Stand Maps

[attached]

Exhibit A to Thinnings Supply Agreement

 

 

Exhibit A-2

Gulf County Timber Stand Maps

[attached]

Exhibit A to Thinnings Supply Agreement

 

 

Exhibit A-3

Legal Description of the Property — Calhoun County

[attached]

Exhibit A to Thinnings Supply Agreement

 

 

Exhibit A-4

Legal Description of the Property — Gulf County

[attached]

Exhibit A to Thinnings Supply Agreement

 

 

Exhibit B

Form of Timber Sales Agreement

PAY-AS-CUT TIMBER SALES AGREEMENT

     THIS PAY-AS-CUT TIMBER SALES AGREEMENT (this “Agreement”), is made effective as of
________________________ , by and between VULCAN TIMBERLANDS LLC, a Delaware limited liability
company (“Owner”), and ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C., a Delaware limited liability
company (“St. Joe”).

     A. St. Joe and Owner are parties to that certain Thinnings Supply Agreement dated as of
______________, 2011 (the “TSA”).

     B. St. Joe has exercised the right to acquire certain Accepted Volume, as defined in the
TSA.

     C. St. Joe and Owner desire to enter into this Agreement with respect to the purchase and
sale of such Accepted Volume.

          NOW, THEREFORE, in consideration of the mutual undertakings of the parties set forth in this
Agreement and of other valuable considerations, the receipt and sufficiency of which the parties
hereby acknowledge and agree as follows:

     1. TSA. All capitalized terms not otherwise defined herein shall have the meanings
ascribed to such terms in the TSA. To the extent this Agreement conflicts with any provision of
the TSA, the TSA shall control.

     2. Timber to be Purchased. Owner is the owner of the timber (the “Timber”) located on
that certain tract of land containing approximately _________ acres, as more particularly described
on Exhibit A attached hereto and by this reference incorporated herein. Under the terms of this
Agreement, Owner hereby agrees to make available, sell, assign and convey to St. Joe, and St. Joe
agrees to harvest and purchase from Owner, all First Thinnings included within the Timber to be
first thinned in accordance with the Prescription attached hereto as Exhibit B (the “Timber Sale
Volume”).

     3. Purchase Price. St. Joe shall pay Owner for each ton (defined as 2,000 pounds) of
Timber Sale Volume harvested at the following rates for each product, which product classifications
shall be determined by the specifications of the applicable delivery point of the Timber Sale
Volume:

          (a) Pulpwood: $__________ per ton

          (b) Chip-n-saw: $__________ per ton

Exhibit B
to Thinnings Supply Agreement
 Page 1

  

 

          (c) Sawtimber: $__________ per ton

     4. Stumpage Reporting; Settlement; Security Practices.

          (a) St. Joe shall weigh, or cause to be weighed, each load of Timber Sale Volume on
certified scales. St. Joe shall pay Owner for such Timber Sale Volume on a weekly basis,
not later than the second Monday after the week (Monday through Sunday) in which St. Joe
delivers the Timber Sale Volume to the applicable delivery point. By way of example only,
for Timber Sale Volume delivered between Monday, November 15, 2010 and Sunday, November 21,
2010, St. Joe would pay Owner not later than Monday, November 29, 2010. Throughout the
period of this Agreement, St. Joe shall make a weekly accounting to Owner as to the product,
species, and weight of the Timber Sale Volume cut and delivered hereunder. St. Joe shall
send the stumpage check made payable to Owner along with the haul summary sheets, electronic
scale ticket listing, and a summary settlement sheet to Owner c/o Resource Management
Service, LLC, 5605 Woodbine Road, Pace, FL 36507.

          (b) Owner has the right, at Owner’s sole cost, to employ security contractors to
conduct security measures, including setting up and installing security monitors (cameras).
Owner agrees to share with St. Joe the results of any monitoring conducted by the Owner or
its representatives. St. Joe agrees to share with Owner the results of any audit conducted
by or on behalf of St. Joe of the Owner’s security measures that pertain to any stands of
Timber sold to St. Joe; and St. Joe agrees to share with the Owner the results of any audits
by St. Joe of its loggers and/or contractors harvesting the Timber.

     5. Term. The term of this Agreement shall commence on the date hereof and shall terminate
at 12:00 a.m. on the first anniversary of the date hereof (the “Term”). In the event that St. Joe’s
harvesting operations are delayed by inclement weather, floods, acts of God, strikes at mills with
which St. Joe is dealing, strikes in the woods, or strikes with carriers, including without
limitation, railway carriers, or in the event marketing conditions curtail the harvest, delivery or
sale of the Timber Sale Volume, St. Joe shall have the right, by delivering written notice to
Owner, to extend the Term by a period of time equivalent to the length of such delay, not to exceed
six (6) months, in order for St. Joe to harvest the Timber Sale Volume.

     6. Harvesting Procedures; Thinning Management; Post-Thin Assessments. All Timber Sale
Volume purchased by St. Joe shall be harvested in a modern workmanlike manner, in accordance with
good logging practices, the Prescription and the terms and conditions set forth below.

          (a) Debris. St. Joe agrees to remove all tops and logging debris from all roads,
firebreaks, fields, streams, canals, ditches or other open areas. If trees, tops, or other
logging debris falls into firebreaks, fields, streams, canals or ditches or other open
areas, St. Joe agrees to immediately remove such trees, tops, or other logging debris.

Exhibit B to Thinnings Supply Agreement

 

 

          (b) Stump Height. St. Joe will cut the stumps as low as feasible, stump height not
to exceed six inches where possible.

          (c) Harvesting Notification. St. Joe agrees to notify Owner at least twenty-four
(24) hours prior to the beginning of harvesting of the Timber Sale Volume and, in the event
harvesting is discontinued for more than two (2) weeks, St. Joe agrees to notify Owner at
least twenty-four (24) hours before resumption of the harvesting.

          (d) Thinning Management. Owner shall have the right to observe the thinning
process, including the progress of thinning, sorting and quality of trees being harvested,
the quality of residual stands, and merchandising. Owner and St. Joe agree to have
representatives of each meet twice monthly to review and discuss any issues raised by either
party concerning any of said matters above referenced. Any issues raised by either party
would be discussed at such meetings and documented. If any issues raised by either party
are not addressed in future thinnings, either party shall have the option and right to make
a formal complaint to the other party, and both parties shall promptly attempt to resolve
such issue(s). If the parties are unable to resolve any issue raised within a one week
period, either party may direct that the harvesting be stopped, in which event the parties
will each appoint an independent forestry consultant, each of which may be a consultant
previously engaged by the appointing party with respect to the TSA, and such two consultants
will in turn select a third independent forestry consultant to act with them in a panel to
determine whether there is an issue that needs to be resolved and how to resolve such issue.
A majority of the panel of consultants will reach a binding decision within fifteen (15)
days of the selection of the third consultant, and the decision of the panel of consultants
as to the resolution of the issue will be final. Each party will bear the cost of its
respective consultant and one-half (1/2) of the cost of the third consultant.

          (e) Post-thin Assessments. Basal area should be plus or minus ten (10) square feet
per acre of the contract Prescription for each stand. For the avoidance of doubt, and by
way of example only, if a Prescription requires a residual basal area of 70 square feet per
acre, a residual basal area between 60 square feet and 80 square feet per acre shall be
deemed to comply with such Prescription. St. Joe shall use commercially reasonable efforts
to comply with the following guidelines, to the extent the same are commercially practical:

               (i) Remaining trees should be uniformly distributed through out the stand with no
large holes created in the canopy.

               (ii) Stem damage, where the cambium is exposed over more than one-fourth (1/4) of the
circumference, should not exceed five (5%) percent of the total number of residual stems.

               (iii) Ruts should not be greater than six (6”) inches in depth in access corridors.

Exhibit B to Thinnings Supply Agreement

 

 

               (iv) Residual trees should be sawtimber or potential sawtimber trees.

               (v) All damaged, diseased, forked and non-merchantable trees should be harvested.

     7. Management Practices. St. Joe agrees to fully comply with (i) all applicable federal,
state, and local laws, rules and regulations including, without limitation all environmental laws,
rules, or regulations, (ii) the procedures and practices known as “Silviculture Best Management
Practices” for harvesting timber, as promulgated or amended by the Florida Department of
Agriculture and Consumer Services from time to time, and (iii) the standards of the Sustainable
Forestry Initiative, 2010-2014, of the American Forest and Paper Association. St. Joe shall not
allow any leakage, spillage, sampling or release of any hazardous waste, materials, or substances
on the real property on which the Timber is located. In the event of such spillage, St. Joe shall
promptly contain such spill and will be responsible for cleanup and disposal. St. Joe will
promptly notify Owner of any such spill and remediation. St. Joe will perform all operations in
compliance with OSHA standards.

     8. Employees and Independent Contractors. St. Joe shall harvest the Timber Sale Volume
using its own employees or using independent contractor(s) and, as such, will be responsible for
any and all obligations for labor, insurance, and other expenses incurred with respect to the
harvesting and hauling of the Timber Sale Volume.

     9. Liability. St. Joe agrees to protect, defend, indemnify, save and hold Owner harmless
from any and all liabilities, judgments, orders, decrees, awards, costs, expenses, including
attorneys’ fees, settlements, and claims, for property damage or personal injury, including death
to any person, arising out of or connected with St. Joe’s performance of this Agreement, except to
the extent any such liabilities arise out of the negligence or willful misconduct of Owner. For
the avoidance of doubt, Owner shall not be liable to St. Joe as the “Grantor” under the Timber
Deeds (as defined below) for any damage to the property of St. Joe arising out of or connected with
St. Joe’s performance of this Agreement, except to the extent any such liabilities arise out of the
negligence or willful misconduct of Owner.

     10. Insurance.

          (a) St. Joe, and any contractors and agents engaged by or on behalf of St. Joe,
will keep in effect during the Term, at its sole expense, the following insurance coverages,
in addition to any other insurance required by law:

               (i) Comprehensive general liability insurance with limits not less than $2,000,000
for bodily injury to one person, $2,000,000 for bodily injury to any group of persons as a
result of one occurrence, and $2,000,000 for property damage; provided, however St. Joe’s
contractors’ policies shall provide coverage for general liability with limits not less than
$1,000,000 per occurrence bodily injury liability and property damage liability combined and
$1,000,000 in the aggregate;

Exhibit B to Thinnings Supply Agreement

 

 

               (ii) Worker’s compensation insurance, covering all employees, including owners,
partners and executive officers, with limits no less than the statutory limits of the State
of Florida. Such worker’s compensation policy shall be endorsed to waive all rights of
subrogation against Owner and all subsidiaries thereof where permitted by law, and policies
shall include excess and stop-gap worker’s compensation coverage for all contractors and
subcontractors of the insured party.

               (iii) Commercial auto liability insurance with limits not less than $1,000,000 per
occurrence and $2,000,000 in the aggregate insuring “Any Auto” or “All Owned Autos,” “Hired
Autos” and “Non-owned Autos;”

               (iv) Commercial umbrella liability insurance to provide excess coverage above the
limits of the other insurance policies described in this Section 10(a), with limits not less
than $5,000,000 per occurrence and $5,000,000 in the aggregate (provided that this Section
10(a)(iv) shall apply only to St. Joe, and not to St. Joe’s contractors and agents).

          (b) Such policies shall name Owner as an additional insured by endorsements to the
policies, as if the additional insured were the named insured, without restrictions. St.
Joe shall provide Owner with certificates of insurance throughout the Term, as requested,
providing that such insurance shall not be canceled without thirty (30) days’ prior written
notice.

          (c) Owner may, at Owner’s option and upon no less than ninety (90) days advance
written notice to St. Joe, amend the coverages and policy limits set forth in this Section
10 without the consent of Owner, provided that such new coverages and policy limits shall be
consistent with the coverage requirements imposed generally in the commercial forestry
industry in the Southern region of the United States.

     11. Damage. Notwithstanding anything to the contrary set forth in the Timber Deeds (as
defined below), if St. Joe or its agents, contractors or employees damage timber belonging to Owner
in connection with St. Joe’s performance of this Agreement, St. Joe shall pay to Owner the fair
market value of the pre-merchantable and merchantable timber that was impaired or destroyed by St.
Joe’s activities, to the extent such destruction or impairment was not paid for under the terms of
this Agreement.

     12. Access. Owner grants to St. Joe the right of ingress and egress over the real
property on which the Timber is located, together with any other access rights that Owner has to
any adjacent property, to perform the harvesting of the Timber Sale Volume pursuant to this
Agreement. St. Joe agrees to use existing roads where possible and shall be responsible for
routine scraping and motor grading to keep the roads passable. St. Joe shall be responsible for
and agrees that it shall maintain all existing bridges and culverts used by St. Joe during the Term
in a condition that will allow St. Joe to safely haul the Timber. At the conclusion of harvest,
St. Joe shall leave all roads used during its operations in equal or better condition than when
harvesting began.

Exhibit B to Thinnings Supply Agreement

 

 

     13. Disputes. Except for those matters addressed by Section 6(d), any dispute or
controversy arising with respect to any provision of this Agreement, or the interpretation or
implementation hereof, shall be resolved by binding arbitration under the rules of the American
Arbitration Association to be conducted in the State of Florida, provided that the arbitration
proceeding shall be conducted by a panel of three (3) arbitrators. Each party shall appoint an
arbitrator, and the appointed arbitrators shall jointly select a third arbitrator, which third
arbitrator shall be the chairman of the panel. The decision of a majority of the panel of
arbitrators shall bind the parties. Both parties agree to cooperate in the expeditious conduct of
any such arbitration. It shall be the obligation of the aggrieved party to seek such arbitration
forthwith upon the failure of the other party to accede to the demands of the aggrieved party or
the failure of the parties to reach mutually acceptable resolution. The non-prevailing party shall
bear all costs of the arbitration and both parties’ reasonable attorneys’ fees. Notwithstanding
said provisions for binding arbitration, nothing herein shall be deemed to prevent or restrict the
right of either party to seek to enforce the provisions of this Agreement or enjoin a breach or
threatened breach hereof by an action for specific performance or by restraining order or
injunction obtained in a court of law or equity.

     14. Representations.

          (a) St. Joe’s Representations.

               (i) St. Joe is an entity organized and in good standing under the laws of the State
of Delaware and is authorized to transact business in the State of Florida.

               (ii) St. Joe’s execution and delivery of this Agreement to Owner and its purchase
of the Timber Sale Volume provided for herein, have been authorized by St. Joe in accordance
with applicable law, and all other actions required to be taken to authorize execution of
this Agreement and St. Joe’s performance of all obligations undertaken by it under its
terms, have been duly and regularly taken.

               (iii) There are no actions, suits or proceedings pending or to the knowledge of St.
Joe threatened against or affecting St. Joe that would impede or otherwise impair its
ability to perform its obligations under this Agreement.

          (b) Owner’s Representations.

               (i) Owner is a limited liability company organized and in good standing under the
laws of the State of Delaware and authorized to transact business in the State of Florida.

               (ii) Owner’s execution and delivery of this Agreement to St. Joe and its sale of
the Timber Sale Volume provided for herein have been authorized by Owner in accordance with
applicable law, and all other actions required to be taken to

Exhibit B to Thinnings Supply Agreement

 

 

authorize execution of this Agreement and Owner’s performance of all obligations
undertaken by it under its terms, have been duly and regularly taken.

               (iii) There are no actions, suits or proceedings pending or to the knowledge of
Owner threatened against or affecting Owner or the Timber that would impede or otherwise
impair its ability to perform its obligations under this Agreement.

               (iv) Owner has good and marketable title to the Timber Sale Volume, and Owner is
legally entitled to sell the Timber Sale Volume to St. Joe free from all liens and
encumbrances.

     15. Notices. All notices required or permitted to be given hereunder shall be in writing,
signed by the party giving such notice or its legal counsel, and shall be deemed to be delivered,
whether or not actually received, (i) when personally delivered by commercial courier service or
other messenger; (ii) three (3) days after being deposited with the United States Postal Service
with postage paid for certified delivery with return receipt requested; (iii) when sent by next day
business commercial service delivery, or (iv) when transmitted by e-mail evidenced by a
confirmatory response e-mail or by facsimile evidenced by a confirmed receipt, with a copy sent by
any of the means permitted by clauses (i), (ii) or (iii) above on the same day the e-mail or
facsimile transmission is sent by the party giving such notice. For purposes of notice, the
addresses of the parties are as follows:

	 	 	 

	      Owner:

	 	Vulcan Timberlands LLC
	 

	 	Attention: Tom Cathey
	 

	 	5605 Woodbine Rd.
	 

	 	Pace, FL 32571
	 

	 	Fax: (850) 994-3806
	 

	 	Email tcathey@resourcemgt.com
	 
	 	 
	     St. Joe:

	 	St. Joe Timberland Company of Delaware, L.L.C.
	 

	 	133 South WaterSound Parkway
	 

	 	WaterSound, FL 32413
	 

	 	Attention: David Harrelson, Vice President of Timberlands
	 

	 	Facsimile: (850) 588-1961
	 

	 	E-mail: dharrelson@joe.com

     16. Miscellaneous.

          (a) This Agreement shall be governed by the laws of the State of Florida.

          (b) No party may assign this Agreement without the prior written consent of the
other party. This Agreement shall be binding upon the parties hereto and their successors
and permitted assigns.

Exhibit B to Thinnings Supply Agreement

 

 

          (c) If any term of this Agreement shall be held to be invalid, illegal or
unenforceable, the validity of the other terms of this Agreement shall in no way be affected
thereby.

          (d) No amendment or waiver of any provision of this Agreement will in any event be
effective unless the same shall be in writing and signed by both parties. Subject to
Section 17, this Agreement and the TSA constitute the full and complete understanding of the
parties with respect to the purchase and sale of the Timber Sale Volume and supersede all
prior and contemporaneous agreements and understandings, both oral and written, between the
parties with respect thereto.

          (e) Time is of the essence of this Agreement.

          (f) All provisions of this Agreement have been negotiated at “arm’s length” and
with full representation of legal counsel, and neither Owner nor St. Joe shall be deemed to
be the drafter of this Agreement. If this Agreement is ever construed by a court of law or
by a board of arbitrators, such court or board shall not construe this Agreement or any
provisions of this Agreement against either Owner or St. Joe as the drafter of this
Agreement.

          (g) The headings used in this Agreement are for reference purposes only and shall
not be deemed to limit or affect in any way the meaning or interpretation of any of the
terms and provisions herein.

     17. Waiver Regarding Timber Deeds. The rights and obligations of Owner and St. Joe
hereunder are distinct from the rights and obligations of Owner and St. Joe under those certain
Timber Deeds dated _______________ (the “Timber Deeds”) and recorded in the public records of
Calhoun and Gulf Counties, Florida (as “Grantor” and “Grantee” therein, respectively) pursuant to
which Owner acquired title to the Timber from St. Joe. Except as provided in Section 9, this
Agreement and the Timber Deeds shall be interpreted independently of each other. Notwithstanding
anything to the contrary herein, no default by St. Joe or Owner under this Agreement, in and of
itself, shall constitute or give rise to a default under any Timber Deed, and no default by St. Joe
or Owner under any Timber Deed (as “Grantor” and “Grantee” therein, respectively), in and of
itself, shall constitute or give rise to a default under this Agreement; provided, however, the
circumstances giving rise to a default hereunder may independently give rise to a default under a
Timber Deed as provided for therein, and the circumstances giving rise to a default under a Timber
Deed may independently give rise to a default hereunder. Owner hereby waives its right to allege
or pursue any remedy or cause of action with respect to any conflict of interest that St. Joe may
have in its dual capacities hereunder and as “Grantor” under the Timber Deeds, and Owner agrees
that any exercise by St. Joe of its rights under the Timber Deeds, in its capacity as “Grantor”
therein, shall not constitute or give rise to a breach of St. Joe’s obligations to Owner hereunder.

Exhibit B to Thinnings Supply Agreement

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement on the dates set below their
respective signatures.

	 	 	 	 	 
	 	ST. JOE:

ST. JOE TIMBERLAND COMPANY OF

DELAWARE, L.L.C., a Delaware limited liability

company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	OWNER:

VULCAN TIMBERLANDS LLC, a Delaware

limited liability company

 	 
	 	By:  Resource Management Service, LLC, an 	 
	 	 	Alabama limited liability company, its

Manager 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Its:  	 	 
	 

Exhibit B to Thinnings Supply Agreement

 

 

Exhibit C

Form of Memorandum of Agreement

This instrument prepared by:

____________________________________

____________________________________

____________________________________

After recording return to:

____________________________________

____________________________________

____________________________________

MEMORANDUM OF AGREEMENT

     THIS MEMORANDUM OF AGREEMENT (this “Memorandum”) is made this ___ day of _______________, 2011
(the “Effective Date”), between ST. JOE TIMBERLAND COMPANY OF DELAWARE, L.L.C., a Delaware limited
liability company (together with its successors and assigns, “St. Joe”) with an address of 133
South WaterSound Parkway, WaterSound, Florida 32413, Attention: Legal Department, and VULCAN
TIMBERLANDS LLC, a Delaware limited liability company (together with its successors and assigns,
“Owner”), with an address of Attn: Resource Management Service, LLC, its Manager, 31 Inverness
Center Parkway, Suite 360, Birmingham, Alabama 35242.

     A. St. Joe and Owner have entered into that certain Thinnings Supply Agreement (the
“Agreement”) on or about the date hereof, with respect to certain timber owned by Owner, as more
particularly described in Exhibit A attached hereto (the “Timber”).

     B. St. Joe and Owner desire to record this Memorandum in the public land records to
evidence the existence of the Agreement including, but not limited to, those specific terms of the
Agreement set forth herein.

St. Joe and Owner hereby covenant, represent and agree as follows:

     1. St. Joe and Owner have entered into the Agreement with respect to the Timber.

     2. Pursuant to the Agreement, St. Joe has the right to harvest and acquire certain
thinnings of the Timber, as more particularly described in the Agreement.

     3. The Agreement is for a term ending on December 31, 2020.

Exhibit C to Thinnings Supply Agreement

 

 

     4. For additional terms of the Agreement, reference is made to the Agreement, which
is incorporated herein by reference and an original of which is in the possession of each of St.
Joe and Owner.

     IN WITNESS WHEREOF, St. Joe and Owner have caused this Memorandum to be executed as of the
date first above written.

	 	 	 	 	 	 	 

	Witnesses:	 	 	 	ST. JOE:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	ST. JOE TIMBERLAND COMPANY
	 	 	 	 	 
	Name:

	 	 	 	 	 	OF DELAWARE, L.L.C., a Delaware
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	limited liability company
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name:

	 	 	 	 	 	By:____________________________________________________
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:_________________________________________________
	 

	 	 	 	 	 	Title:___________________________________________________

STATE OF_____________________________

COUNTY OF___________________________

     The foregoing instrument was acknowledged before me this _____ day of ______________________,
2011, by ____________________, as _______________ of St. Joe Timberland Company of Delaware,
L.L.C., a Delaware limited liability company, on behalf of said
limited liability company. He/She o
is personally known to me or o has produced ______________________ as identification.

	 	 	 

	 

	 	NOTARY PUBLIC:
	 
	 	 
	 

	 	Sign:____________________________________________________
	 

	 	Print:____________________________________________________
	 

	 	My Commission Expires:__________________________________
	 
	 	 
	 

	 	[NOTARY SEAL]

[signatures continue on following page]

Exhibit C to Thinnings Supply Agreement

 

 

	 	 	 	 	 	 	 

	Witnesses:

	 	 	 	 	 	OWNER:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	VULCAN TIMBERLANDS LLC, a
	 	 	 	 	 
	Name:

	 	 	 	 	 	Delaware limited liability company
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	By: Resource Management Service,
	 

	 	 	 	 	 	LLC, an Alabama limited
	 	 	 	 	 
	Name:

	 	 	 	 	 	liability company, its Manager
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	By:____________________
	 

	 	 	 	 	 	Name: ________________
	 

	 	 	 	 	 	Title: ________________

STATE OF_____________________________

COUNTY OF___________________________

     The foregoing instrument was acknowledged before me this _____ day of ______________________,
2011, by ____________________, as _______________ of Resource Management Service, LLC, an Alabama
limited liability company, the Manager of Vulcan Timberlands LLC, a Delaware limited liability
company, on behalf of said company. He/She o is personally known to me or o has produced
______________________ as identification.

	 	 	 

	 

	 	NOTARY PUBLIC:
	 
	 	 
	 

	 	Sign:___________________________________________________
	 

	 	Print:___________________________________________________
	 

	 	My Commission Expires:_________________________________
	 
	 	 
	 

	 	[NOTARY SEAL]

Exhibit C to Thinnings Supply Agreementexv10w2

Exhibit 10.2

SEVENTH AMENDMENT TO CREDIT AGREEMENT

          THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made the 31st day of March,
2011, 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, the LENDERS listed on the signature pages hereof and BRANCH BANKING AND TRUST COMPANY,
as Administrative Agent.

R E C I T A L S:

          The Borrower, the Initial Guarantors, the Administrative Agent and the Lenders 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, a Second Amendment to Credit Agreement dated February 20, 2009, a
Third Amendment to Credit Agreement dated May 1, 2009, a Fourth Amendment to Credit Agreement dated
October 15, 2009, a Fifth Amendment to Credit Agreement dated December 23, 2009 and a Sixth
Amendment to Credit Agreement dated January 12, 2011 (referred to herein, as so amended, 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 the Guarantors have requested the Administrative Agent and the Lenders to (i)
waive certain provisions of the Credit Agreement to allow the Timber Transactions (defined below),
(ii) add the definitions of “Cash Liquidity,” “Development Property” and “Revised Property
Schedule”, (iii) amend the definition of “Identified Mortgaged Property,” (iv) add new subsection
(o) to Section 5.13 of the Credit Agreement and (v) amend Section 4.34, Section 5.01(c), Section
5.13(h), Section 5.16, Section 5.31 and Section 5.38(a)(i) of the Credit Agreement. The Lenders,
the Administrative Agent, the 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 Guarantors, the Administrative Agent and the Lenders, intending to
be legally bound hereby, agree as follows:

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

          SECTION 2. Waiver. The Borrower has advised the Lenders that it and/or one or more of
the Guarantors may from time to time enter into one or more purchase and sale agreements and/or
timber deeds or comparable agreements pursuant to which the purchaser(s) would be granted the right
to maintain, manage, store, cut, harvest and remove timber from no
more than 100,000 acres of the Properties in the aggregate (each a “Timber Transaction” and

 

 

collectively the “Timber Transactions”), subject to the following terms, conditions and
limitations: (i) the term of each such Timber Transaction shall not exceed twenty years from the
effective date of such Timber Transaction; (ii) any portion of the Property subject to a Timber
Transaction shall be released from any and all timber rights granted in such Timber Transaction
upon the completion or abandonment of the harvesting of timber from such portion of the Property;
(iii) all risk of loss with respect to the timber shall pass to the purchaser at the closing of the
Timber Transaction; (iv) the purchaser shall be required to conduct its activities on the Property
in accordance with the then-current Silviculture Best Management Practices (“BMPs”) for harvesting
timber, fertilization and other silvicultural activities, as promulgated or amended from time to
time by the Florida Department of Agriculture and Consumer Services; and (v) the purchaser shall be
prohibited, without the Borrower’s prior written consent, from generating, handling, manufacturing,
treating, storing or using any hazardous or toxic substances (as defined by applicable federal or
state laws and regulations) during its operations on the Property, other than products, including
fuel and oil, used in commercially reasonable quantities, for operating and maintaining equipment
necessary to conduct harvesting operations and silvicultural activities. In connection with any
such Timber Transaction, and subject to compliance by the Borrower or applicable Guarantor with the
foregoing terms, conditions and limitations, the Administrative Agent and Lenders hereby waive
compliance by the Borrower with, and waive any Default or Event of Default that may arise in
connection with, the covenants contained within Sections 5.13 and 5.16 of the Credit Agreement
solely to the extent such covenants are related to the consummation of any Timber Transaction.
This waiver does not operate as a waiver of any Credit Agreement provision other than as explicitly
set forth above with respect to Sections 5.13 and 5.16 and does not operate with regard to any
other matter other than in connection with the Timber Transactions.

     Each Lender has been informed by the Administrative Agent or by the Borrower of the waiver set
forth in this Section 2 and has been afforded an opportunity to consider the same. Each Lender has
been supplied by the Borrower or the Administrative Agent, to the extent requested, with sufficient
information to enable such Lender to make an informed decision with respect to the waiver set forth
in this Section 2.

     The Borrower and the Guarantors acknowledge that, except as explicitly waived in this Section
2, all of the rights, powers and remedies vested in the Lenders under the Credit Agreement continue
to exist, and that the Lenders remain free to exercise any of their rights, powers and remedies
under the Credit Agreement at any time subject only to the terms, conditions and limitations set
forth in the Credit Agreement and under Applicable Laws.

     The waiver set forth in this Section 2 is limited to the matters set forth herein. Except as
set forth in this Section 2, no past, present or future failure of the Lenders to exercise any
rights, powers or remedies under the Credit Agreement or any other Loan Document shall operate as
or be construed to be a waiver of (i) any right, power or remedy of the Lenders or (ii) any term,
provision, representation, warranty or covenant contained in the Credit Agreement or any other Loan
Document. The Lenders may, subject to the waiver set forth in this Section 2 and any limitations
contained in the Credit Agreement and the other Loan Documents and Applicable
Laws, exercise any such right, power or remedy at any time. Furthermore, nothing in this
Section 2 shall be deemed to limit, estop or otherwise restrict or prohibit the Lenders from

2

 

exercising any of their rights or remedies under the Credit Agreement, any other Loan Document, or
under Applicable Laws or principles of equity with respect to the occurrence of any Default or
Event of Default other than those expressly waived in this Section 2, all of which rights and
remedies are specifically hereby reserved. The waiver set forth in this Section 2 shall not
constitute a course of dealing or a waiver of the Lenders’ right to withhold their consent for any
similar request in the future.

          SECTION 3. Amendment. The Credit Agreement is hereby amended as set forth in this
Section 3.

          SECTION 3.01. Amendment to Section 1.01. The definition of “Cash Liquidity” shall be
added to Section 1.01 of the Credit Agreement in proper alphabetical order as follows:

          “Cash Liquidity” means at any time the sum of: (1) the aggregate cash of the
Borrower and its Consolidated Subsidiaries that are Guarantors and (2) the aggregate
Cash Equivalents of the Borrower and its Consolidated Subsidiaries that are
Guarantors.

          SECTION 3.02. Amendment to Section 1.01. The definition of “Development Property”
shall be added to Section 1.01 of the Credit Agreement in proper alphabetical order as follows:

          “Development Property” shall mean:

          (1) any Property owned by St. Joe Timberland currently under development as a
residential, commercial or mixed use community, including all lots and parcels held
for sale, all common elements or dedicated infrastructure improvements related
thereto and all future phases of such development as shown on master plans, maps and
site plans of Borrower and/or St. Joe Timberland dated on or before the date hereof;
and

          (2) Any Property owned by St. Joe Timberland as to which Borrower and/or St.
Joe Timberland commences pre-development as a residential, commercial or mixed use
community. Pre-development of a parcel of Property shall be deemed to have
commenced when:

               (a) Borrower and/or St. Joe Timberland has filed an application for a
development order with respect to such Property (including any application
for a development permit, building permit, zoning permit, plat approval,
certification, variance, application for development approval pursuant to
Chapter 380, Florida Statutes, application for an amendment to the
comprehensive plan for any municipality or county in Florida, or other
action, in each case having the effect of permitting residential, commercial
or mixed used development of
such Property, including all other development customarily associated
therewith); and

3

 

               (b) Borrower has given Administrative Agent and Lenders written notice
of the reclassification of such Property as Development Property.

Notwithstanding the foregoing, any Property which is classified as Development
Property under this subparagraph (2) shall cease to constitute Development Property
if the application for a development order is denied and Borrower and/or St. Joe
Timberland has unsuccessfully appealed such denial and exhausted its appeal rights
or such appeal rights have otherwise expired.

          The total Development Property shall not exceed 24,000 acres at any time. As of the date
hereof, the Development Properties consist of (i) Landings at Wetappo, (ii) RiverCamps on Crooked
Creek, (iii) RiverSide at Chipola, (iv) WaterSound, (v) WindMark Beach and (vi) Phase I and Phase
II of VentureCrossings Enterprise Centre at West Bay, which collectively constitute approximately
6,569 acres.

          SECTION 3.03. Amendment to Section 1.01. The definition of “Identified Mortgaged
Property” in Section 1.01 of the Credit Agreement is amended and restated to read in its entirety
as follows:

          “Identified Mortgaged Property” means Properties described in Schedule 1.01 —
Identified Mortgaged Property (as such schedule is amended from time to time
pursuant to the terms of this Agreement), which Properties shall consist of not
fewer than 200,000 acres in the aggregate.

          SECTION 3.04. Amendment to Section 1.01. The definition of “Revised Property
Schedule” shall be added to Section 1.01 of the Credit Agreement in proper alphabetical order as
follows:

          “Revised Property Schedule” shall have the meaning set forth in Section 5.31.

          SECTION 3.05. Amendment to Section 4.34. Section 4.34 of the Credit Agreement is amended and
restated to read in its entirety as follows:

          SECTION 4.34. Mortgaged Properties. Schedule 1.01, as amended by the
most recent Compliance Certificate or Revised Property Schedule, if any, delivered
by the Borrower to the Administrative Agent, is a correct and complete list of all
Identified Mortgage Properties. All Mortgaged Properties are owned in fee simple by
St. Joe Timberland. The representations and warranties of St. Joe Timberland set
forth in Sections 6(e), 6(g), 6(j) and 6(k) of the Security Agreement in the form
attached hereto as Exhibit H and in Sections 2.04 and 8.02 of the Mortgage in the
form attached hereto as Exhibit J,
with respect to each Property owned by St. Joe Timberland, are true and correct
in all material respects.

4

 

          SECTION 3.06 Amendment to Section 5.01. Section 5.01(c) of the Credit Agreement is
amended and restated to read in its entirety as follows:

     (c) simultaneously with the delivery of each set of financial statements
referred to in clauses (a) and (b) above, a certificate, substantially in the form
of Exhibit M and with compliance calculations in form and content satisfactory to
the Administrative Agent (a “Compliance Certificate”), of the chief financial
officer or authorized officers of the Borrower (i) setting forth in reasonable
detail the calculations required to establish whether the Loan Parties were in
compliance with the requirements of Sections 5.03, 5.04, 5.05, 5.06, 5.07, 5.08,
5.09, 5.10, 5.11, 5.12. 5.30, 5.31 (as to Cash Liquidity) and 5.36 on the date of
such financial statements, (ii) setting forth the identities of the respective
Subsidiaries on the date of such financial statements, (iii) setting forth a list of
all Properties acquired and sold or otherwise transferred by St. Joe Timberland
since the date of the delivery of the previous Compliance Certificate, such list to
identify such Property’s location, indicating whether such Property is an Identified
Mortgaged Property and certifying that all documents, information and other
materials required to be delivered pursuant to Section 5.31 have been previously
delivered or are being delivered with respect to any such acquired Property which is
Identified Mortgaged Property, (iv) setting forth the ratio of Total Indebtedness to
Total Asset Value as of the end of the applicable fiscal period and (v) stating
whether any Default exists on the date of such certificate and, if any Default then
exists, setting forth the details thereof and the action which the Loan Parties are
taking or propose to take with respect thereto;

          SECTION 3.07 Amendment to Section 5.13. Section 5.13(h) of the Credit Agreement is
amended and restated to read in its entirety as follows:

          (h) (1) that certain Pulpwood Supply Agreement dated as of November 1, 2010,
between St. Joe Timberland and Smurfit-Stone Container Corporation; and (2) timber
or fiber supply agreements which when combined with all other timber or fiber supply
agreements entered into after the date of this Agreement encumber less than 50,000
acres in the aggregate unless approved by the Administrative Agent (which consent
shall not be unreasonably withheld);

          SECTION 3.08. Amendment to Section 5.13. New subsection (o) is added to Section 5.13
of the Credit Agreement, as follows:

          (o) any conservation easement, as defined in Section 704.06, Florida Statutes,
or any land bank established for wetland and/or carbon mitigation credits.

          SECTION 3.09. Amendment to Section 5.16. That portion of Section 5.16 of the Credit
Agreement starting with subsection (e) and continuing through the end of Section 5.16 is amended
and restated to read in its entirety as follows:

5

 

          (e) the foregoing limitation on the sale, lease or other transfer of assets shall not
prohibit a transfer of assets (in a single transaction or in a series of related
transactions) unless the assets to be so transferred shall cause St. Joe Timberland to hold
less than 250,000 acres of Land as fee simple owner (excluding any Encumbered Land (as
defined in Section 5.13(l)), any parcels subject to any outstanding timber offering, sale,
conveyance, deed or encumbrance, any Development Property, and any parcels subject to
conservation easements or land bank agreements described in Section 5.13(o)); provided that,
notwithstanding any of the foregoing, after a Trigger Event has occurred, St. Joe Timberland
shall not sell, lease or otherwise transfer, or enter into any agreement or arrangement to
sell, lease or otherwise transfer, any of its Properties or other assets (other than sales
of Development Properties in the ordinary course of business) without the prior written
consent of the Administrative Agent (in its sole discretion). Within ten (10) business days
after the sale of any Development Property in the ordinary course of business following the
occurrence of a Trigger Event, the Borrower shall prepay the Revolver Advances in an amount
equal to all after-tax cash proceeds (net of reasonable and customary out-of-pocket fees and
expenses, including market rate brokerage fees) from the sale of such Development Property.

          SECTION 3.10. Amendment to Section 5.31. Section 5.31 of the Credit Agreement is
amended and restated to read in its entirety as follows:

           SECTION 5.31 Maintenance and Required Substitution of Identified
Mortgaged Property. St. Joe Timberland at all times (a) shall maintain fee
simple ownership of not fewer than 250,000 acres of Land (excluding any Encumbered
Land (as defined in Section 5.13(l)), any parcels subject to any outstanding timber
offering, sale, conveyance, deed or encumbrance, any Development Property, and any
parcels subject to conservation easements or land bank agreements described in
Section 5.13(o)), and (b) shall have set forth on Schedule 1.01 a listing and legal
descriptions of Property it owns in fee simple that in the aggregate consists of at
least 200,000 acres. No later than sixty (60) days after the earlier of (i) (A) a
request for a Revolver Advance or (B) a drawing under a Letter of Credit which is
not reimbursed within three (3) business days following demand for reimbursement by
the Administrative Agent, (ii) a Trigger Event or (iii) the date on which the
Borrower fails to maintain Cash Liquidity of at least $30,000,000, the Borrower
shall have satisfied the following requirements: (x) delivery to the Administrative
Agent of a replacement Schedule 1.01 providing a listing and legal descriptions for
Properties the Borrower owns in fee simple that in the aggregate consist of at least
200,000 acres (excluding any Encumbered Land (as defined in Section 5.13(l)), any
parcels subject to any outstanding timber offering, sale, conveyance, deed or
encumbrance, any Development Property, and any parcels subject to conservation
easements or land
bank agreements described in Section 5.13(o)) which are legally sufficient to attach
to the Mortgages (the “Revised Property Schedule”) and (y) receipt by the
Administrative Agent of all items described in Section 3.01(m) with respect to the
Properties identified on the Revised Property Schedule, all reasonably satisfactory

6

 

to the Administrative Agent. Failure to deliver the Revised Property Schedule to
the Administrative Agent as required herein shall constitute an Event of Default.

          SECTION 3.11. Amendment to Section 5.38. Section 5.38(a)(i) of the Credit Agreement
is amended and restated to read in its entirety as follows:

(i) execute and deliver to the Administrative Agent on behalf of the Secured Parties
the Timberland Collateral Documents (with such modifications thereof as may be
reasonably required by the Administrative Agent), which shall be effective to create
in favor of the Administrative Agent on behalf of the Secured Parties a first
priority pledge of and/or a lien on substantially all of the assets of St. Joe
Timberland (other than (A) the Encumbered Land, but only to the extent the
recordation of the Timberland Collateral Documents would result in an event of
default under the existing mortgage or deed of trust encumbering the Encumbered
Land, and (B) the Development Properties) subject to such exceptions as are
reasonably satisfactory to the Administrative Agent

          SECTION 4. Reaffirmation. To induce the Administrative Agent and the Lenders to
enter into this Amendment, the Borrower hereby (a) restates and renews each and every
representation and warranty heretofore made by it under, or in connection with the execution and
delivery of, the Credit Agreement and the other Loan Documents (except to the extent any such
representation or warranty is expressly stated to have been made as of a specific date, in which
case such representation or warranty is true and correct as of such date), and (b) restates,
ratifies and reaffirms each and every term and condition set forth in the Credit Agreement and in
the Loan Documents.

          SECTION 5. Consent by the Guarantors. The Guarantors consent to the foregoing
amendments. Each Guarantor (i) acknowledges and consents to all of the terms and conditions of
this Amendment, (ii) affirms all of its obligations under the Loan Documents, (iii) agrees that
this Amendment and all documents executed in connection herewith do not operate to reduce or
discharge its obligations under the Credit Agreement or the other Loan Documents and (iv) hereby
confirms and agrees that its guaranty under the Credit Agreement shall continue and remain in full
force and effect after giving effect to this Amendment.

          SECTION 6. 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 the
Guarantors and other evidence as the Administrative Agent may reasonably request, respecting the
authorization, execution and delivery of this Amendment;

7

 

          (c) the fact that the representations and warranties of the Borrower and the Guarantors
contained in Section 8 of this Amendment shall be true on and as of the date hereof; and

          (d) All other documents and legal matters in connection with the transactions contemplated by
this Amendment shall be reasonably satisfactory in form and substance to the Administrative Agent
and its counsel.

          SECTION 7. No Other Amendment. Except for the amendments set forth above and those
contained in the First Amendment to Credit Agreement dated October 30, 2008 (“First Amendment”),
the Second Amendment to Credit Agreement dated February 20, 2009 (“Second Amendment”), the Third
Amendment to Credit Agreement dated May 1, 2009 (“Third Amendment”), the Fourth Amendment to Credit
Agreement dated October 15, 2009 (“Fourth Amendment”), the Fifth Amendment to Credit Agreement
dated December 23, 2009 (“Fifth Amendment”) and the Sixth Amendment to Credit Agreement dated
January 12, 2011 (the “Sixth Amendment”), the text of the Credit Agreement shall remain unchanged
and in full force and effect. On and after the Seventh Amendment Effective Date, all references to
the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as
amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment,
the Fifth Amendment, the Sixth Amendment and this Amendment. This Amendment is not intended to
effect, nor shall it be construed as, a novation. The Credit Agreement, the First Amendment, the
Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth
Amendment 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 the
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 the Guarantors hereby
expressly agree that the Credit Agreement, as amended, and the other Loan Documents are in full
force and effect.

          SECTION 8. Representations and Warranties. The Borrower and the 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 the 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 the Guarantors and constitutes the legal,

8

 

valid and binding
obligations of the Borrower and the Guarantors enforceable against them in accordance with its
terms.

          (d) The execution and delivery of this Amendment and the performance by the Borrower and the
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
Guarantor, nor be in contravention of or in conflict with the articles of incorporation, bylaws or
other organizational documents of the Borrower, or any Guarantor that is a corporation, the
articles of organization or operating agreement of any 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 Guarantor is party or by which the assets
or properties of the Borrower and the Guarantors are or may become bound.

          SECTION 9. 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 10. Governing Law. This Amendment shall be construed in accordance with and
governed by the laws of the State of North Carolina.

          SECTION 11. Effective Date. This Amendment shall be effective as of March 31, 2011
(the “Seventh Amendment Effective Date”).

          SECTION 12. Expenses. The Borrower and the Guarantors agree to pay all reasonable
costs and expenses of the Administrative Agent in connection with the preparation, execution and
delivery of this Amendment, including without limitation the reasonable fees and expenses of the
Administrative Agent’s legal counsel.

          SECTION 13. Further Assurances. The Borrower and the Guarantors agree to promptly
take such action, upon the request of the Administrative Agent, as is necessary to carry out the
intent of this Amendment.

          SECTION 14. Amendment Fee. The Borrower and the Guarantors shall pay to the
Administrative Agent for the ratable account of each approving Lender an amendment fee in an amount
equal to the product of: (i) the amount of such Lender’s Revolver Commitment, times (ii) 0.05%.

          SECTION 15. Waiver of Claims or Defenses. The Borrower and the Guarantors represent
that none of them has any set-offs, defenses, recoupments, offsets, counterclaims or
other causes of action against the Administrative Agent or the Lenders relating to the Loan
Documents and the indebtedness evidenced and secured thereby and agree that, if any such set-off,
defense, counterclaim, recoupment or offset otherwise exists on the date of this Amendment, each
such defense, counterclaim, recoupment, offset or cause of action is hereby waived and released
forever.

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          SECTION 16. Release of Claims. For and in consideration of the obligations set forth
herein and intending to be legally bound hereby, the Borrower and the Guarantors do remise, release
and forever discharge the Administrative Agent and the Lenders, and their respective successors and
assigns, of and from and all manner of actions, causes of actions, suits, debts, dues, sums of
money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents, executions, claims, and
demands of whatsoever nature, in law, in equity or in admiralty, direct or indirect, known or
unknown, matured or not matured, including for contribution and/or indemnity, that the Borrower or
any Guarantor ever had or now has, including, without limitation, those with respect to any and all
matters alleged or which could have been alleged, with respect to the Loan Documents or the making
or administration of any loans or advances up to and including the date of this Amendment. The
general release hereby entered into and executed by Borrower and the Guarantors is intended by
Borrower and the Guarantors to be final, complete and total as to all matters that have arisen or
occurred up to and including the date of this Amendment.

          SECTION 17. Loan Document. This Amendment is a Loan Document and is subject to all
provisions of the Credit Agreement applicable to Loan Documents, all of which are incorporated in
this Amendment by reference the same as if set forth in this Amendment verbatim.

          SECTION 18. Severability. Any provision of this Amendment that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating the remainder of such provision or the
remaining provisions hereof or thereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

          SECTION 19. Entire Agreement. This Amendment contains the entire and exclusive
agreement of the parties hereto with reference to the matters discussed herein. This Amendment
supersedes all prior drafts and communications with respect hereto.

          SECTION 20. Notices. All notices, requests and other communications to any party to
the Loan Documents, as amended hereby, shall be given in accordance with the terms of Section 9.01
of the Credit Agreement.

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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/ William S. McCalmont
 	 
	 	Name:  	William S. McCalmont 	 
	 	Title:  	Executive Vice President and CFO

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

 	 
	 	By:  	/s/ William S. McCalmont
 	 
	 	Name:  	William S. McCalmont 	 
	 	Title:  	Executive Vice President and CFO

[CORPORATE SEAL] 	 
	 
	 	ST. JOE FINANCE COMPANY

 	 
	 	By:  	/s/ William S. McCalmont
 	 
	 	Name:  	William S. McCalmont 	 
	 	Title:  	President

[CORPORATE SEAL] 	 
	 

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	 	BRANCH BANKING AND TRUST COMPANY,

as Administrative Agent and as a Lender

 	 
	 	By:  	/s/ Matthew W. Rush
 	(SEAL) 
	 	Name:  	Matthew W. Rush 	 
	 	Title:  	Senior Vice President 	 
	 

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	 	DEUTSCHE BANK TRUST COMPANY AMERICAS

 	 
	 	By:  	/s/ J.T. Johnston Coe
 	(SEAL) 
	 	Name:  	J. T. Johnston Coe 	 
	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                   /s/ Susan LeFevre
 	(SEAL) 
	 	Name:  	Susan LeFevre 	 
	 	Title:  	Managing Director 	 
	 

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