Document:

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                                                                   Exhibit 10.24

                               THE ST. JOE COMPANY

                            2001 STOCK INCENTIVE PLAN

                     (AS ADOPTED EFFECTIVE AUGUST 21, 2001)

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                      <C>
ARTICLE 1. INTRODUCTION ...........................................................      1

ARTICLE 2. DEFINITIONS ............................................................      1

ARTICLE 3. ADMINISTRATION .........................................................      4
   3.1 Committee Composition ......................................................      4
   3.2 Committee Responsibilities and Authority ...................................      4

ARTICLE 4. SHARES AVAILABLE FOR GRANTS ............................................      5
   4.1 Basic Limitation ...........................................................      5
   4.2 Additional Shares ..........................................................      5

ARTICLES. ELIGIBILITY .............................................................      5
   5.1 Nonstatutory Stock Options, Stock Appreciation Rights and Restricted Shares.      5
   5.2 Incentive Stock Options ....................................................      5
   5.3 Prospective Employees ......................................................      5

ARTICLE 6. OPTIONS ................................................................      5
   6.1 Stock Option Agreement .....................................................      5
   6.2 Number of Shares ...........................................................      5
   6.3 Exercise Price .............................................................      6
   6.4 Exercisability and Term ....................................................      6
   6.5 Effect of Change in Control ................................................      6
   6.6 Modification or Assumption of Options ......................................      6
   6.7 Buyout Provisions, .........................................................      6

ARTICLE 7. PAYMENT FOR OPTION SHARES ..............................................      6
   7.1 General Rule ...............................................................      6
   7.2 Surrender of Stock .........................................................      7
   7.3 Exercise/Sale ..............................................................      7
   7.4 Exercise/Pledge ............................................................      7
   7.5. Promissory Note ...........................................................      7
   7.6 Other Forms of Payment .....................................................      7

ARTICLE 8. RESTRICTED SHARES ......................................................      7
   8.1 Time, Amount and Form of Awards ............................................      7
   8.2 Payment for Awards .........................................................      7
   8.3 Vesting Conditions .........................................................      7
   8.4 Voting and Dividend Rights .................................................      8

ARTICLE 9. STOCK APPRECIATION RIGHTS ..............................................      8
</TABLE>
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<TABLE>
<S>                                                                                     <C>
   9.1 Time, Amount and Form of Awards.............................................      8
   9.2 Rights to Receive...........................................................      8
   9.3 Conditions..................................................................      8
   9.4 Number of Stock Appreciation Rights.........................................      8
   9.5 Buyout Provisions...........................................................      9

ARTICLE 10. PROTECTION AGAINST DILUTION............................................      9
   10.1 Adjustments................................................................      9
   10.2 Dissolution or Liquidation.................................................      9
   10.3 Reorganization.............................................................      9

ARTICLE 11. LIMITATION ON RIGHTS...................................................     10
   11.1 Retention Rights...........................................................     10
   11.2 Stockholders' Rights.......................................................     10
   11.3 Regulatory Requirements....................................................     10
   11.4 Transfer...................................................................     10

ARTICLE 12. WITHHOLDING TAXES......................................................     10
   12.1 General....................................................................     10
   12.2 Share Withholding..........................................................     11

ARTICLE 13. FUTURE OF THE PLAN.....................................................     11
   13.1 Term of the Plan...........................................................     11
   13.2 Amendment or Termination...................................................     11

ARTICLE 14. EXECUTION..............................................................     11

SCHEDULE A ........................................................................     12
</TABLE>

                                       ii
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                               THE ST. JOE COMPANY

                            2001 STOCK INCENTIVE PLAN

      ARTICLE 1. INTRODUCTION.

            The Plan was adopted by the Board of Directors effective August 21,
2001. The purpose of the Plan is to promote the long-term success of the Company
and the creation of stockholder value by (a) encouraging Employees and Outside
Directors to focus on critical long-range objectives, (b) encouraging the
attraction and retention of Employees and Outside Directors with exceptional
qualifications and (c) linking Employees and Outside Directors directly to
stockholder interests through increased stock ownership. The Plan seeks to
achieve this purpose by providing for Awards in the form of Restricted Shares,
Options or Stock Appreciation Rights.

            The Plan shall be governed by, and construed in accordance with, the
laws of the State of Florida (excluding their choice-of-law provisions).

            Actual awards of Restricted Shares, Options, or Stock Appreciation
Rights under this Plan shall be made and documented in each case with a separate
Stock Option Agreement, Stock Appreciation Rights Agreement or Restricted Stock
Agreement, as set forth in this Plan. Each of these Stock Option Agreements and
Restricted Stock Agreements may differ one from the other. The purpose of
providing separate Stock Option Agreements, Stock Appreciation Rights Agreements
and Restricted Stock Agreements is to allow the Compensation Committee the
broadest possible flexibility in tailoring specific grants for specific
individuals, consistent with this plan.

      ARTICLE 2. DEFINITIONS.

            2.1. "AFFILIATE" means any entity other than a Subsidiary, if the
Company and/or one or more Subsidiaries own not less than 50% of such entity.

            2.2. "AWARD" means any award of an Option, Stock Appreciation Right
or a Restricted Share under the Plan.

            2.3. "BASE VALUE" means the Fair Market Value of a Common Share
underlying a Stock Appreciation Right, determined as of the date of grant.

            2.4. "BOARD" means the Company's Board of Directors, as constituted
from time to time.

            2.5 "CAUSE" means gross negligence, misconduct, nonfeasance,
material breach of employment agreement, conviction following final disposition
of any available appeal of a felony, or pleading guilty or no contest to a
felony.
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            2.6 "CHANGE IN CONTROL" means that:

                  (a) 25% or more of the outstanding voting stock of the Company
is acquired by any person or group other than the Alfred L. duPont Testamentary
Trust and the Nemours Foundation, except that this Subsection (a) shall not
apply as long as the Alfred I. duPont Testamentary Trust or the Nemours
Foundation, or any combination of both, owns more voting stock than such person
or group; or

                  (b) Stockholders of the Company other than the Alfred I,
duPont Testamentary Trust and the Nemours Foundation vote in a contested
election for directors of the Company and through exercise of their votes cause
the replacement of 50% or more of the Company's directors (the mere change of
50% or more of the members of the Board does not cause a Change in Control
unless it occurs as a result of a contested election); or

                  (c) The Company is a party to a merger or similar transaction
as a result of which the Company's stockholders own 50% or less of the surviving
entity's voting securities after such merger or similar transaction.

            No Change in Control occurs in any event as long as the combined
ownership of the Alfred I. duPont Testamentary Trust and the Nemours Foundation
exceeds 50% of the outstanding voting stock of the Company.

            A transaction shall not constitute a Change in Control if its sole
purpose is to change the state of the Company's incorporation or to create a
holding company that will be owned in substantially the same proportions by the
persons who held the Company's securities immediately before such transaction.

            If a Participant has a severance agreement or an employment
agreement with the Company, the definition of change in control in that
severance or employment agreement, if any, shall be the operative definition for
the Plan for that Participant.

            2.7. "CODE" means the Internal Revenue Code of 1986, as amended.

            2.8. "COMMITTEE" means the Compensation Committee of the Board, as
further described in Article 3.

            2.9. "COMMON SHARE" means one share of the common stock of the
Company.

            2.10. "COMPANY" means The St. Joe Company, a Florida company.

            2.11. "EMPLOYEE" means a common-law employee of the Company, a
Parent, a Subsidiary or an Affiliate, or a leased employee (within the meaning
of section 414(n) of the Code) of the Company, a Parent, a Subsidiary or an
Affiliate.

            2.12. "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

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            2.13. "EXERCISE PRICE" means the amount for which one Common Share
may be purchased upon exercise of such Option, as specified in the applicable
Stock Option Agreement.

            2.14. "FAIR MARKET VALUE" means the closing price of Common Shares,
as stated in The New York Stock Exchange Composite Transactions Report and
reported in The Wall Street Journal. If a closing price of Common Shares is not
stated in The New York Stock Exchange Composite Transactions Report, the Fair
Market Value of Common Shares shall be determined by the Committee in good faith
on such basis as it deems appropriate. The determination of Fair Market Value by
the Committee shall be conclusive and binding on all persons.

            2.15. "ISO" means an incentive stock option described in section
422(b) of the Code.

            2.16. "NSO" means a stock option not described in section 422 or 423
of the Code.

            2.17. "OPTION" means an ISO or NSO granted under the Plan and
entitling the holder to purchase Common Shares.

            2.18. "OPTIONEE" means an individual or estate who holds an Option.

            2.19. "OUTSIDE DIRECTOR" means a member of the Board who is not an
Employee. Service as an Outside Director shall be considered employment for all
purposes of the Plan other than Section 5.2.

            2.20 "PARENT" means any company (other than the Company) in an
unbroken chain of companies ending with the Company, if each of the companies
other than the Company owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other companies in such
chain. A company that attains the status of a Parent on a date after the
adoption of the Plan shall be considered a Parent commencing as of such date.

            2.21 "PARTICIPANT" means an individual or estate who holds an Award.

            2.22. "PLAN" means this The St. Joe Company 2001 Stock Incentive
Plan, as amended from time to time.

            2.23. "RESTRICTED SHARE" means a Common Share awarded under the
Plan.

            2.24. "STOCK APPRECIATION RIGHT" means a grant under the Plan which
entitles a recipient to receive in cash an amount equal to the difference
between the Fair Market Value of a Common Share on the date of grant and the
Fair Market Value of a Common Share on the date the Stock Appreciation Right is
exercised.

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            2.25. "STOCK APPRECIATION RIGHTS AGREEMENT" means the agreement
between the Company and a Participant that contains the terms, conditions and
restrictions pertaining to his or her Stock Appreciation Right.

            2.26. "STOCK AWARD AGREEMENT" means the agreement between the
Company and the recipient of a Restricted Share that contains the terms,
conditions and restrictions pertaining to such Restricted Share.

            2.27. "STOCK OPTION AGREEMENT" means the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions
pertaining to his or her Option.

            2.28. "SUBSIDIARY" means any company (other than the Company) in an
unbroken chain of companies beginning with the Company, if each of the companies
other than the last company in the unbroken chain owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other companies in such chain. A company that attains the status of a Subsidiary
on a date after the adoption of the Plan shall be considered a Subsidiary
commencing as of such date.

      ARTICLE 3. ADMINISTRATION.

            3.1. COMMITTEE COMPOSITION. The Plan shall be administered by the
Committee. The Committee shall consist exclusively of two or more Outside
Directors of the Company, who shall be appointed by the Board. In addition, the
composition of the Committee shall satisfy:

                  (a) Such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to
qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act; and

                  (b) Such requirements as the Internal Revenue Service may
establish for Outside Directors acting under plans intended to qualify for
exemption under section 162(m)(4)(C) of the Code.

            3.2. COMMITTEE RESPONSIBILITIES AND AUTHORITY. The Committee shall
(a) select the Employees and Outside Directors who are to receive Awards under
the Plan, (b) determine the type, number, vesting requirements and other
features and conditions of such Awards, (c) interpret the Plan and agreements
entered into pursuant to the Plan and (d) make all other decisions relating to
the operation of the Plan. The Committee may adopt such rules or guidelines as
it deems appropriate to implement the Plan. The Committee's determinations under
the Plan shall be final and binding on all persons. The Committee has authority
to grant Restricted Shares, Options, and Stock Appreciation Rights to Company
Employees and Outside Directors.

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      ARTICLE 4. SHARES AVAILABLE FOR GRANTS.

            4.1. BASIC LIMITATION. Common Shares issued pursuant to the Plan may
be authorized but unissued shares or treasury shares. The aggregate number of
Options, Restricted Shares and Stock Appreciation Rights awarded under the Plan
shall not exceed 3,000,000. The limitations of this Section 4.1 shall be subject
to adjustment pursuant to Article 10.

            4.2. ADDITIONAL SHARES. If Options or Stock Appreciation Rights are
forfeited or terminate for any reason before being exercised or if Restricted
Shares are forfeited or terminate for any reason before becoming vested, then
the corresponding Common Shares shall again become available for the grant of
Awards under the Plan.

      ARTICLE 5. ELIGIBILITY.

            5.1. NONSTATUTORY STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND
RESTRICTED SHARES. Only Employees and Outside Directors shall be eligible for
the grant of NSOs, Stock Appreciation Rights and Restricted Shares.

            5.2. INCENTIVE STOCK OPTIONS. Only Employees who are common-law
employees of the Company, a Parent or a Subsidiary shall be eligible for the
grant of ISOs. In addition, an Employee who owns more than 10% of the total
combined voting power of all classes of outstanding stock of the Company or any
of its Parents or Subsidiaries shall not be eligible for the grant of an ISO
unless the requirements set forth in section 422(c)(5) of the Code are
satisfied.

            5.3. PROSPECTIVE EMPLOYEES. For purposes of this Article 5, the term
"Employee" shall include a prospective employee who accepts a written offer of
employment from the Company, a Parent or a Subsidiary. If an Award is offered to
a prospective employee, such Award shall be deemed "granted" for all purposes
under the Plan (including, without limitation, Section 6.3) as of the date
specified in the Stock Option Agreement, Stock Appreciation Rights Agreement, or
Restricted Stock Agreement, but in no event shall the grant date be earlier than
the later of the date his or her service as an Employee commences or the date
when the Board approves the grant.

      ARTICLE 6. OPTIONS.

            6.1 STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are consistent with the Plan. The Stock
Option Agreement shall specify whether the Option is an ISO or an NSO. The
provisions of the various Stock Option Agreements entered into under the Plan
need not be identical.

            6.2. NUMBER OF SHARES. Each Stock Option Agreement shall specify the
number of Common Shares subject to the Option and shall provide for the
adjustment of such number in accordance with Article 10. Options granted to any
Optionee in a single fiscal year of

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the Company shall not cover more than 500,000 Common Shares, except that Options
granted to a new Employee in the fiscal year of the Company in which his or her
service as an Employee first commences shall not cover more than 750,000 Common
Shares. The limitations set forth in the preceding sentence shall be subject to
adjustment in accordance with Article 10.

            6.3. EXERCISE PRICE. Each Stock Option Agreement shall specify the
Exercise Price. Except as provided for in Article 9.5, the Exercise Price shall
in no event be less than 100% of the Fair Market Value of a Common Share at the
time the Option is granted.

            6.4. EXERCISABILITY AND TERM. Each Stock Option Agreement shall
specify the date or event when all or any installment of the Option is to become
exercisable. The Stock Option Agreement shall also specify the term of the
Option provided, that the term of an Option shall in no event exceed 10 years
from the date of grant. A Stock Option Agreement may provide for accelerated
exercisability in the event of the Optionee's death, disability or retirement or
other events and may provide for expiration prior to the end of its term in the
event of the termination of the Optionee's service. Without limiting the
generality of the foregoing, a Stock Option Agreement may provide that vesting
shall occur upon certain conditions including that the performance of the
Company or a business unit of the Company (as determined by the Company's
independent auditors) for a specified period of one or more years equal or
exceed a target determined in advance by the Committee.

            63. EFFECT OF CHANGE IN CONTROL. The Committee may determine, at the
time of granting an Option or thereafter, that all or part of such Option shall
become exercisable as to Common Shares subject to such Option in the event that
a Change in Control occurs with respect to the Company.

            6.6. MODIFICATION OR ASSUMPTION OF OPTIONS. Within the limitations
of the Plan, the Committee may modify, extend or assume outstanding Options or
may accept the cancellation of outstanding Options (whether granted by the
Company or by another issuer) in return for the grant of new Options for the
same or a different number of shares and at the same or a different exercise
price. The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, alter or impair his or her rights or
obligations under such Option.

            6.7. BUYOUT PROVISIONS. The Committee may at any time (a) offer to
buyout for a payment in cash or cash equivalents an Option previously granted or
(b) authorize an Optionee to elect to cash out an Option previously granted, in
either case at such time and based upon such terms and conditions as the
Committee shall establish.

      ARTICLE 7. PAYMENT FOR OPTION SHARES.

            7.1. GENERAL RULE. The entire Exercise Price of Common Shares issued
upon exercise of Options shall be payable in cash or cash equivalents at the
time when such Common Shares are purchased. The Stock Option Agreement shall
specify that payment may be made in cash and, if so determined by the Committee,
in one or more of the form(s) described in this Article 7.

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            7.2. SURRENDER OF STOCK. To the extent that this Section 7.2 is
applicable, payment may be made with Common Shares which are already owned by
the Optionee. Such Common Shares shall be valued at their Fair Market Value on
the most recent trading day before the date when the new Common Shares are
purchased under the Plan. The Optionee shall not surrender Common Shares in
payment of the Exercise Price if such surrender would cause the Company to
recognize compensation expense with respect to the Option for financial
reporting purposes.

            7.3. EXERCISE/SALE. To the extent that this Section 7.3 is
applicable, payment may be made by the delivery (on a form prescribed by the
Company) of an irrevocable direction to a securities broker approved by the
Company to sell Common Shares and to deliver all or part of the sales proceeds
to the Company in payment of all or part of the Exercise Price and any
withholding taxes.

            7.4. EXERCISE/PLEDGE. To the extent that this Section 7.4 is
applicable, payment may be made by the delivery (on a form prescribed by the
Company) of an irrevocable direction to pledge Common Shares to a securities
broker or lender approved by the Company, as security for a loan, and to deliver
all or part of the loan proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.

            7.5 PROMISSORY NOTE. To the extent that this Section 7.5 is
applicable, payment may be made with a full-recourse promissory note.

            7.6. OTHER FORMS OF PAYMENT. To the extent that this Section 7.6 is
applicable, payment may be made in any other form that is consistent with
applicable laws, regulations and rules.

      ARTICLE 8. RESTRICTED SHARES.

            8.1. TIME, AMOUNT AND FORM OF AWARDS. Each grant of Restricted
Shares under the Plan shall be evidenced by a Restricted Stock Agreement between
the recipient and the Company. Such Restricted Shares shall be subject to all
applicable terms of the Plan and may be subject to any other terms that are
consistent with the Plan. The provisions of the various Restricted Stock
Agreements need not be identical.

            8.2. PAYMENT FOR AWARDS. To the extent that an Award is granted in
the form of Restricted Shares, the Award recipient, as a condition to the grant
of such Award, may be required to pay the Company in cash or cash equivalents an
amount equal to the par value of such Restricted Shares.

            8.3. VESTING CONDITIONS. Each Award of Restricted Shares may or may
not be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Stock Award Agreement. The
Committee may include among such conditions the requirement that the performance
of the Company or a business unit of the Company (as determined by the Company's
independent auditors) for a specified period of one or more years equal or
exceed a target determined in advance by the Committee. Such target

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shall be based on one or more of the criteria set forth in Schedule A. The
Committee shall determine such target not later than the 90th day of such
period. In no event shall the number of Restricted Shares which are subject to
performance-based vesting conditions and which are granted to any Participant in
a single calendar year exceed 500,000, subject to adjustment in accordance with
Article 10. A Stock Award Agreement may provide for accelerated vesting in the
event of the Participant's death, disability or retirement or other events. The
Committee may determine, at the time of granting Restricted Shares or
thereafter, that all or part of such Restricted Shares shall become vested in
the event that a Change in Control occurs with respect to the Company.

            8.4. VOTING AND DIVIDEND RIGHTS. The holders of Restricted Shares
awarded under the Plan shall have the same voting, dividend and other rights as
the Company's other stockholders. A Stock Award Agreement, however, may require
that the holders of Restricted Shares invest any cash dividends received in
additional Restricted Shares. Such additional Restricted Shares shall be subject
to the same conditions and restrictions as the Award with respect to which the
dividends were paid.

      ARTICLE 9. STOCK APPRECIATION RIGHTS.

            9.1. TIME, AMOUNT AND FORM OF AWARDS. Each Award of a Stock
Appreciation Right under the Plan shall be evidenced by a Stock Appreciation
Rights Agreement between the recipient and the Company. Such Award shall be
subject to all applicable terms of the Plan and may be subject to any other
terms that are consistent with the Plan. The provisions of the various Stock
Appreciation Rights Agreements need not be identical.

            9.2. RIGHTS TO RECEIVE. An Award of a Stock Appreciation Right
entitles the holder, upon exercise, to receive in cash an amount equal to the
difference between the Base Value and the Fair Market Value of a Common Share on
the date the Stock Appreciation Right is exercised. The Base Value will be
determined by the Committee.

            9.3. CONDITIONS. Each Award of a Stock Appreciation Right may or may
not be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Stock Appreciation Rights
Agreement. The Stock Appreciation Rights Agreement shall also specify the term
of the Stock Appreciation Right, provided that the term of a Stock Appreciation
right shall in no event exceed 10 years from the date of grant. A Stock
Appreciation Rights Agreement may provide for accelerated vesting in the event
of the Participant's death, disability or retirement or other events. The
Committee may determine, at the time of granting Stock Appreciation Rights or
thereafter, that all or part of such Stock Appreciation Rights shall become
vested in the event that a Change in Control occurs with respect to the Company.

            9.4. NUMBER OF STOCK APPRECIATION RIGHTS. The aggregate number of
Stock Appreciation Rights awarded under the Plan to any Participant in a single
calendar year shall not exceed 500,000, subject in each case to adjustment in
accordance with Article 10.

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            9.5. BUYOUT PROVISIONS. The Committee may at any time, at such terms
and conditions as it determines, buyout a Stock Appreciation Right for a payment
in Common Shares (which may or may not include Restricted Shares), Stock Options
and cash for any fractional Common Share. The value of such combination of Stock
Options, cash and Common Shares may not exceed the difference between the Base
Value and Fair Market Value of a Common Share on the date of such buyout. The
Committee may, at its discretion, use Options with an Exercise Price below Fair
Market Value on date of grant to buyout Stock Appreciation Rights. If Options
are used to buyout Stock Appreciation Rights, the Exercise Price of these
Options will not be lower than the Exercise Price of the Stock Appreciation
Rights that are being bought out. For purposes of this provision, the value of
Stock Options will be determined by the Committee at its discretion.

      ARTICLE 10. PROTECTION AGAINST DILUTION.

            10.1. ADJUSTMENTS. In the event of a subdivision of the outstanding
Common Shares, a declaration of a dividend payable in Common Shares, a
declaration of a dividend payable in a form other than Common Shares in an
amount that has a material effect on the price of Common Shares, a combination
or consolidation of the outstanding Common Shares (by reclassification or
otherwise) into a lesser number of Common Shares, a recapitalization, a stock
split or reverse stock split, a spin-off or a similar occurrence, the Committee
shall make such equitable adjustments as it, in its sole discretion, deems
appropriate in one or more of (a) the number of Options, Restricted Shares and
Stock Appreciation Rights available for future Awards under Article 4, (b) the
limitations set forth in Sections 6.2, 8.3 and 9.4, (c) the number of Common
Shares covered by each outstanding Award or (d) the Exercise Price under each
outstanding Option and the Base Value under each outstanding Stock Appreciation
Right. Except as provided in this Article 10, a Participant shall have no rights
by reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend or any other increase
or decrease in the number of shares of stock of any class.

            10.2. DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Committee shall notify each
Participant as soon as practicable prior to the effective date of such proposed
transaction. The Committee in its discretion may provide for a Participant to
have the right to exercise his or her Options and Stock Appreciation Rights
until 10 days prior to such transaction as to some or all of the Common Shares
covered thereby, including Common Shares as to which the Options and Stock
Appreciation Rights would not otherwise be exercisable. In addition, the
Committee may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option or to any Restricted Shares shall
lapse as to some or all such Shares, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated. To the
extent not previously exercised, Awards shall terminate immediately prior to the
consummation of such proposed action.

            10.3. REORGANIZATION. In the event that the Company is a party to a
merger or other reorganization, outstanding Options, Restricted Shares and Stock
Appreciation Rights shall

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be subject to the agreement of merger or reorganization. Such agreement may
provide, without limitation, for the continuation of outstanding Awards by the
Company (if the Company is a surviving Company), for their assumption by the
surviving company or its parent or subsidiary, for the substitution by the
surviving company or its parent or subsidiary of its own awards for such Awards,
for accelerated vesting and accelerated expiration, or for settlement in cash or
cash equivalents.

      ARTICLE 11. LIMITATION ON RIGHTS.

            11.1 RETENTION RIGHTS. Neither the Plan nor any Award granted under
the Plan shall be deemed to give any individual a right to remain an Employee or
Outside Director. The Company and its Parents, Subsidiaries and Affiliates
reserve the right to terminate the service of any Employee or Outside Director
at any time, with or without cause, subject to applicable laws, the Company's
certificate of incorporation and bylaws and a written employment agreement (if
any).

            11.2. STOCKHOLDERS' RIGHTS. A Participant shall have no dividend
rights, voting rights or other rights as a stockholder with respect to any
Common Shares covered by his or her Options or Stock Appreciation Rights prior
to the time when a stock certificate for such Common Shares is issued or, in the
case of an Option, the time when he or she becomes entitled to receive such
Common Shares by filing a notice of exercise and paying the Exercise Price. No
adjustment shall be made for cash dividends or other rights for which the record
date is prior to such time, except as expressly provided in the Plan.

            11.3 REGULATORY REQUIREMENTS. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue Common Shares under the
Plan shall be subject to all applicable laws, rules and regulations and such
approval by any regulatory body as may be required. The Company reserves the
right to restrict, in whole or in part, the delivery of Common Shares pursuant
to any Award prior to the satisfaction of all legal requirements relating to the
issuance of such Common Shares, to their registration, qualification or listing
or to an exemption from registration, qualification or listing.

            11.4 TRANSFER. Except as expressly provided in the case of death,
only the Participant may exercise any grants. During his or her lifetime, the
Participant cannot transfer or assign grants made under this Plan. If the grant
is sold or used as security for a loan, this grant will be immediately
cancelled. Upon death, the Participant's Award grant will be transferred
pursuant to his or her beneficiary designation, will, or the laws of intestacy
(in such order).

      ARTICLE 12. WITHHOLDING TAXES.

            12.1. GENERAL. To the extent required by applicable federal, state,
local or foreign law, a Participant or his or her successor shall make
arrangements satisfactory to the Company for the satisfaction of any withholding
tax obligations that arise in connection with the Plan. Any other provision of
the Plan notwithstanding, the Company shall not be required to issue any Common
Shares or make any cash payment under the Plan until such obligations are
satisfied.

                                       10
<PAGE>

            12.2. SHARE WITHHOLDING. The Committee may permit a Participant to
satisfy all or part of his or her withholding or income tax obligations by
having the Company withhold all or a portion of any Common Shares that otherwise
would be issued to him or her or by having the Participant surrender all or a
portion of any Common Shares that he or she previously acquired. Such Common
Shares shall be valued at their Fair Market Value on the most recent trading
day before the date when taxes otherwise would be withheld in cash.

      ARTICLE 13. FUTURE OF THE PLAN.

            13.1. TERM OF THE PLAN. The Plan, as set forth herein, shall become
effective on August 21, 2001. The Plan shall remain in effect until it is
terminated under Section 13.2, except that no ISOs shall be granted after August
20, 2011.

            13.2. AMENDMENT OR TERMINATION. The Board may, at any time and for
any reason, amend or terminate the Plan. An amendment of the Plan shall be
subject to the approval of the Company's stockholders only to the extent
required by applicable laws, regulations or rules. No Awards shall be granted
under the Plan after the termination thereof. The termination of the Plan, or
any amendment thereof, shall not affect any Award previously granted under the
Plan.

      ARTICLE 14. EXECUTION.

            To record the adoption of the Plan by the Board, the Company has
caused its duly authorized officer to affix the corporate name and seal hereto.

                                            THE ST. JOE COMPANY

                                            By /s/ Rachelle Gottlieb
                                            ------------------------------------
                                            Rachelle Gottlieb, Vice President of
                                            Human Resources<PAGE>
                                                                   Exhibit 10.25

                              THE ST. JOE COMPANY
                        1650 Prudential Drive, Suite 400
                        Jacksonville, Florida 32201-1380

                                January 27, 1999

Mr. Kevin M. Twomey
1601 Emerald Bay                             PERSONAL AND CONFIDENTIAL
Laguana Beach, CA 91108

Dear Kevin:

     The St. Joe Company (the "Company") is pleased to offer you employment on
the following terms.

1.   Position.  You will serve in a full-time capacity as President and Chief
Financial Officer for St. Joe and its wholly owned subsidiaries. You will
report directly to Peter S. Rummell. Your duties will include those as assigned
by the Chief Executive Officer.

2.   Salary.  You will be paid a salary at the annual rate of $450,000 (the
"Base Salary"), payable in accordance with the Company's standard payroll
practices for salaried employees. This salary will be subject to reevaluation
on each April 1, commencing April 1, 2000. It may be increased but not reduced
during your employment, pursuant to the Company's employee compensation
policies in effect from time to time. You will also receive a car allowance of
$1,000 per month (gross) in addition to your base salary. This allowance
constitutes the full and complete reimbursement of all car expenses by the
Company. This allowance will not be included as wages in the calculation of any
benefits or compensation plans.

3.   Bonus.  You will be eligible to participate in the Company's annual
discretionary bonus plan, which is based on overall Company performance,
Division performance and individual

<PAGE>
Page 2

performance for the calendar year with an award range of 0% to 75% of your Base
Salary. This award range will not be reduced during your employment with the
Company.

4.  Stock Options. Subject to the approval of the Company's Board of Directors,
    you will be granted a nonstatutory option to purchase 500,000 shares of the
    Company's Common Stock. The exercise price per share will be equal to the
    closing price on the date previous to the date the Committee grants the
    option. Twenty percent of the option shares vest on the first anniversary of
    the vesting commencement date (February 12, 1999) and an additional twenty
    percent will vest on each subsequent anniversary of the vesting commencement
    date. The option will have a 10-year term.

5.  Restricted Stock. Subject to the approval of the Company's Board of
    Directors, you will be granted 100,000 shares of restricted common stock.
    Forty percent of the restricted shares vest on the second anniversary of the
    vesting commencement date (February 12, 1999) and an additional twenty
    percent of the restricted shares will vest on each subsequent anniversary of
    the vesting commencement date. Except as provided below, any non-vested
    Restricted Shares automatically revert to the Company (without any payment)
    when your service as an employee of the Company or a subsidiary of the
    Company terminates.

6.  Effect of Change in Control, Termination, Disability or Death. In the event
    of a change in control of the Company as defined in Exhibit A (attached) or
    a termination of Employee's employment without cause, or disability, or upon
    Employee's death, subject to Section 13

<PAGE>
Page 3

    and 14 herein, the vesting of the nonstatutory stock option and restricted
    stock will accelerate, and Employee will be owner and holder of such stock
    option and restricted stock without restrictions. In the event of the
    involuntary termination of Employee's employment for cause as set forth in
    Section 12 herein, or the Employee's voluntary termination of his
    employment, all of the nonstatutory stock options and restricted stock that
    had not vested in Employee at that time will lapse, and Employee will have
    no right in same. All of the option shares will be registered under the
    Securities Act of 1933 on or before the date when the first installment of
    the option vests.

7.  Stock Options Plans. The terms of the St. Joe Company 1997 and/or 1998 Stock
    Incentive Plans shall apply to this Agreement, and shall control in all
    instances except where specifically in conflict with the language of this
    Agreement in which case the language of this Agreement shall control.

8.  Benefits. You and your family will be eligible for all benefit programs and
    perquisites that are offered from time to time to similarly situated
    officers of the Company.

9.  Expense Reimbursement. You will be eligible for reimbursement of necessary
    and reasonable business expenses subject to Company policy.

10. Relocation Benefits. Your relocation package will include packing and
    shipment of your office and household goods from Laguana Beach, California
    to Jacksonville and storage for

<PAGE>
Page 4

     up to 180 days, reimbursement of all reasonable and customary expenses
     associated with the sale of your primary residence in Laguana Beach and the
     purchase of a primary residence in  Jacksonville. This includes up to two
     mortgage points to "buy down" your mortgage and up to one point in
     origination fees. In the event that you purchase a home in Jacksonville
     prior to the sale of your home in Laguana Beach the Company will provide
     you with an interest free "bridge loan" equivalent to the down payment on
     the purchase of your new home. This loan is to be reimbursed upon the sale
     of your home in Laguana Beach. You will receive temporary housing (not
     including meals and incidentals) in a Company apartment in Jacksonville
     through April 30, 1999. This date may be extended by the Company. Prior to
     shipment of your primary household goods, we will ship two automobiles from
     Laguana Beach and a partial shipment of household goods to Jacksonville. We
     will provide a rental automobile in Jacksonville until these cars arrive.
     You will be entitled to receive from the Company a gross-up payment equal
     to all federal and state taxes imposed on the reimbursement of
     nondeductible relocation costs and on the gross-up payment itself. The
     intent of the preceding sentence is to hold you harmless, in an after-tax
     basis, from the tax impact of all reimbursements of nondeductible
     relocation costs.

11.  Period of Employment. Your employment with the Company will be "at will,"
     meaning that either you or the Company will be entitled to terminate your
     employment at any time and for any reason, with or without cause, upon 30
     days' written notice. Any contrary representations which may have been made
     to you are superseded by this offer. Except for other specific provisions
     of this Agreement relating to termination, this is the full and

<PAGE>
Page 5

     complete Agreement between you and the Company on this term. The "at will"
     nature of your employment may only be changed in an express written
     agreement signed by you and a duly authorized officer of the Company.

12.  Severance Pay. Notwithstanding Paragraph 11, in the event that the Company
     terminates your employment without your consent for any reason other than
     cause or disability, you will receive severance pay in a lump sum in an
     amount equal to 150% of your Base Salary at the rate in effect at the time
     of your termination, plus 50% of the amount of any bonus awarded you the
     prior year (in the event that you are terminated under this paragraph prior
     to receiving any bonus payment, you will be entitled to a payment
     equivalent to 30% of your then current base salary); less any severance
     payments under the Company's standard severance program, provided; however,
     if you receive or are entitled to receive payment under a severance
     agreement with the Company that provides payments or benefits under a
     Change in Control then no payments shall be made to you under this
     Paragraph 9.

     If termination of your employment is subject to this paragraph, the Company
     will provide you and your family health insurance coverage, including, if
     applicable, COBRA reimbursement and disability insurance coverage under the
     applicable Company plans for a period of 12 months following termination or
     until you start other full time employment, whichever is earlier.

     For purposes of this Agreement, "cause" means gross negligence, misconduct,
     nonfeasance, a material breach of this Agreement, conviction following
     final disposition of any

<PAGE>

Page 6

     available appeal of a felony, or pleading guilty or no contest to a felony.

13.  Termination Upon Death.  In the event of your death during your
     employment, this Agreement shall terminate and the Company shall only be
     obligated to pay your estate or legal representative the Base Salary
     provided for herein to the extent earned by you prior to such event.

          However, the Company may pay your estate or legal representative a
     bonus which you may have earned prior to your death.

14.  Disability.  If you are unable to perform the services required of you as
     a result of any disability and such disability continues for a period of
     120 or more consecutive days or an aggregate of 180 or more days during any
     12-month period during your employment, the Company shall have the right,
     at its option, to terminate your employment. Unless and until so
     terminated, during any period of disability during which you are unable to
     perform the services required of you, your salary shall be payable to the
     extent of, and subject to, Company's policies and practices then in effect
     with regard to sick leave and disability benefits.

15.  Insurance and Indemnification.  The Company will indemnify you for your
     actions as a Company employee or officer pursuant to Company policy and,
     prior to commencement of your service, will confirm it has in place
     adequate insurance coverage acceptable to you for your actions as a Company
     employee or officer.

<PAGE>
Page 7

16.  Outside Activities. While employed by the Company, you will not engage in
     any other employment, or business activity for compensation without the
     written consent of the Company. While employed by the Company, you also
     will not compete with or assist any person or organization in competing
     with the Company, in preparing to compete with the Company, or in hiring
     any employees of the Company.

17.  Withholding Taxes. All forms of compensation referred to in this Agreement
     are subject to reduction to reflect applicable withhold and payroll taxes.

18.  Entire Agreement. This Agreement contains all of the terms of your
     employment with the Company and supersedes any prior understandings or
     agreements, whether oral or written, between you and the Company.

19.  Amendment and Governing Law. This Agreement may only be amended or modified
     by an express written agreement signed by you and a duly authorized officer
     of the Company. The terms of this Agreement and the resolution of any
     disputes will be governed by Florida law.

     We hope that you find the foregoing terms acceptable. You may indicate
your agreement with these terms and accept this offer by signing and dating the
enclosed duplicate original of this letter and returning it to me. As required
by law, your employment with the Company is
<PAGE>
Page 8

also contingent upon your providing legal proof of your identity and
authorization to work in the United States. This offer, if not accepted, will
expire at the close of business on Monday, February 1, 1999.

                                   Very truly yours,

                                   THE ST. JOE COMPANY

                                   By /s/ Michael F. Bayer
                                   ------------------------
                                   Michael F. Bayer
                                   Vice President -- HR and Administration

I have read and accept this employment offer:

/s/ Kevin M. Twomey
---------------------
Signature of Kevin M. Twomey
Dated: 1/29/99

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